Bowden v. Johnson,
107 U.S. 251 (1883)

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U.S. Supreme Court

Bowden v. Johnson, 107 U.S. 251 (1883)

Bowden v. Johnson

Decided March 5, 1883

107 U.S. 251


1. Where the holder of shares of stock in a national bank who is possessed of information showing that there is good ground to apprehend the failure of the bank colludes with an irresponsible person with the design of substituting the latter in his place, and thus escaping the individual liability imposed by the provisions of sec. 12 of the Act of June 3, 1864, c. 106, and transfers his shares to such person, the transaction is a fraud on the creditors of the bank, and the liability of the transferror to them is not thereby affected.

2. A bill in equity filed by the receiver of the bank against the transferror and transferee to enforce such liability will lie where it is for discovery as well as relief, the transfer being good between the parties, and only voidable at the election of the complainant.

3. A letter of the Comptroller of the Currency, addressed to the receiver, directing him to bring suit to enforce the personal liability of every person owning stock at the time the bank suspended, is sufficient evidence that the decision of the Comptroller touching such personal liability preceded the institution of the suit. The liability bears interest from the date of the letter.

4. The decree below dismissing the bill was entered after a new receiver had been appointed. An appeal to this Court was taken in the name of the old receiver, as the complainant, the new receiver becoming a surety in the appeal bond. In this Court, the new receiver was, on his motion, substituted as the complainant and appellant, without prejudice to the proceedings already had, and the motion of the appellees to dismiss the appeal was denied.

Page 107 U. S. 252

The case is stated in the opinion of the Court.

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