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See v. Heppenheimer

61 A. 843 (1905)

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See v. Heppenheimer

New Jersey Court of Chancery
61 A. 843 (1905)

  • Written by Elizabeth Yingling, JD

Facts

In exchange for stock in the Columbia Straw Paper Company (the company), William Heppenheimer and other shareholders (defendants) contributed to the company mills and plants used to manufacture straw paper. The valuation of the contributed property was based upon the capitalization of future profits expected to be generated from the sale of the manufactured product. When the company became insolvent, the creditors (plaintiffs) sued the shareholders for the corporate debt, alleging that the shareholders had not paid for their company stock.

Rule of Law

Issue

Holding and Reasoning (Pitney, J.)

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