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34 How. Pr. 185

Scott v. Roberts

New York Supreme Court

Decided November 15, 1867

New York Supreme Court · decided 1867-11-15

The complaint alleged the incorporation of a bank by the state of Georgia, in 1830 j the issue of bills from 1831 • to 1863, to the amount of $1,500,000, which the plaintiff holds to the amount of $100,000 ; that payment had been demanded and refused; that at the time of issuing the bills, the bank had a capital of $500,000 in gold and silver coin, and other property; that the defendant some time before 1854, was elected a director, and continued to act as such till January…

Decided 1867-11-15

Clerke, J.

¶1These are actions brought by the several plan-tiffs as the holders of the bills of a bank, incorporated by the state of Georgia, against the defendant, as a director of the corporation.

¶2The reasons which I have mentioned in the preceding cases, apply to these with greater force. But more especially applicable to these cases is the rule well established, that a stockholder cannot sue directors for damages on the ground their stock was made valueless by the misconduct of the defendants.

¶3If a stockholder cannot maintain such an action, a creditor certainly cannot do so.

¶4Judgment on the demurrers, with costs.

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