Wass v. Keene

CURTIS, J.—

This action was brought to recover against the defendant on his alleged liability as a stockholder of

[264]

the Wm. H. Reid & Co., Inc., a corporation. The facts in this case are in many respects similar to those in the case of

Comeau

v.

Keene, ante,

p. 256 [286 Pac. 1038], The Wm. H. Reid & Co., Inc., was a corporation carrying on a stock brokerage business, and defendant, one A. T. Connard, and Wm. H. Reid were its sole stockholders. This corporation and these persons and the relations they sustained to the creditors of said corporation are set forth and referred to in the opinion rendered in the case of

Comeau

v.

Keene, supra,

and the defendant herein is the same person who is defendant in said action, and this action is predicated upon his ownership of the same stock in said corporation which was made, the basis of said action of

Comeau

v.

Keene.

The findings in the present action present the following state of facts: In January, 1924, the plaintiff entered into a tentative agreement to open a trading account with the Wm. H. Reid & Co., Inc. At that time the defendant was a stockholder of said corporation. In pursuance of said agreement, plaintiff in the latter part of the month of March delivered and deposited with said corporation the sum of $3,350 “as a guarantee to said company for the full performance of his selling and purchasing orders to said company”; that on May 26, 1924, it was mutually agreed between said parties that said agreement should cease and terminate; that said sum of $3,350 was never withdrawn nor was it ever paid to the plaintiff, although frequent demands therefor had been made by the plaintiff on said corporation for its payment; and that at the time the plaintiff entered into said agreement the defendant Keene was the owner of 1,000 shares of the capital stock of said corporation. Upon these findings of fact, judgment was rendered in favor of the plaintiff, and the defendant has appealed.