American Mortgage Co. Ltd v. Sidways [1908] ScotLR 390 (31 January 1908)

American Mortgage Co. Ltd v. Sidways [1908] ScotLR 390 (31 January 1908)

Shares in a limited joint stock company incorporated in Scotland are arrestable jurisdictionis fundandae causa, as the obligation to account between the company and the shareholder is a valid subject of arrestment, regardless of whether a dividend is presently payable. The established practice and authority, particularly Sinclair v. Staples, support this position.

Citation
[1908] ScotLR 390
Parties
Pursuer: American Mortgage Company Limited; Defender: L.B. Sidway; Defender: H.T. Sidway
Jurisdiction
Scotland
Judgment Date
31 January 1908
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor
Outcome
appeal dismissed; interlocutor adhered to
Legal Topics
Arrestment, Jurisdiction, Shares in Joint Stock Companies, Enforcement of Foreign Judgments
Civil Procedure Company Law Arrestment Jurisdiction Shares in Joint Stock Companies Enforcement of Foreign Judgments

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Parties

American Mortgage Company Limited

Pursuer

L.B. Sidway

Defender

H.T. Sidway

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Are shares in a limited joint stock company incorporated in Scotland arrestable jurisdictionis fundandae causa?
  2. 2 Does the arrestment of such shares found jurisdiction against foreign defenders?

Ratio Decidendi

Shares in a limited joint stock company incorporated in Scotland are arrestable jurisdictionis fundandae causa, as the obligation to account between the company and the shareholder is a valid subject of arrestment, regardless of whether a dividend is presently payable. The established practice and authority, particularly Sinclair v. Staples, support this position.

Court Disposition

appeal dismissed; interlocutor adhered to

Orders

  • The Lord Ordinary's interlocutor is adhered to, finding that the arrestment of the shares founded jurisdiction against the defenders.