Brown v. Kildea

108 P. 452, 58 Wash. 184, 1910 Wash. LEXIS 914
CourtWashington Supreme Court
DecidedApril 29, 1910
DocketNo. 8304
StatusPublished
Cited by6 cases

This text of 108 P. 452 (Brown v. Kildea) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Kildea, 108 P. 452, 58 Wash. 184, 1910 Wash. LEXIS 914 (Wash. 1910).

Opinion

Gose, J.

This action was brought by the plaintiff as a stockholder of the Montana Scotch Bonnet Copper and Gold Mining Company, a corporation, against the defendants, its officers and trustees, for the recovery of a penalty, and is based on §§ 3701 and 3702, Rem. & Bal. Code, which are as follows:

“§3701. It shall be the duty of the trustees of every company incorporated under this chapter to keep a book containing the names of all persons, alphabetically arranged, who are or shall be stockholders of the corporation, and showing the number of shares of stock held by them respectively, and the time when they became the owners of such shares, which book, during the usual business hours of the day, on every day excepting Sunday and legal holidays, shall be open for the inspection of stockholders and creditors of the company, at the office or principal place of business of the company; and any stockholder or creditor of the company shall have the right to make extracts from such book, or to demand and receive from the clerk or other officer having the charge of such book a certified copy of any entry therein, or to demand and receive from any clerk or officer a certified copy of any paper placed on file in the office of the company; and such book and certified copy shall be presumptive evidence of the fact therein stated in any action or proceeding against the company or any one or more of the stockholders.”
“§ 3702. If at any time the clerk or other officer having charge of such book shall make any false entry, or neglect [186]*186to make any proper entry therein, or having the charge of any papers of the company shall refuse or neglect to exhibit the same, or allow the same to be inspected or extracts to be taken therefrom, or to give a certified copy of any entry, as provided in the preceding section, he shall be deemed guilty of a misdemeanor, and shall forfeit and pay to the injured party a penalty of not less than one hundred dollars nor more than one thousand dollars, and all damages resulting therefrom, to be recovered in any action of debt in any court having competent jurisdiction; and for neglecting to keep such book for inspection as aforesaid, the corporation shall forfeit to the people the sum of one hundred dollars for every day it shall so neglect, to be sued for and recovered in the name of the people in the superior court of the county in which the principal place of business of the corporation is located.”

The official dereliction charged is that the defendants, having charge of “the books and papers” of the corporation, pursuant to “a concerted and agreed course of action,” refused the repeated demands of the plaintiff that he be allowed to inspect them. The prayer is for a judgment for $1,000, the maximum penalty under the statute, and for costs. A general demurrer having been overruled, the defendants answered jointly, admitting that they are the officers and trustees of the corporation, and joining issue on the other averments of the complaint. The case was tried to a jury, which returned a verdict for the plaintiff in the sum of $850. From a judgment entered on the verdict, the defendants have appealed.

The appellants objected to the introduction of any testimony, on the ground that the complaint does not state facts sufficient to constitute a cause of action, and at the close of the respondent’s evidence, moved the court to withdraw the case from the jury. After verdict the appellants moved for a judgment notwithstanding the verdict.

The appellants contend that the statute is a penal one and should be strictly construed, whilst the respondent asserts that, in so far as it affects the case at bar, it is remedial [187]*187and should receive a liberal interpretation. We think the appellants have the correct view of the statute. Under the statute the officer who violates its provisions is deemed guilty of a misdemeanor, the penalty to the state being imprisonment in the county jail not more than one year or by fine not exceeding $500, or by both such fine and imprisonment (Rem. & Bal. Code, § 2984) ; and to the “injured party a .penalty of” not less than $100 nor more than $1,000, and all damages which he sustains. We agree with the learned trial court that a statute may be penal in part and remedial in part. The 'remedial part of this statute, however, is the provision for the recovery of actual damages. The penalty is not imposed as compensation, but as a part of the punishment of the offending officer. A statute which subjects one person to the payment of a sum of money to another, without reference to any actual injury and without requiring him either to allege or prove an actual injury, is a penal statute. Steam-Engine Co. v. Hubbard, 101 U. S. 188; Derrickson v. Smith, 27 N. J. L. 166; Southern Building & Loan Ass’n v. McCants, 120 Ala. 616, 25 South. 8; Casey v. St. Louis Transit Co., 116 Mo. App. 235, 91 S. W. 419; Brown v. Clow, 158 Ind. 403, 62 N. E. 1006; Hub Const. Co. v. New England Breeders’ Club, 74 N. H. 282, 67 Atl. 574.

The respondent, among other cases, cites: Huntington v. Attrill, 146 U. S. 657; Aylsworth v. Curtis, 19 R. I. 517, 34 Atl. 1109, 61 Am. St. 785, 33 L. R. A. 110; Reed v. Inhabitants of Northfield, 13 Pick. 94, 23 Am. Dec. 662; Mansfield v. Ward, 16 Me. 433. We do not think these cases support the respondent’s contention. In Huntington v. Attrill, a judgment was obtained in the state of New York against a director in a New York corporation, for the amount of the debts of the corporation, for making oath to a certificate which he knew to be false. In a suit upon the judgment in the state of Maryland, the court of that state refused to enforce it, because the statute imposing the liabil[188]*188ity was penal in its nature. The supreme court held that it v as not penal within the maxim of the international law that “the courts of no country execute the penal laws of another,” and that the full faith and credit clause of the Federal constitution required the courts of Maryland to give it effect. It was said, however: “As the statute imposes a burdensome liability on the officers for their wrongful act, it may well- be considered penal in the sense that it should be strictly construed.” In Aylsworth v. Curtis, in discussing the distinction between penal and remedial statutes, it was said that, where an action is founded entirely upon a statute having for its object the recovery of a penalty or a forfeiture, the statute is clearly penal; but that, where it gives the injured party enhanced or double damages for a wrong suffered or a right violated, it is remedial. In Reed v. Inhabitants of Northfield the court, speaking through Mr. Chief Justice Shaw, said:

“And where the statute gives a penalty, and the thing sued for is pursued as a penalty, although the right to sue is given only to the party grieved, and even though the whole penalty when recovered shall go to the party grieved, still the same rule may apply, because the form of proceeding is still for a penal sum, and the ostensible and real object of the suit, in form at least, is punishment”;

but that a law which gives enhanced damages is remedial. In Mansfield v. Ward,

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Cite This Page — Counsel Stack

Bluebook (online)
108 P. 452, 58 Wash. 184, 1910 Wash. LEXIS 914, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-kildea-wash-1910.