Estes v. Bank of Walnut Grove

159 So. 104, 172 Miss. 499, 1935 Miss. LEXIS 107
CourtMississippi Supreme Court
DecidedFebruary 4, 1935
DocketNo. 31396.
StatusPublished
Cited by5 cases

This text of 159 So. 104 (Estes v. Bank of Walnut Grove) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estes v. Bank of Walnut Grove, 159 So. 104, 172 Miss. 499, 1935 Miss. LEXIS 107 (Mich. 1935).

Opinion

McGcwen, J.,

delivered the opinion of the court.

On March 1, 1933, Frank A. Estes, appellant, filed an attachment suit against the Bank of Walnut Grove, a banking corporation domiciled and doing business in Leake county, Mississippi, the Hibernia Bank & Trust Company, a banking corporation domiciled in New Orleans, Louisiana, and, as garnishee defendant, the Tchula Co-operative Store (hereafter called the Tchula Store), a corporation alleged to have been domiciled in Holmes county, Mississippi. It. was alleged that the Tchula Store was indebted to the Hibernia Bank & Trust Company, and that the Bank of Walnut Grove and the Hibernia Bank & Trust Company had been negligent in the collection of a certain check, and that each of them was jointly and severally liable to the appellant, Estes, for the amount of said check. During the month of March, 1933, process by publication in a newspaper was had for the Hibernia Bank & Trust Company, and process was issued for the Tchula Store directed to the sheriff of Holmes county, whose return thereon showed that it could not be found in Holmes county, nor did it have any agent upon whom process could be served therein. *509 Subsequently, in June, 1933, process was served upon Walker Wood, secretary of state, by tbe sheriff of Hinds county, as tbe agent of tbe Tcbula Store.

Tbe Hibernia Bank & Trust Company and tbe Tcbula Store filed separate motions to quash tbe attachment and dismiss tbe bill as to each of them; the bank appearing by its receivers appointed in tbe parish of Orleans, state of Louisiana. They each alleged that they appeared merely for tbe purpose of making their motions to quasb. In May, 1933, tbe Bank of Walnut Grove filed a general demurrer to tbe bill, and thereupon tbe cause was continued. In January, 1934, tbe Bank of Walnut Grove filed its motion to dismiss tbe cause for lack of jurisdiction on tbe ground that it was not domiciled in Holmes' county and never bad been.

Hpon tbe bearing tbe several motions to quasb were all sustained, and tbe bill was dismissed as to each of tbe defendants. Estes appeals here.

Tbe facts of tbe motions not in dispute are that tbe Tcbula Store was granted a charter on November 3,1888, under chapter 38, section 1027 et seq. Bevised Code of 1880. which recites, among other things, tbe following: “Tbe domicile of ;sa’id company 'shall be at Tcbula, Holmes county, Mississippi, or at such other place as tbe majority of tbe stockholders in value may determine.”

The minute book of tbe corporation showed tbe following action by tbe stockholders on January 1, 1916 : “It was resolved by tbe board of directors and stockholders unanimously that tbe annual meeting of tbe stockholders and tbe annual meeting of tbe board of directors shall be changed from tbe present place and time of meeting to meeting at tbe office of tbe company in tbe Planters Bank Building in Clarksdale, Mississippi, on tbe first Monday in January of each year until further order, and this shall be hereafter tbe regular meeting place of said stockholders and board of directors. And said resolution was *510 then and there put to a vote by the president and unanimously adopted and carried.”

Subsequently there appears the following, which seems to have been adopted by all of the stockholders of the corporation :

“The regular annual meeting of the stockholders of this corporation shall be held at the general office of the corporation in the city of Clarksdale, Mississippi, on the first Saturday of February in each year;” thereafter, the following resolution was passed:

“Be it resolved, that the annual meeting of the stockholders and directors shall hereafter be held in the city of Greenville, county of Washington, state of Mississippi, at the office of the company there established, and that the bylaws of the corporation be accordingly amended.”

On February 3, 1930, it was resolved that the stockholders’ meeting be held in the office of the company at Leland, Mississippi, and not at Greenville.

The motions alleged that the Tchula Store had not done any business in Holmes county, Mississippi, for many years, but had been domiciled in Washington county, where it operated, and is now operating, large planting interests, and that it was not subject to attachment in Holmes county; that it had its office in Leland in charge of an officer of the corporation who was its vice-president and manager.

There was introduced in evidence a certificate of the secretary of state that no amendment of the charter had been filed in his office, and that no agent had been named as required by law.

There was no allegation in the bill that the Hibernia Bank & Trust Company was doing business in the state of Mississippi. It is, and was, a nonresident banking corporation. Neither was there an allegation in the bill attempting to lodge jurisdiction in the chancery court of Holmes county, save and except the allegation that *511 the domicile of the Tchula Store was in Holmes- county. If the domicile of the Tchula Store was not in Holmes county, then, as to the Hibernia Bank & Trust Company and the Tchula .Store, the action of the court below in quashing the attachment and dismissing the bill was correct.

It is the substantial contention of the appellant that by his bill the court acquired jurisdiction of all the parties hereto, because the Tchula Store was domiciled in Holmes county; the charter having fixed- that county as its domicile. He asserts that the stockholders were without the power to change its domicile, and, if they had the power, they had not done so.

By chapter 38, section 1028, Rev.- Code 1880, corporations were granted charters, upon complying with certain conditions, when approved by the governor upon the advice of the attorney-general and attested by the secretary of state, but this section does not require a domicile to be named in the charter. Section 1031 thereof defines the powers of the corporations so created, but in no way undertakes to. regulate or control the stockholders as to the fixing of a domicile.

We think, therefore, that the language of this charter relative to its domicile was not prohibited by any statute, and that the grant therein to the stockholders to change its domicile was a matter of internal management which did not require an amendment of the charter.

It will be observed that the domicile was not absolutely fixed by the charter, but was fixed alternatively at Tchula or at such other place as the majority of the stockholders in value should determine. The right granted by the state to change the domicile is the same as if a statute had been passed to that effect by the Legislature. Indeed, in the early days of the legislative history of the state, charters were ' granted by legislative enactment. *512 The grant here under consideration in no wise violates the statutes or Constitution of this state.

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Cite This Page — Counsel Stack

Bluebook (online)
159 So. 104, 172 Miss. 499, 1935 Miss. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estes-v-bank-of-walnut-grove-miss-1935.