Schrader v. Manufacturers' Nat Bank of Chicago’s Empirical Analysis

Citation profile

29 federal appellate · 6 district · 36 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 96 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““no authority on the part of officers of the bank to transact any business in the name of the bank so as to bind its shareholders, except that which is implied in the duty of liquidation, unless such authority had been expressly conferred by the shareholders. * * * the power of the president or other officer of the bank to bind it by transactions after it was put into liquidation is that which results by implication from the duty to wind up and close its affairs. That duty consists in the collection and reduction to money of the assets of the bank, and the payment of creditors equally and ratably so far as the assets prove sufficient. Payments, of course, may be made in the bills receivable and other assets of the bank in specie, and the title to such paper may be transferred by the president or cashier by an indorsement suitable to the purpose in the name of the bank; but such indorsement and use of the name of the bank is in liquidation and merely for the purpose of transferring title. It can have no other effect as against the shareholders by creating a new obligation. It does not constitute a liberty, contract or engagement of the bank for which they can be held to be individually responsible.””

   2 later decisions quote this exact passage
   e.g. Giesy v. Amer. Nat. Bank of Portland · First Nat. Bank of Merkel v. Armstrong

2. ““Those creditors who made settlements after the bank was put into liquidation, and received from the president in that settlement paper of the bank, or in some cases the individual notes of Holmes himself, indorsed or guaranteed in the name of the bank, are not to be considered as creditors of the. bank entitled to subject the stockholders to individual liability. The individual liability of the stockholders, as imposed by and expressed in the statute, is indeed for all the contracts, debts, and engagements of such association, but must be restricted in its meaning to such contracts, debts, and engagements as have been duly contracted in the ordinary course of its business. That business ceased when the bank went into liquidation. After that there was no authority on the part of the officers to transact any business in the name of the bank so as to bind the shareholders except that which is implied in the duty of liquidation, unless such authority has been expressly conferred by the stockholders. * * * It is not within the power of the officers of the bank without express authority by such means to prolong indefinitely a liability on the part of the shareholders which is imposed by the statute only as a means of securing the payment of debts by an inslovent bank, when it is no longer able to continue business, and for the purpose of effectually winding up its affiairs. This is the very meaning of the word liquidation.” *”

   1 later decision quote this exact passage
   e.g. Assets Realization Co. v. Howard

3. “The agreement of Holmes (president and liquidating agent), made after the bank went into liquidation, to continue its guaranty upon the notes, a liability under which the People's Bank is now attempting to enforce against the stockholders, is not binding upon them, in view of what was said by this court in the case of Richmond v. Irons, before quoted.”

   1 later decision quote this exact passage
   e.g. First Nat. Bank of Merkel v. Armstrong