Limerick Mills v. Royal Textile Co.

4 Citing cases

  1. In re Duncan Goodell Co.

    15 F. Supp. 550 (D. Mass. 1936)   Cited 2 times

    The powers of an ordinary business corporation do not include, under this rule, the power to guarantee the obligations of another corporation, unless it can be shown that such a power is fairly incidental or auxiliary to the main business of the corporation and is necessary or expedient in the protection, care, and management of its property. Davis v. Old Colony Railroad Co., 131 Mass. 258, 41 Am.Rep. 221; Limerick Mills v. Royal Textile Co., 288 Mass. 479, 193 N.E. 9; Wm. Filene's Sons Co. v. Gilchrist Co. (C.C.A.) 284 F. 664. In Massachusetts, as elsewhere, however, a business corporation has power to guarantee the obligations of a subsidiary, because such a guarantee may be necessary in order to protect the interest of the corporation in the subsidiary.

  2. In re Waterside Const. Co., Inc.

    116 B.R. 9 (Bankr. D. Mass. 1990)   Cited 1 times

    Ordinary business corporations are without authority to guarantee debts of another, without consideration or benefit to the corporation, and that such a contract cannot be enforced against the corporation. Limerick Mills v. Royal Textile, 288 Mass. 479, 193 N.E. 9 (1934); Bennett v. Corporation Finance Co., Inc., 258 Mass. 306, 154 N.E. 835 (1927); Boston Box Co., Inc. v. Shapiro, 249 Mass. 373, 144 N.E. 233 (1924); Davis v. Old Colony Railroad, 131 Mass. 258 (1898).

  3. Widett v. Pilgrim Trust Co.

    336 Mass. 738 (Mass. 1958)   Cited 7 times

    There was no suggestion of an act entirely without the corporate purposes, as in the guaranty cases. Compare Limerick Mills v. Royal Textile Co. 288 Mass. 479. Pilgrim points out that the corporate purposes of Tremont are not shown. There is no occasion to determine whether there is any presumption to aid the plaintiff in this respect.

  4. Pilgrim Real Estate v. Superintendent of Police

    112 N.E.2d 796 (Mass. 1953)   Cited 9 times

    The scope of its powers and the extent of its liability are limited by the act creating it. Teele v. Rockport Granite Co. 224 Mass. 20, 24-25. Commercial Casualty Ins. Co. v. Daniel Russell Boiler Works, Inc. 258 Mass. 453, 455. AmericanSurety Co. v. 14 Canal Street, Inc. 276 Mass. 119, 125. Limerick Mills v. Royal Textile Co. 288 Mass. 479. A corporation, in the absence of a statute or some restrictions in its charter, may maintain all such actions as may be necessary to protect its rights and to secure compensation for damage to its property, and is liable for injuries caused to another, all upon similar grounds as natural persons and to the same extent. But the present proceeding does not involve rights of this character.