CORRIGAN v. PEOPLE'S BUILDING, C. ASSOC

A pretended forfeiture of membership falsely set up by a loan and saving corporation, as a reason for not complying with a demand for certain payments alleged by a shareholder of five years standing to be due to him under the terms of his certificate, does not justify such shareholder in rescinding his contract under which he has made monthly payments during the five years, and his only remedy is on the contract; and if the corporation was organized in another State and the certificate provides that any action brought by a shareholder against the corporation shall be brought in that State, there is no remedy here.

HOLMES, C.J.

In these cases there had been no previous trial, or election to sue on the covenant, and it was understood that the plaintiffs might recover the withdrawal or book value of their stock irrespective of the pleadings, if they were entitled to that upon the facts. In other respects the cases are like Daley v. People's Building, Loan Savings Association, ante, 13, and are governed by it.

If we assume that the jury would have been warranted in finding that when the plaintiffs sought to withdraw the defendant made false pretences and set up a forfeiture knowing that it had no right to do so, still in our opinion there was no right to rescind and the only remedy was on the contract under which the plaintiffs had been members of the company for five years.

Judgment for the defendant.