American Railway-Frog Co. v. Haven

101 Mass. 398
CourtMassachusetts Supreme Judicial Court
DecidedMarch 15, 1869
StatusPublished
Cited by37 cases

This text of 101 Mass. 398 (American Railway-Frog Co. v. Haven) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Railway-Frog Co. v. Haven, 101 Mass. 398 (Mass. 1869).

Opinion

Ames, J.

This petition raises three questions: 1st. Were Otto Cuntz and the five others, whose names are joined with his, duly elected at the annual meeting of the company to the offices which are claimed for them respectively? 2d. If they [402]*402were so elected, will mandamus lie for the purpose of compelling these respondents, who claim the same offices, to give up the books and papers of the company in their possession? 3d. If mandamus will lie, are the circumstances of the case of such a character that the court, in the exercise of a sound judicial discretion, ought to direct the issue of that writ.

The case finds that the capital stock was divided into two thousand shares, all of which were properly issued to the original stockholders; and that sometime afterwards four hundred of these shares were transferred by some of the stockholders to Aaron N. Clark “ to hold for the benefit of the corporation.” If these transfers had been made directly to the corporation, without the intervention of a trustee, it would hardly be contended that it would thereby become entitled to vote at a meeting of stockholders. A corporation cannot literally be one of its own stockholders in the full sense of that term. Such a transfer might not operate as a mere surrender or cancellation of stock, unless so intended. It would not diminish the amount of the capital, nor necessarily reduce the number of shares. The corporation might perhaps receive such a transfer, and hold the stock so conveyed to it, for the purpose of reissue to new subscribers or purchasers. By the terms of the transfer, Clark holds “ for the benefit of the corporation,” and of course subject to its order. This is the extent of his trust. Nothing in the nature of it makes it necessary that he should vote, as the holder of those shares. There is no apparent reason why he, not being beneficially or practically the owner of them, should be endowed with the privilege of controlling four hundred votes according to his own judgment or pleasure, especially when it is taken into consideration that the corporation for which he holds them has no right of voting in any event. It is easy to see that any such privilege would not only be unreasonable and unfair, but might lead to great abuses. The position of these shares, in our judgment, is the same, to all intents and purposes, so far as the right of voting upon them is concerned, as if they were held directly by the corporation itself; and, until they are sold and transferred by its authority, the right of voting upon them is suspended. [403]*403Ex parte Holmes, 5 Cowen, 426. Ex parte Willcocks, 7 Cowen, 402. It follows then, that, at the annual meeting in question, the votes on these four hundred shares ought not to have been received or counted; that the whole number of competent and legal votes was fifteen hundred and thirty-three, and no more; that Cuntz and his five associates received a clear majority of these votes; and that they were duly elected to the offices claimed for them respectively in the petition.

We then come to the second question, namely, Whether this is one of the cases in which the court has the power to issue the writ of peremptory mandamus. We must consider this petition as the petition of the corporation. The respondents are not its officers, but are mere intruders and wrongdoers, their term of office having expired. In the case of a public office or corporation, it is not denied that this writ might issue if the petitioner’s title were first made out. It is well settled that it can be granted, for instance, to compel a town clerk, or a clerk of a public corporation, whose office has expired, tó deliver over to his successor the common seal, books, papers and records of the corporation, which had belonged to his custody. Some of the cases go so far as to say, that indeed it lies to any person who happens to have the books of a corporation in his possession and refuses to deliver them up. In fact it is the peculiar and appropriate remedy in such a case.” Rex v. Wildman, 2 Stra. 879. 2 Kyd on Corporations, 301. Angell & Ames on Corporations, (6th ed.) § 707 and cases cited. St. Luke’s Church v. Slack, 7 Cush. 226. It is described by Lord Mansfield as a very beneficial writ, which may be issued by the court where there is no other specific remedy. The King v. Commissioners of Land Tax, 1 T. R. 148. It will not be granted where the applicant has another adequate, specific, legal remedy. Rex v. Barker, 3 Burr. 1267. The King v. Bishop of Chester, 1 T. R. 404. 2 Kyd on Corporations, 297. In re White River Bank, 23 Verm. 478. But the remedy, in order to be a bar to the issuing of the writ, must not only be adequate but also specific; and damages recoverable for the violation of the right are not such specific remedy. In the case at bar, it is difficult to see in what way the petitioners [404]*404can obtain such adequate and specific relief, if their petition should be refused. The same four hundred illegal votes that have created the difficulty may perhaps be employed to render it permanent.

The respondents insist, however, that, inasmuch as they are actually in possession of the offices in question, under a claim of right, and exercising the functions annexed to them, the only mode of controverting their title is by a writ of quo warranta. The fact that the offices are de facto filled and occupied by rival claimants is by no means decisive, and perhaps not very material, upon this point. Borough of Bossiny, 2 Stra. 1003. Borough of Aberystwith, Ib. 1157. Corporation of Scarborough, Ib. 1180. The King v. Bedford Level Co. 6 East, 356. It has been so decided in the case of conflicting claims to the office of county commissioner. Strong, petitioner, 20 Pick. 484. Also in the case of members of a school committee. Conlin v. Aldrich, 98 Mass. 557. It may be, that, if a petition for mandamus were literally in the name and for the benefit of a claimant of an office against an actual incumbent, the parties would be left to a quo warranta; but however that may be, the case of St. Luke’s Church v. Slack, 7 Cush. 226, seems decisive upon the point that, in the case of a public corporation, a mandamus may issue on its petition against persons claiming to hold its offices.

Upon the third of the questions raised by the case at bar, it is claimed that, as the writ of mandamus is not a writ of right, out is only to be granted at the discretion of the court, in view of all the circumstances, the present is not a proper case for the exercise of that discretion. The respondents insist that, even npon the assumption that the object of the petition is to compel them to do what they are bound in duty to do, and what the petitioners have a clear and manifest right to have done, and upon the assumption also that the petitioners have no adequate specific remedy except what the writ would give them, yet the writ is only to be issued for public purposes, and to compel the performance of public duties, and for that reason ought not to be granted on the present occasion. This objection is the only [405]*405one that has given us any considerable embarrassment.

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Bluebook (online)
101 Mass. 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-railway-frog-co-v-haven-mass-1869.