168 Ky. 609 | Ky. Ct. App. | 1916
Opinion op the Coubt by
— Granting appeal and reversing.
The Wallsend Coal and Coke Company is a mining corporation organized under the laws of this State. While engaged in mining it went upon the adjacent property of Lewis Apperson and removed therefrom coal of the value of $296.40. Subsequently the company. disposed of its property to the Continental Coal Corporation and had ceased to do business in this State. With the exception of $6,000.00 worth of bonds in the Continental Coal Corporation, it has distributed its assets ■among its stockholders. Harry T. Hanger, vice-president of and a stockholder in the Wallsend Coal and Coke ■Company, received in the distribution assets amounting to $282.50. The $6,000.00 in bonds, which have a market value more than sufficient to discharge plaintiff’s debt, are in the possession of the president of the Wallsend •Coal and Coke Company as trustee-, and are held by him for the purpose of meeting any unliquidated claims against the company. He lives in Virginia.
Without having previously taken any steps to recover of the corporation, plaintiff, Lewis Apperson, brought this suit against Hanger to recover of him individually, on the ground that he was personally liable to the extent of assets received, which should have been used in payment of plaintiff’s claim. The case was submitted on the pleadings and an agreed statement of facts and judgment rendered in favor, of plaintiff. Defendant has moved for an appeal.
We have no statute in this State making an officer or a. stockholder in a corporation primarily liable in a case like this for the debt of a corporation. The only ground, therefore-, on which he can be held liable is that, while the corporation was insolvent and unable to pay its debts, he received from the corporation assets which should have been used in. discharging its debts. As a condition precedent to such a recovery, it is generally held that the creditor must procure a judgment against the company itself and a return of “no property found.”
Wherefore the appeal is granted and the judgment is reversed and cause remanded with ■ directions to dismiss the petition.