Steck v. Bridgeport Water Co.

Citations

• 24 Pa. Super. 188
• 1904 Pa. Super. LEXIS 154

Syllabus

<p>Corporations — Suit for money loaned — Assessment—Statute of limitations.</p> <p>In an action against a corporation to recover money alleged to be loaned to the company, it appeared that the plaintiff was an officer of the corporation, and that he paid to the company $2.00 per share on his stock, which stock was full paid and nonassessable. The payment was made under a resolution of the directors providing for such assessment' per share, but resolving “ that the foregoing assessment shall be treated as an assessment loan, and that the several assessments so paid by the respective stockholders shall be so considered and held in good faith until all the stockholders shall have met and paid their respective assessments, made as hereinbefore mentioned, and shall then become absolute under this resolution.” Some of the stockholders did not pay the assessment. Plaintiff subsequently sold and assigned his stock, and some years afterward brought suit to recover the amount of the loan or assessment which he had paid. The evidence showed that the company interpreted its resolution so as to require it to refund the money to the actual owner of the stock at the time when the company would be legally called upon to refund. There was also evidence that the plaintiff had sold his stock by representations which indicated that he treated the loan as running with the stock. The company in fact paid the loan to plaintiff’s assignee. The evidence varied as to the date at which it could be fairly determined that the loan should be repaid, if the condition of subscription failed. The court charged that the company had a reasonable time to collect the assessment from all the stockholders ; that no action accrued to plaintiff until such reasonable time expired. Held, that the case was for the jury, and that a verdict and judgment should be sustained.</p>