The herald., 1897-03-07
INTERSTATE LIABILITY
A Foreign Creditor Can Enforce Liability
Against California Stockholders

Foreign Creditor Can Enforce Liability
Against California Stockholders
The supreme court decision In the suit
of William Ferguson, plaintiff and re-
spondent vs. NJ. H. Sherman, the Elec-
tric Rapid Transit company ct al, de-
PENDANTS and appellants, carried on ap-
peal from department six Of the superior
court of this county, was received yes
terday.
Some knotty points are passed upon
In this decision and the court is placed
in the curious position of being COM
PEELED to interpret a constitutional pro-
vision of the state of Kansas. not here
tofore passed upon by the supreme court
of that state.
The appeal was taken from the judg-
ment and order denying a new trial.
The plaintiff pleaded that the Transit
company was a corporation organized
and existing under the laws of the state
of Kansas and that it was not railway
religious or charitable organization. He
further alleged judgment against the
corporation in the circuit court Of the
United States for the district of Kansas.
for the sum of S7717.50, with costs; that
he caused execution to be issued out of
the court to be levied upon the property
of the Transit company, which execu-
tion was returned unsatisfied An aver
ment followed to the effect that under
the constitution and laws of Kansas, if
any execution shall issue against the
property of corporation, other than
railway, religious or charitable corpora
ton, and there cannot be found any
property whereon to levy, then execu-
ton may be issued against any of the
stockholders to an extent equal in
amount to the amount of stock by him
or her owned, together with any amount
unpaid; or the plaintiff in the execution
may proceed by action to charge the
stockholders with the amount of the
judgment, and such plaintiff may main
tain an action at law against any one or
more of the stockholders of such corpor-
alton to recover a debt due by the cor
poration. The defendants other than
the Electric Rapid Transit company are
sued as stockholders of that corporation
The action is an effort upon the part
OF the judgment creditor of the Kansas
corporation to enforce against Califor-
MIA stockholders their statutory liability
for the judgment debt. On the trial the
provisions of the Kansas constitution
and statutes bearing upon the questions
were introduced in evidence. In section
1194, article 4, chapter 23, of the statutes,
bearing upon the matter of levying an
execution the alternative action is af-
forded in the words "or the plaintiff in
the execution may proceed by action to
charge the stockholders with the
amount of his judgment"
Plaintiffs action is admittedly an at
tempt to charge the stockholders under
the quoted portion of the statute refer
red to. Appellants contended that all of
the provisions of this act contemplate
special statutory remedies given by the
laws of another state, and not conso-
nant with the laws and proce dure of this
state, and that such liability cannot be
enforced in this action. 1T is undoubt-
edly true" says the court, that penal
ties and special remedies provided by
the laws of state will receive no extra
territorial recognition, and may not be
imported into courts of another state.
That question has recently received
careful consideration at the hands of
this court, and it is necessary to do no
more than refer to the case \of Russell
VS.. the Pacific Railway company, Q1S
Cal. 25S). Upon the other HAND it is