Duquesne Gold Mining Co. v. Glaser

46 Colo. 186
Supreme Court of Colorado·Decided April 15, 1909·No. No. 6029·Published·Cited by 1 cases

Opinion

Mr. Justice Campbell

delivered the opinion of the court:

The defendant corporation was organized under the laws of this state to carry on mining in Gilpin county. Its officers, or some of them, when last known, resided in Pittsburg, Pennsylvania. John A. Snee of that city obtained a judgment against defendant, apparently in some court in the City and County of Denver, and caused an execution to be issued and levied upon its property in Gilpin county and had the property sold thereunder. The time for redemption from the sale by the judgment debtor expired June 15, 1905. In December, 1904, a number of defendant’s stockholders, residing at Pitts-burg, learned of the sale and proceeded at once to call a meeting of as many shareholders as could be reached to devise means to lift the debt. Some progress was made thereat, and a committee appointed to see Snee. He said to this committee, when interviewed, that he would hold the title, if he secured it, for the benefit of contributing shareholders. A second meeting of the stockholders was held, at which plaintiff, one of them, was authorized to represent the stockholders generally, and, if necessary, to redeem defendant’s property from the judgment sale in their behalf. Plaintiff again saw [188] Snee and Jeremiah Miller, who had acquired a half interest in the judgment. Both of them were stockholders of'defendant, and Miller was its vice-president (the president theretofore having died), though Miller’s official position was not then known to plaintiff and the stockholders he represented. He was unable to obtain from the judgment creditor the agreement or declaration which theretofore the latter said he would sign. This was about the 7th of June, 1905, only eight days before defendant’s right of redemption expired. The plaintiff and his fellow stockholders had made diligent effort to ascertain who were the officers of the company, so as to get them to act. in behalf of defendant, but they could not obtain any information on the subject. Miller — who, it was afterwards learned, was vice-president — did not, upon due inquiry by them, make known that fact. Prompt action was necessary, and plaintiff, in order to protect the interests of the company and its members, ■ through attorneys in Colorado, paid to the sheriff the amount necessary to redeem, and obtained the sheriff’s certificate of redemption Certain taxes were due by ’ defendant upon its property, one-half of which were delinquent and the other half due, and the total amount of this tax was paid by the plaintiff for and in behalf of defendant. Plaintiff thereafter brought this action against defendant company to recover for these advances, alleging he had made them at its request. The defendant filed its answer denying that plaintiff made these payments for its use or at its request, and alleged that he did so, if at all, merely as a volunteer. In his replication, plaintiff set forth the ultimate facts hereinbefore recited, proof of which was made by the evidence submitted. Prom the judgment in favor of plaintiff, the defendant has appealed.

[189] The only point argned by appellant is that plaintiff made these payments purely as a volunteer, and not at defendant’s request, and therefore cannot recover. Defendant’s counsel in his brief cites many authorities which it is not necessary to reproduce, because the doctrine is so familiar that a stockholder, as such, is not the representative of a corporation, that the latter can act only through its board of directors or its duly appointed agents; that a stockholder cannot sue or defend in its' behalf, or voluntarily, and without its request, make himself its creditor. Such, however, are not the questions in this case. When directors and officers of a corporation violate their duty to its stockholders and attempt to wreck its property, or wrongfully secure it for their personal profit, or if they neglect their duty, permit its property to be taken away without any effort to save it, or fraudulently refuse to protect its interests, the stockholders, as such, are not remediless. They may protect the interests of the corporation and incidentally their own, provided they first make due efforts to have the corporation, through its governing officers, take the necessary action. And if it appears that the officers refuse to act, or if the 'facts and circumstances are such that it is clear that it would be useless to ask them to do so, the stockholders themselves may, in their own name, protect the corporate interests. They may, in their own name, sue or defend in such behalf.

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Duquesne Gold Mining Co. v. Glaser, 46 Colo. 186 (Colo. 1909).

46 Colo. 186 (Duquesne Gold Mining Co. v. Glaser) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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