Case ID: ny_246/html/0609-01.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Harry L. Allen, as Trustee in Bankruptcy of the American Railway Brotherhood Association, Inc., Respondent, v. D. Matthew Ryan, Appellant.
    
      Corporations -— stocks and stockholders ■ — • action by trustee of bankrupt corporation to recover unpaid subscription for stock.
    
    
      Allen v. Ryan, 219 App. Div. 634, affirmed.
    (Argued October 24, 1927;
    decided November 22, 1927.)
    Appeal from a judgment, entered March 8, 1927, upon an order of the Appellate Division of the Supreme Court in the fourth judicial department, reversing a judgment in favor of defendant entered upon a dismissal of the complaint by the court at a Trial Term without a jury and directing judgment in favor of plaintiff. The action was to recover the balance of an unpaid subscription for stock in the American Railway Brotherhood Association, Inc. Defendant had subscribed for twenty shares and paid ten per cent of the par value of the stock. He contended that there could be no recovery in this action because the corporation was bankrupt and a stock certificate could not be issued and if issued it would be worthless.
    
      
      James O. Sebring for appellant.
    
      John Griffin for respondent.
   Judgment affirmed, with costs; no opinion.

Concur: Cardozo, Ch. J., Pound, Crane, Andrews, Lehman and O’Brien, JJ. Not sitting: Kellogg, J.