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# SEEKING TO # ENFORCE # LIABILITY Chief Justice Dougias and Justices Dubois and Blodgett today heard on de- murrers of respondents in the suits brought by Alfred Hazlett, receiver of the American bank, of Beatrice, Ne- braska, against Thomas A. Woodhead, Mary E. Woodhead, Providence Mutual Investment company and Mercantile Trust company. Mr. Hazlett was in- structed by the court, which appointed him receiver, to bring suits for the re- covery of all assets of the bank, and after showing that it was necessary to pay debts, to enforce the double liability of stockholders as provided by the Nebraska constitution and to bring the necessary suits against such stockholders. The present suits are brought in accord- ance with the Nebraska court's order. It has been judicially decreed, com- plainant claims, that the suits against the respondents are necessary, and that the decision of the supreme court of Nebraska finding such suits necessary is entitled to fuil faith and credit in Rhode Island, and that said receiver has de- manded and has been refused payment. A demurrer to each declaration was filed the same. the gorunds, however, are There are some 11 grounds stated in the briefs filed by Robert W. Burbank and John N. Butman, counsel for the respond- ents. I is claimed by the defendants that the ceclarations do not show that the receiv- er has authority to bring suit, in this state, that the defendants were parties to or in any way bond by the decision of the court in the case against the bank in Nebraska, that it does not apepar that the statutes or constitution of Nebraska au- thorize a receiver to sue to recover from a stockholder upon his liability as such, that under the decisions in Nebraska the receiver cannot bring action at law to re- cover in such cases as this but the rights of ali parties in interest should be deter- nrined in equity, that it does not appear what part, if any, of the alleged indebted- ness was contracted while defendants were stockholders, that it does not ap- rear judgment was ever obtained against the defendants in Nebraska, Further it is claimed that "The liabil- ity which the defendants seek to enforce is created by the statutes of a foreign state and is not considered a contractural Jiaolity in this state and is contrary to the policy of the laws of this state and will not be enforced by its courts against one of its citizens." Mr. Burbank, in concluding his brief, asserts that the recognition of the re- ceiver of the foreign bank rests upon comity between states which it is a well established principle will not be extended by courts of justice when they will there- by infiiet injury upon, or do injustice to their own citizens, and upon the full faith and credit required by the consti- tution and statute of the United States to be given to the judicial proceedings of the court of other states, which require- ment, however, leaves always open any defence which might have been available in the state of the judgment. The bank deficit amounts to $42,000 and not over $25,000 of the capital stock of $100,000 is owned by solvent persons. Na- than W. Littlefield and Chester W. Bar- rows represent the receiver.
