Barnett v. Ground

263 S.W. 836, 304 Mo. 593, 1924 Mo. LEXIS 537
CourtSupreme Court of Missouri
DecidedJuly 5, 1924
StatusPublished
Cited by10 cases

This text of 263 S.W. 836 (Barnett v. Ground) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barnett v. Ground, 263 S.W. 836, 304 Mo. 593, 1924 Mo. LEXIS 537 (Mo. 1924).

Opinion

*596 WHITE, J.

The ,plaintiff in this suit complains of certain wrongs done him by the defendants, and asked various kinds of relief. A demurrer to his amended petition was sustained by the trial court. He declined to plead further, and judgment was rendered against him, from which judgment he appealed.

Plaintiff’s amended petition alleges the following:

“Plaitiff brings this suit on behalf of himself, and such other stockholders of the Porto Rico Mining Com *597 pany, as may be similarly situated, and who may wish to join herein.
“Plaintiff avers that the Porto Eico Mining Company is a corporation, organized under the laws of the State of Missouri, on the-day of the month of-, 19 — , with a specified capital stock of $15,000; that the Barnett Mining Company is a corporation organized under the laws of Missouri, on'the-day of ——, 1914, with a specified capital of $5,000.
“That, from and after the organization of said Porto Eico Mining Company, its stockholders were J. "W. Ground, G. A. Barnett, E. G. Bigelow, D. I. Parsons, B. E. Clark, E. C. Borden, W. IT. Gunther, and E. McCoy, and this plaintiff, J. J. Barnett, and that, since the organization of said Porto Eico Mining Company, the plaintiff has been, and now is, the owner and holder of one-fifth of the capital stock of the Portó Eico Mining Company, and entitled, as such stockholder, to all the rights and benefits of one-fifth of the profits of said Porto Eico Mining Company; that, at all times since the organization of the Porto. Eico Mining Company, the defendants, J. W. Ground, D. I. Parsons, E. G. Bigelow, G. A. Barnett and Dr. E. McCoy have been its board of directors.”

The petition then sets out a description of the real estate covered by a mining lease of the Porto Eico Mining Company, describes the mills erected on the land prior to September, 1914, and alleges that the Porto Eico Mining Compan}r had discovered valuable ore deposits on the land; that the company was organized by its incorporators for the purpose of carrying on mining operations. The petition then proceeds as follows:

‘ ‘ That on the-day of-, 1914, the said J. W. Ground, G. A. Barnett, E. G. Bigelow, D. I. Parsons, B. E. Clark, and E. C. Borden, being stockholders, officers, and directors, of the said Porto Eico Mining Company, conspired and confederated together to obtain the benefits to themselves, and to the exclusion of the minor *598 ity stockholders of the said Porto Rico Mining Company, all the large benefit^, and profits from mining and carrying on, mining operations on said land.
“That in pursuance of said conspiracy to cheat and defraud the minority stockholders, among whom was this plaintiff, owning and holding a one-fifth of the stock of the said corporation, the said defendants .organized, or caused to be organized, the defendant corporation, the Barnett Mining Company, with a specified capital stock of $5000, and caused the defendants, J. W. Ground, G. A. Barnett and E. G. Bigelow, to be constituted and installed as the board of directors of said corporation, and having thus organized said Barnett Mining Company, the said defendants, still pursuing their unlawful purpose to deprive the minority stockholders of said Porto Rico Mining Company, (and particularly this plaintiff), of the benefits of the mining operations, by said Porto Rico Mining Company, and acting in the name of the said Porto Rico Mining Company, as the board of directors, officers and agents thereof, and at the same time acting for themselves, under the náme of the Barnett Mining Company, and being thus the contractors and contractees, grantors and grantees; in form, entered into a contract in writing with themselves, acting as the Porto Rico Mining Company, and themselves acting as the Barnett Mining Company, whereby all of said leasehold property, and mining mill and machinery, was delivered into possession of them, the said J. W. Ground, G. A. Barnett, E. G. Bigelow, D. I. Parsons, B. R. Clark, and E. C. Borden, under the name of the said Barnett Mining Company, and having thus agreed with themselves to take the said property, the said defendant proceeded at once to, and did in fact, take possession of all the property of the Porto Rico Mining Company, and proclaimed themselves the owner of all the mining rights of said Porto Rico Mining Company, under the name of Barnett Mining Company, and excluded the plaintiff and other minority stockholders from the same.”

*599 The petition then alleges that one of the directors of the Porto Rico Mining’ Company, Dr. E. McCoy, was not served with a notice of the meetings mentioned above, and proceeds:

“Plaintiff .avers that said pretended contract was, and is contrary to public policy, and illegal, and void, and that the same furnished no authority to the said defendants to take possession and mine the property of the Porto Rico Mining Company. Plaintiff avers that, upon the execution of said illegal contract, the defendants aforesaid, under the name of the said Barnett Mining Company, and pursuant to said illegal agreement, took possession of all of the mining property of the Porto Rico Mining Company, and mined and sold the ores therefrom, and made large profits from such mining, all of which was paid to the said defendants, J. W. Ground, G. A. Barnett, E. G. Bigelow, D. L Parsons, B. R. Clark and E. C. Borden, and from which benefits the plaintiff, and the said other minority stockholders were excluded.
“That the said profits belong to the Porto Rico Miping Company, and to the stockholders thereof, but were distributed by the aforesaid defendants to themselves, as dividends on the stock of the said Barnett Mining Company.
“This plaintiff is unable to state the total amount of said profits, but is informed and believes that the said defendants have reported and declared dividends out of. the profits of said mine to the amount of $117,752.01, and this plaintiff believes that said dividends and profits amount to $147,752.01, and on his information and belief states that the profits of said mining operations, in which this plaintiff is entitled to participate, as the holder of one-fifth of the stock of the Porto Rico Mining Company, is $147,752.01.
“Plaintiff avers that on the-day of March, 1916, the said defendants, acting in the name of the said Porto Rico Mining Company, and in the name of the said Bar *600 nett Mining Company, sold all of the property and mining leases aforesaid, for the net sum, to them, of $157,500.
“Plaintiff avers, that, while the defendant, J. W.

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Bluebook (online)
263 S.W. 836, 304 Mo. 593, 1924 Mo. LEXIS 537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barnett-v-ground-mo-1924.