The Birmingham age-herald., 1903-02-10

Henderson ct al vs. Hall ct al, and Hal!
 ct al. vs. Henderson ct al.-Bill in
 Equity by Judgment Creditor of a Cor
 poration Against Certain Stockholders
 to Subject Alleged Unpaid Stock Sub
 scription to the Satisfaction of a Judg
 ment.-Appeal from he Chancery Court
 of Montgomery.
 l. Bill by Judgment Creditor of Corpora ton to Subject Unpaid Stock Subscription to Payment of Judgment When Bill Fails to Show Corporation Bound by Transac- tion Attacked.-On a bill filed by judg ment creditor of a corporation against certain stockholders therein to subject alleged unpaid stock subscriptions to the satisfaction of his judgment, where it is averred. In anticipation of the plea of judgment, that the president of the cor poration pretending to be authorized thereunto, but not having such author ity," proposed to defendant stockholders that they pay their subscriptions and he would cancel their obligations in respect thereto and deliver to them certain bonds CT other assets of the company to the amount equal 10 the amount of the sub scrfptions paid, or pay them for their stcck in funds of the corporation, and this propc sition was accepted and eye cuted, on q demurrer to such bill 1t can not be considered as averTing that the corporation was, in any way, bound by the transaction or that the allegation of the want of authority referred to the corporation, and not to the president thereof
 Same; When Right Does Not Exist; Garnishment Where the president of corporation, acting without authority proposes to certain subscribers of the cap- ital stock of corporation that if they would pay their subscriptions in cash ho would cancel their obligations and trans Ter to them certain bonds owned by the corporation to an amount equal to their subscriptions so paid, or pay them for their stock in funds of the corporation and this proposition is accepted by such suoscribeis and the plan is carried out the corporation is not bound by such un- authorized acts of it's president and may sue or the subscription notes thus ille- gally cancelled; and a Judgment creditor. CT the corporation. whose judgment has been returned no property found has. bv virtue or section 2972 of the code of 1SsG. then In fierce Ocode 1896, section e1so) a Tlain, adequate and complete remedy at law by the process of garnishment for sunJecting the amounts due from sucn suoscrlbers to the satisfaction of his judp ment; and cannot niaintafn a suit in equity to subject the unpaid stock sub- scriptions to the payment Of his iudq. ment '' '""s
 I. Jurisdiction of Chancery Court to heach and Subject Choses in Action The Chancery court has no original jurisdiction at the suit of a iudement creditor, to reach and subject choses in action to the payment of a Judgment
 D. Equity Jurisdiction; Can Not Sub- 1eet Choses in Action of Judpment Debtor to Satisfaction of Judgment - In the absence of a statute. and where there is no averment of fraud or mis- take the existence of q trust or of some other fact recognized as a ground of equitable Jurisdiction, court of equity has no power to subject the choses in action of judgment debtor, which in- cludes the unpaid subscription to the capital stock of corporation, to the sat isfaction of his judgment on which exc cution has been returned mo property found"
 6. Same; Same; Can be Enforced by rnishment.-Inasmuch as by statutes authorizing garnishment proceedings a judgment creditor Is given the legal right to levy upon and subject choses in ac- tfon of his judgment debtor to the pay ment of the judgment, the right to sub ject such choses in action to the pay ment of the judgment can be enforced in equity when because of some impedi- ment 1t can not be enforced by garn- ishment.
 T. Corporations; Assets not a Trust Fund.-The assets of corporation which includes subscriptions to capital stock of a corporation and debts due 1t for sub scriptions to it's capital stock. do not. under any circumstances, constitute a trust fund for the payment of it's cor porate debts; and, therefore. the juris- diction of a court of equity to subject debts due a corporation for stock sub scriptions to the satisfaction of a judg- ment against the corporation can not be rested upon the idea that such choses in action are impressed with trust
 g. Bill to Subject Unpaid Subscriptions to Payment of Judgment; When Elec- ton does not Constitution Estoppel.- Where a respondent to bill filed by a judgment creditor of a corporation against certain stockholders to subject alleged unpaid stock subscriptions to the payment of a judgment, procures an or der recurring the complainants in such bill to elect whether they would further prescott such bill or proceed with garn- ishment proceedings instituted by them against said respondents, al that time pending in court of law and involving the same matters inVolVed In the bill in the court of equity. and the com plainants elect to dismiss the proceedings in garnishment and continue the prosecu- ton of the suit in equity, by compelling such election, the respondents are not estopped to thereafter object to the jurisdiction of the court of equity of the cause as presented in such bill. nor are the respondents thereby cut off from any defense they would otherwise have had against the suit in equity.
 9. Same: Right of Assignee to Maintain