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123 Kan. 665

Weber Engine Co. v. Barley

Supreme Court of Kansas

Decided June 11, 1927

Supreme Court of Kansas · decided 1927-06-11

Cited by 1 later decisions — most recently April 1933

1 state decisions

Relies on Weber Engine Co. v. Alter

Good law ✅— No negative treatment on recordhow we know

Decided 1927-06-11

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¶1The opinion of the court was delivered by

Harvey, J.:

¶2This is an action by a creditor against individual unit or certificate holders of the Olson Lease Syndicate, an association formed and operating under an agreement commonly called a business trust, a common-law trust, or a Massachusetts trust. Plaintiff seeks to hold such unit holders individually liable for the debts of the association. Defendants demurred to the petition. The trial court sustained the demurrer, and plaintiff has appealed.

¶3In Weber Engine Co. v. Alter, 120 Kan. 557, 245 Pac. 143, after thorough consideration and the examination of former decisions, it was held:

“Under articles of association in form of declaration of trust, trustees and shareholders are individually liable for the association’s debts, notwithstanding attempted limitation of liability.” (Syl. ¶ 2.)

¶4And in Linn v. Houston, ante, p. 409, 255 Pac. 1105, the question was again considered, and it was held:

“A common-law trust has none of the attributes of limited liability or freedom from personal liability which attach to limited partnerships or ordinary business corporations.” (Syl. ¶ 2.)

¶5These decisions control the case before us and require that the judgment of the court below be reversed with directions to overrule the demurrer. It is so ordered.

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