Lotus N. Southworth, as Trustee in Bankruptcy of the Remington Automobile and Motor Company, Respondent v. Andrew…

Summary

The New York Court of Appeals reversed the judgment against the defendant stockholder and remanded for a new trial, holding that under New Jersey law – presumed to follow New York common law – the shareholder was not liable for the unpaid portion of the par value because the subscription contract was fully performed and no statute or charter imposed additional liability. The Court also held that the federal district court's assessment order could not be attacked on the merits of liability.