110 N.Y. 109 | NY | 1888
This appeal presents the single question, whether a creditor's action against a stockholder in a limited *111
liability company, organized under the business corporations act (Chap. 611, of the Laws of 1875), for a debt of the corporation, upon the liability imposed by section 37, can be maintained after a suit to recover the debt has been commenced against the corporation, but before judgment has been obtained therein against the corporation. It is purely a question of statutory construction. The Constitution, by article 8, section 2, provides that dues from corporations shall be secured by such individual liability of the corporators, and other means, as may be prescribed by law, and the liability imposed may be absolute or conditional, immediate or secondary, as the legislature, in its discretion, may determine. The first thing to be determined in all such cases is, "what liability has been created by the particular statute in question." (Terry v. Little,
The order should, therefore, be affirmed, with leave to the defendant to answer within twenty days upon payment of costs.
All concur, except DANFORTH, J., not voting.
Ordered accordingly.