Baird v. Tyler

39 S.E.2d 642, 185 Va. 601, 1946 Va. LEXIS 233
CourtSupreme Court of Virginia
DecidedOctober 14, 1946
DocketRecord No. 3025
StatusPublished
Cited by4 cases

This text of 39 S.E.2d 642 (Baird v. Tyler) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baird v. Tyler, 39 S.E.2d 642, 185 Va. 601, 1946 Va. LEXIS 233 (Va. 1946).

Opinion

Browning, J.,

delivered the opinion of the court.

In 1937, at a foreclosure sale, Goldsborough Serpell, Edward R. Baird and Major S. Heth Tyler became the purchasers of the White Marsh Fowling Club properties, consisting of four islands, a marsh, a boat house and a club house, lying in Princess Anne county, adjacent to Back Bay. These gentlemen were friends and prominent citizens of the city of Norfolk. Each of them advanced the sum of 11,338.36, representing one-third of the sale price and costs.

They formed a non-stock corporation under the name of White Marsh Club, taking title to the properties in its name and receiving from it notes for the amount of money they had advanced. The record is silent as to whether these notes are alive and existing obligations of the corporation. The three gentlemen referred to were the directors and officers of the club.

Mr. Baird died on December 11, 1940, leaving a will which, however, made no specific mention of his interest in the corporation. His interest had become the property of his son, Edward R. Baird, Jr., the appellant, by gift inter vivos, the validity of which is conceded.

Major Tyler died on September 5, 1943, and, by the terms of his will, all of his property was devised to his wife, Mrs. Nelle S. Tyler, who survived him.

In October, 1944, Mrs. Tyler and Mr. Serpell instituted a chancery suit in the court below, alleging, among other things, that with the death of Mr. Baird, Sr., and Major Tyler the purpose for which the club was formed had failed. The prayer was that the corporation be dissolved in accordance with Code, sec. 3880, and that its assets be sold and the proceeds distributed among the persons entitled thereto.

[604]*604Two of the defendants, Mrs. Katherine B. Segar and Mrs. Virginia B. Tayloe, who were residuary legatees under the will of Mr. Baird, Sr., answered, disclaiming any interest in the corporation, asserting that their father, in his lifetime, had given his interest therein to their brother, Edward R. Baird, Jr., a fact of which they said Major Tyler and Mr. Serpell' were well aware and of which they had approved.

The defendant, Edward R. Baird, Jr., demurred to the bill on the ground, among others, that Mrs. Tyler, one of the complainants, was not a member of the club corporation and therefore had no right to maintain a suit for its dissolution.

A further ground of the demurrer was that the death of Major Tyler did not defeat the purposes of the corporation because the two surviving members, Mr. Serpell and the demurrant, might elect a member to succeed Major Tyler and, thus, that the three members might carry on the purposes for which the corporation was formed.

Subsequently, Edward R. Baird, Jr., filed his answer, wherein he again denied the allegations of the bill that the corporate purposes of the club had failed. He alleged, quite to the contrary, the substantial increase in the number of waterfowl, the lengthening of the shooting season, and the preparations and plans for the approaching season made by the persons interested just a short time before the institution of the present suit.

The answer further alleged that the moving cause of the suit was the occurrence of a personal difference between J. Hoge Tyler, III, counsel for the complainants, and the respondent, Edward R. Baird, Jr. It was also alleged that Mr. Serpell and Mrs. Tyler had repeatedly refused to name a price for their interests, and that, “if anything,” the property should be divided in kind among the interested persons.

These pertinent facts were stipulated between the parties. It was agreed that, if Mrs. Tyler were present and testifying, she would testify that she was not interested in shooting waterfowl and that she desired the dissolution of the club. Further, it was agreed that, if Mr. Serpell were present [605]*605and testifying, he would testify that, due to disputes with Mr. Baird, Jr., he (Serpell) did not desire to shoot waterfowl with him. Further, it was agreed that, if Mr. Baird, Jr., were present and testifying, he would testify to the correctness of “all of the facts, assertions, conclusions and admissions contained in his original and amended answers.”

After a hearing on the pleadings and facts thus stipulated, the. trial court entered a decree overruling the demurrer, ordering the dissolution of the club corporation because of the failure of its corporate purposes, and appointing commissioners to sell the assets of the corporation, these to be distributed as the court might thereafter direct. From this decree the present appeal has been taken.

The appellant makes two main contentions. First, he says the lower court erred in holding that the purposes for which the corporation had been formed had failed and for that reason its dissolution should be decreed under Code, sec. 3880.

We agree with the holding of the lower court that the record clearly demonstrates such a failure of purpose as to warrant a dissolution of the club corporation.

As has been said, the original members of the club were Messrs. Baird, Sr., and Serpell, and Major Tyler. After Mr. Baird, Jr., had succeeded to his father’s interest in the corporation, the three members operated and conducted the club harmoniously until shortly after the death of Major Tyler. Thereafter, for reasons which need not be detailed, the relations between the surviving members, Messrs. Baird, Jr., and Serpell, and those between Mr. Baird and Mrs. Tyler became strained. It is clear both from the record and the briefs that thereafter it was impossible for the club to have been carried on harmoniously by the surviving members. Neither faction would sell out or give way to the other, and a dissolution of the corporation and the distribution of its assets among those entitled thereto became inevitable.

The second principal contention of the appellant, Mr. Baird, Jr., is that upon the death of Major Tyler his interest in the club corporation terminated; that Mrs. Tyler, as the [606]*606devisee under her husband’s will, acquired no interest in the corporation; and that she is not entitled, upon a dissolution of the corporation, to share in its assets, which, he says, must be divided between Mr. Serpell and himself, as the two surviving members.

As a corollary to this contention, the appellant, by his demurrer to the bill, challenged the right of Mrs. Tyler to join as a party plaintiff with Mr. Serpell in the suit. The action of the trial court in not sustaining the demurrer and in not dismissing the bill for this reason is assigned as error.

Code, sec. 3880, provides for the dissolution of a corporation of this character in a suit in equity “brought by a creditor or by one-fifth in number of the active members of such corporation.” Since Mrs. Tyler, so far as the record shows, was neither a creditor nor an active member of the corporation, she was not properly a party plaintiff, and upon a motion to abate the suit as to her, she should, and no doubt would, have been dropped as a party plaintiff and made a party defendant. Code, sec. 6102; Riverside Cotton Mills v. Lanier, 102 Va. 148, 159, 45 S. E. 875. But in this State misjoinder cannot be taken advantage of by demurrer. Virginia Hot Springs Co. v. Hoover, 143 Va. 460, 464, 130 S. E. 408.

Inasmuch as Mr. Serpell met the statutory requirement of a party plaintiff, the suit was properly instituted, and the demurrer was properly overruled.

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Bluebook (online)
39 S.E.2d 642, 185 Va. 601, 1946 Va. LEXIS 233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baird-v-tyler-va-1946.