Harrigan v. Bergdoll, 270 U.S. 560 (1926)

Harrigan v. Bergdoll


No. 181


Argued November 23, 24, 1925
Decided April 12, 1926
270 U.S. 560

CERTIORARI TO THE SUPREME COURT
OF THE STATE OF PENNSYLVANIA

Syllabus

1. The state statute of limitations prescribing the time within which a suit may be brought against a shareholder of a local corporation to collect unpaid stock subscription for defrayal of the corporation’s debt applies when the suit is brought by a trustee of a bankrupt corporation pursuant to an order of the bankruptcy court assessing its shareholder. P. 564.

2. The nature, extent, and condition of the liability of a stockholder on account of the stock not full-paid, depend primarily on the law of the state or country by which the corporation was created. Id.

3. That law determines whether the liability is to the corporation or to creditors; if to the corporation, the right passes to its trustee in bankruptcy; but the Bankrupt Law does not modify the right or create a new one. Id.

4. By the law of Pennsylvania, this liability of shareholders of a Pennsylvania business corporation become fixed, so that the statute of limitations begins to run as soon as it is definitely ascertained that a company is insolvent and will be obliged to call unpaid stock subscriptions in order to satisfy its obligation. Scoville v. Thayer, 105 U.S. 143, distinguished. Id.

281 Pa. 186 affirmed. .

Certiorari to a judgment of the Supreme Court of Pennsylvania which affirmed a judgment for the defendant Bergdoll, based on the statute of limitations, in a suit to collect unpaid stock subscriptions.