The Montgomery advertiser., 1903-02-10
HEAD NOTES OF THE DECISIONS
 OF THE ALABAMA SUPREME COURT

EENDERsON ct. al. V. HALL ct al.
 AND HALL ct. al. vs. RENDER
 SON ct al
 Bill fin Equity by Judgment Creditor Of
 a Corporation Against Certain Stocx-
 holders to Subject Alleged Unpaid
 Stock Subscription to the Satisfaction
 of a Judgment.-Appeal from the
 Chancery Court of Montgomery.
 i. Bill by judgment creditor of corpo- ration to subject unpaid stock subscrfp- tion to payment of judgment; when bill fails to show corporation bound by trans action attacked.-On bill filed py Judgment creditor of corporation against certain stockholders therein. to subject alleged unpaid stock subscriptions to the satisfaction of his judgment, where it is ayerred, in anticipation of the plea of payment, that the president of the corporation pretending to be autnorizeo thereunto, but not having such author ity," proposed to defendant stockhoiders that they pay their subscriptions ana ne would cancel their obligations in respect thereto. and deliver to them certain bonds or other assets of the company to the amount equal to the amount or the subscription paid. or pay them for their stock in funds of the corporation, ana this proposition was accepted and exc cuted. on a demurrer to such bill, 1t can not be considered as averring that the corporatfon was, in any way, bound py inc transaction, or that the allegation or the want of authority referred to the cor poration and not to the President thereon.
 2. Same: when right does not exist' garnishment,- the President or cornoration. acting without authority, nronoses to certain subscribers of the cap ital stock of @ corporations that If they would pay their subscriptions in cash he would cancel their obligations and trans fer to them certain bonds owned by the corporation to an amount equal to tneir subscriptios so paid, or pay them TOT their stock in funds of the corporation. and this proposition is accepted by such subscribers and the plan is carried out' the corporation is not bound by such un- authorized acts of its president ana may sue on the subscription notes thus ilie- gally cancelled; and judgment creditor of the corporation, whose judgment has been returned no property found, has, by virtue of Section 2972 of the Code of 1886 then fin force Code. 1896. Sec. AS2) plain, adequate and complete remedy at law by the process of garnishment, Tor subjecting the amounts due from such subscribers to the satisfaction Of his judgment; and can not maintain sult in equity to subject the unpaid stock sub scriptions to the payment Of his Judg- ment.
 4. Jurisdiction of Chancery Court to reach and subject chooses in action.-The Chancery Court has no original turisdic~ ;ion at the suit of judgment creditor, to reach and subject choses in action to tbe payment of a judgment
 s. Equity Jurisdictions; can not subject choses in action of judgment debtor to satisfaction of j,Idgment.-In the absence of a statute, and where there is no aver ment of fraud or mistake, the existence of trust or of some other fact recog- nized as a ground of equitable 5urtsdic- tion, a court of equity has no power to subject the chooses ir action of Judg- ment detor. which includes the unpaid subscription to the capital stock Of a corporation, to the satisfaction or LIS judgment on which execution has been returned mo property found.
 G. Same: samo; can be enforced by arnishment.-Inasmuch as by statutes authorizing garnishment proceedings, Judgment creditor is given the legal right to levy upon and subject such choses In action to the payment of the judgment, the right to subject such chooses in action to the payment of the judgment can be enforced in equity when, because of some impediment it can not be enforced by garn.snment.
 T. Corporations; assets not a trust fund.-The assets of a corporation which includes subscriptions to capital stock of corporation and debts due It for sub- scriptions to its capital stock, do not, un- der any circumstances, constitute trust fund for the payment of its corporate debts; and, therefore, the jurisdiction of court of equity to subject debts due a corporation for stock subscriptions to the satisfaction of judgment against the corporation, can not be rested upon the idea that such chooses in action are inn pressed with a trust.
 8. Bill to subject unpaid subscriptions to payment of judgment; when election does not constitute estoppel.-Where a respondent to a 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 order requiring the complainants in such bill to elect whether they would further prosecute such bill or proceed with garnishment pro- ceedings instituted by them against said respondents at that time pending in a court of law and involving the same matters involved in the bill in the court of equity. and the complainants elect to dismiss the proceedings in garnishment and continue the prosecution of the suit in equity, by compelling such election, the