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LOUGHMAN v. PITZ

January 2, 1941

LOUGHMAN
v.
PITZ et al.



The opinion of the court was delivered by: CAMPBELL

CAMPBELL, District Judge.

This is a motion for an order granting the defendants Edward A. Muller and Henry W. Muller, judgment of the pleadings dismissing said complaint as to said two defendants, upon the ground that it appears on the face thereof and upon the plaintiff's bill of particulars dated April 9, 1940, and plaintiff's supplemental bill of particulars dated June 14, 1940, that the said alleged claim and cause of action against th e said defendants Edward A. Muller and Henry W. Muller are barred by the Statute of Limitations of the State of New York, Section 49, Subdivision 4, New York Civil Practice Act, and for such other and further relief as may be proper.

This action is brought by the Receiver of the National Bank of Ridgewood against the directors of that bank to recover losses resulting from the alleged negligent, illegal and fraudulent administration of the bank's affairs by the defendant-directors.

 The bank commenced business on March 6, 1926, and was placed in the hands of a Receiver on July 12, 1937.

 For the purposes of this motion the allegations of fact contained in the complaint as supplemented by the plaintiff's original and supplemental bills of particulars are deemed to be true.

 They with other things allege as follows:

 There were nineteen directors.

 The defendants Edward A. Muller and Henry W. Muller served as directors from March 26, 1930, to the date of the receivership, July 12, 1937.

 Seven of the directors were in office during the entire term of Edward A. Muller and Henry W. Muller, and continued in office until the appointment of a Receiver on July 12, 1937.

 The bank was organized on March 6, 1926, and from on or about the month of April, 1926, to the month of June, 1929, maintained its principal place of business in the Borough and County of Queens, City and State of New York, and from on or about the month oif June, 1929, to the 29th day of August, 1931, maintained such place of business in the Borough of Brooklyn, County of Kings, City and State of New York.

 On or about the 29th day of August, 1931, pursuant to an agreement between the Richmond National Bank of New York, and the Ridgewood Bank, the Richmond National Bank of New York took over the voluntary liquidation of the Ridgewood Bank.

 Thereafter the Richmond National Bank, the liquidator, remained open for the usual transaction of business until March 3, 1933, the banking holidays, when it closed.

 A conservator was appointed by the Comptroller for the Richmond National Bank on or about March 18, 1933, and a Receiver therefor was appointed by the Comptroller on or about November 14, 1933.

 The Receiver of the Richmond Bank continued the voluntary liquidation of the Ridgewood Bank until on or about the 12th day of July 1937, when the Comptroller appointed a Receiver for the Ridgewood Bank.

 The defendants Edward A. Muller and Henry W. Muller are charged in the complaint herein with negligently, illegally and fraudulently administering the bank's affairs, with the other defendants, and with being wrongdoers.

 It is also charged that the acts, or failures to act, with which the said defendants are charged, occurred between March 26, 1930, and August 29, 1931.

 This action was commenced by the filing of the complaint in the office of the Clerk of this Court on August 16, 1939 (Rule 3 of the Federal Rules of Civil Procedure, 28 U.S.C.A. following section 723c).

 A summons was issued by the Clerk on the 16th day of August, 1939, a little less than eight years after the last date above mentioned, and the said summons and complaint were served on the ...


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