Meza v. Sword

YORK, J.

This is an appeal from a judgment of dismissal entered after sustaining demurrer to plaintiffs’ complaint without leave to amend.

This action is brought by the heirs of Federico Meza, deceased, against the stockholders of Higgins Estate, a corporation, in damages for the wrongful death of said deceased. The death occurred on the twenty-sixth day of March, 1929, and the complaint was filed on the twenty-second day of October, 1930.

The defendants James 0. Sword, Margaret A. Kearney and Teresa Sword interposed a demurrer on the ground that the complaint did not state facts sufficient to constitute a cause of action, and also that said cause of action was barred by the statute of limitations as found in subdivision

3,

section 340, Code of Civil Procedure.

The demurrer was sustained without leave to amend.

Respondents in their brief admit that prior to November 4, 1930, upon which date, by vote of the people of the state of California, the constitutional provision creating stockholders’ liability in a corporation was expressly repealed, an action could be maintained against stockholders for damages for the wrongful death of a person caused by the corporation, even in the absence of a suit against the corporation itself.

With this admission by respondents, the issues involved in the case before us are narrowed to the following questions :

1. Can an action be maintained against the stockholders of a corporation on a cause of action arising against the corporation on March 26, 1929, filed on October 22, 1930, since the repeal of article XII, section 3, of the California Constitution abolishing stockholders’ Lability?

[294]

2. Is the action for wrongful death against stockholders, as provided for in sections 376 and 377, Code of Civil Procedure, barred by section 340 or by section 359 of the Code of Civil Procedure?