Richardson v. Barnum

California Supreme Court Apr 4, 1938 No. L. A. No. 16534Published

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Holding. The court held that the three-year statute of limitations for enforcing stockholder liability under the Bank Stockholders’ Liability Act begins to run from the date the assessment is levied.

Issues

Whether an action to enforce stockholder liability is barred by the three-year statute of limitations under section 359 of the Code of Civil Procedure.
When the three-year period for the statute of limitations begins to run in an action to enforce stockholder liability.

Disposition. Affirmed

Quotations verified verbatim against the opinion

“the three-year period prescribed by section 359 of the Code of Civil Procedure began to run from the time the assessment was levied.”

THE COURT. This is an action to enforce the liability of stockholders of an insolvent bank on an assessment levied by the Superintendent of Banks pursuant to the terms of the Bank Stockholders’ Liability Act (Deering’s Gen. Laws, Act 652A). The assessment was levied April 7, 1932. The action was commenced on May 17, 1935. The lower court sustained a demurrer to the complaint, holding that it was barred by the statute of limitations. Plaintiff appealed.

In Richardson v. Craig, L. A. No. 16521, this day filed (ante, p. 131 [77 Pac. (2d) 1077]), the same issue was presented as in the instant case, and we there held that the three-year period prescribed by section 359 of the Code of Civil Procedure began to run from the time the assessment was levied. On the authority of said case, the judgment is affirmed.

Rehearing denied.

Richardson v. Barnum

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