135 Mich. 540 | Mich. | 1904
The circuit judge directed a verdict in favor of defendant. The plaintiff has brought the case here by writ of error.
On the part of the plaintiff it is claimed that in March, 1883,the Houghton Lake Lumber Company was organ-, ized, the stockholders in which were Jonathan Boyce, holding $80,000 of stock, Isabella J. Boyce, his wife, $10,000 of stock, and Edward J. Boyce, their son, $10,000 of stock. The last-named amount was given to the son by the father. It is claimed the company entered upon active
A good many questions are raised by counsel. We think it necessary to discuss but one of them. If Mr. Jonathan Boyce wrongly converted the property of the corporation, it had a cause of action against him. Mrs. Bates now stands in the place of Edward J. Boyce, a stockholder in the corporation. Had he brought the action, even though he did it in his own name, it would be one in behalf of the corporation, and the recovery would be for the benefit of the corporation and all its stockholders. The statute of limitations would have run against such an action the same as it would had the action been brought by the corporation itself. See Wallace v. Bank, 89 Tenn. 630 (15 S. W. 448, 24 Am. St. Rep. 625); Brinckerhoff v. Bostwick, 99 N. Y. 185, 193 (1 N. E. 663). See, also, 1 Mor. Priv. Corp. § 271. In the case at bar the conversion of the corporate property is claimed to have taken place in 1883. The cause of action was therefore barred in 1889,
Judgment is affirmed.