Carrol v. Green - 92 U.S. 509 (1875)
U.S. Supreme Court
Carrol v. Green, 92 U.S. 509 (1875)
Carrol v. Green
92 U.S. 509
The Exchange Bank of Columbia, S.C., failed in February, 1865. In June, 1872, its creditors filed a bill in equity to enforce their claims against the stockholders under a clause of the charter which, "upon the failure of the bank," rendered them individually liable for any sum not exceeding double the value of their respective shares. The defense set up the statute of
limitations of 1712, which requires actions upon the case, and actions of debt, grounded upon any contract without specialty, to be brought within four years. Held that as the liability of the stockholders arose from their acceptance of the act creating the corporation, and their implied promises to fulfill its requirements, the proper remedy was an action upon the case; and that, as the statute barred such an action at law, it was also a good defense in equity.