Gentry-Futch Co. v. Gentry

106 So. 473, 90 Fla. 595
CourtSupreme Court of Florida
DecidedNovember 23, 1925
StatusPublished
Cited by58 cases

This text of 106 So. 473 (Gentry-Futch Co. v. Gentry) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gentry-Futch Co. v. Gentry, 106 So. 473, 90 Fla. 595 (Fla. 1925).

Opinion

*598 Brown, J.

This was a hill hy the appellant, GentryFutch Company, complainant in the court below, praying an injunction against the appellee, J. IT. Gentry, to restrain him from making any use of certain personal property of the appellant corporation, consisting of certain keys and books of said corporation, and to direct the immediate return of said property to appellant.

The bill alleged that at a stockholders’ meeting, held on September 30, 1922 (which is the only meeting mentioned in the bill), of which lawful notice was given to all the stockholders of said appellant corporation, the appellee was removed and discharged from the office of president and another stockholder, viz., his wife, Mrs. Carrie Gentry, elected to that position, and that he was illegally detaining and holding the said personal property above mentioned, which was of great value to appellant, and the loss or destruction of which would work irreparable damage. The cause or grounds for the removal of Gentry- as president were not alleged. In the absence of the circuit judge from the state, the injunction was granted by a court commissioner, as prayed for.

The defendant, appellee here, answered the bill, stating that he had delivered the said property into the registry of the court, and moved to dissolve the said injunction, denying that lawful notice had been given of said stockholders’ meeting, in that no notice had been published, as required by Section 4087 of the Revised General Statutes of 1920, and also alleging that the by-laws of the corporation required that at least 75 per cent of the stock of said corporation should be represented at any meeting before any business could be transacted thereat, whereas less than that amount was,, represented at the said meeting, to-wit, not over 50 or 51 per cent of the stock. The answer also set up a prayer for affirmative relief, i. e., the appointment of a receiver for the affairs of said corporation, the dissolu *599 tion of the temporary injunction, and that the attempted effort on the part of the company to discharge the defendant be declared void and of no effect.

Shortly after the filing of this answer, the appellant corporation filed its motion' for the dismissal of the suit and a dissolution of the injunction which it had obained, upon the ground that the purpose for which the suit was brought had been accomplished and the subject-matter thereof disposed of.

A few days later, and before any action was taken on this motion, the appellant filed an answer to the affirmative matters set up in the defendant’s answer by way of cross-bill, setting up, among other things, that the corporation was in a prosperous condition and that a receiver was unnecessary. It also alleged that the services of Gentry as president were not worth $500 per month; that he had admitted it; and that the company could employ a man to perform such work as he had been doing for one-fourth of that amount.

The defendant Gentry then filed an amended answer, alleging more in detail the alleged reasons for the prayer for the appointment of a receiver; also praying for a dissolution of the corporation; and further alleging that he had never been legally removed as president of the corporation and was still its lawful president and entitled to compensation of $500 per month, which had been fixed by the corporation before this litigation began, and praying that the two supposed meetings of the stockholders be declared null and void, the one of September 30, for reasons already stated, and the meeting of October 18, (a meeting held after the filing of the bill,) because the published notice was not signed by the proper officers, and also because the proxies of married women stockholders were not signed or joined in by their respective husbands, and that the defendant be awarded the salary due to him as *600 such president, at $500 per month, from the time of such attempted removal. No issue was tendered as to the sufficiency of the cause for removal; so the sufficiency or truthfulness of the charges against Gentry, as contained in the minutes afterwards introduced in evidence, was not put in issue; only the lawfulness of the corporate action was attacked.

It is alleged in the amended answer that, as to the meeting of October 18, although the notice was published,, it was not signed by proper officers, being signed only by “L. M. Futch, Secretary-Treasurer of the Gentry-Futch Co., “whereas it should have been signed by the president or vice-president, and that no independent action Avas taken at said meeting removing the defendant or electing a president in his place, but it was simply attempted to ratify the acts and doings of the former supposed meeting. It also appears that appellee was not present at either of said meetings, but receipt- of actual notice was not denied.

The final decree, rendered July 5, 1923, (1) denied the prayer of the defendant’s cross-bill for the appointment of a receiver and the dissolution of the corporation; (2) granted complainants motion to dissolve the temporary injunction granted, as prayed for by it in its original bill; (3) adjudged that the two supposed meetings of the stockholders, held on September 30 and October 18, were null, A^oid and of no effect, and that the attempt to discharge Gentry as president was illegal and void; (4) held that the said J. TI. Gentry, Avas then, and had been since the institution of the suit, the president and a director of the said corporation; (5) that the said Gentry, as such president, was entitled to receive and recover at the hands of the Gentry-Futch Company, the full amount of his salary at $500 per month from October 1, 1922, to the date of the decree; (6) that the said J. H. Gentxy be restored to his said offices of president and director of said Gentry-Futch *601 Company; and (7) that the complainant be decreed to pay all costs in the ease.

The appellant filed a petition for rehearing, upon which, however, no action appears to have been taken.

Prom this decree the complainant corporation took this appeal.

Since the appellee has filed no cross-assignments of error, that portion of the decree which denied reeeivership aud dissolution, as prayed for in the answer and cross-bill, is not reviewed.

The appellant contends that,- inasmuch as the decree granted complainant’s motion to dissolve the injunction prayed for in its original bill, and denied the prayer of the defendant’s cross-bill for the appointment of a receiver and the dissolution of the corporation, all the grounds of equitable jurisdiction, raised by either the original bill or answer and cross-bill, were thus disposed of, and that in going further and adjudicating the right of said Gentry to the office of president and his right to recover the salary as such, as prayed in the cross-bill, and restoring him to his said offices of president and director of said corporation, the court was granting relief of a purely legal nature, not authorized under the rules applicable in such cases. Appellant also contends that the court below was not warranted by the evidence in holding the corporate meeting of September 30 and October 18 null and void.

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Bluebook (online)
106 So. 473, 90 Fla. 595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gentry-futch-co-v-gentry-fla-1925.