Gordon's Ex'ors v. R. F. & P. R. R.

81 Va. 621, 1886 Va. LEXIS 129
CourtSupreme Court of Virginia
DecidedApril 8, 1886
StatusPublished
Cited by2 cases

This text of 81 Va. 621 (Gordon's Ex'ors v. R. F. & P. R. R.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon's Ex'ors v. R. F. & P. R. R., 81 Va. 621, 1886 Va. LEXIS 129 (Va. 1886).

Opinion

Fauntleroy, J.,

delivered the opinion of the court.

These causes were decided by this court on appeal from the circuit court of the city of Richmond, April 17, 1884, and this appeal is a sequel thereto, complaining of two decrees entered in these suits, by the said circuit court of the city of Richmond—one June 28, 1884, and the other July 9, 1885. The decree of this court 78 Va. (3 Hansbrough, page 519), was sent down and certified to the said circuit court of the city of Richmond May 20, 1884, together with a certified copy of its opinion, which was made a part of its decree.

[623]*623The opinion, delivered by Judge Hinton, elaborately stated the whole case (the two cases being heard together and treated as one); and, after reversing the court below, entered the following order:

“And this court, proceeding to make such decree as the said circuit court ought to have rendered, doth adjudge, order and decree that the respective holders of all the guaranteed stock of the defendant company—the Richmond, Fredericksburg and Potomac Railroad Company—are entitled to receive from said company dividend-obligations of said company, of the form and character authorized by the resolutions of the stockholders of said company of November 16, 1881, and by the resolutions of the board of directors of the 8th of December, 1881, which have been issued to the holders of the common stock of said company; and that said dividend-obligations shall be issued to the holders of the guaranteed stock aforesaid, at the same rate at which they have been issued to the holders of the common stock—namely, at the rate of seventy dollars of such dividend-obligations for each and every share of guaranteed stock; and that, on the dividend-obligations so issued, there shall be paid the dividends which have been heretofore declared on similar dividend-obligations issued to common stockholders, excepting that the guaranteed seven per cent, stock shall not receive the dividend declared on the dividend-obligations as of January 1, 1882; and, as to the dividend which was paid on July 1, 1882, the same shall be abated by ten cents per share, and that the guaranteed six per cent, stock shall receive of said dividend of January 1, 1882, on the dividend-obligations only the sum of forty cents per share. And it is further ordered that these causes be remanded to the circuit court of the city of Richmond for proper proceedings to carry out this decree, and also for such proceedings as may appear proper in reference to the prayer of the plaintiffs, [624]*624for the allowance of counsel fees, against guaranteed stockholders not already represented by counsel in these causes.”

A sketch of a decree (marked UB”) was prepared by plaintiffs’ counsel designed to carry out the decision of this court, and was submitted to the circuit court, which, after argument and consideration, was rejected; and the said court rendered a yerbal decision to the effect that only such guaranteed stockholders of the company as had been plaintiffs on the record, or represented by counsel (and the latter only to the extent of such stock as hád been represented), were entitled to enjoy any benefit in these suits, under the opinion and decree of this court; and that no stockholder, not belonging to one or the other of these classes, should be permitted to file any petition for the purpose of becoming parties, or receiving the obligations and money-dividends directed by said decree; and it entered a decree rejecting the draft “B,” and ordering the defendant company to issue obligations and pay back dividends only to the two classes indicated, and removing the suits from its docket.

Against this proceeding all the plaintiffs protested, not only orally, but they tendered their petitions, praying for a reference to ascertain a proper allowance for counsel fees, and proper contributions to be assessed against the other stockholders who should be entitled to come in and participate in the benefit of the decree of this court. The plaintiffs’ counsel, who were entitled on the merits and by the express terms of the decree of this court to reasonable compensation from stockholders, who had no special counsel, but were benefited by their skill and labor (the decree having declared that all of them should be entitled to receive the obligations and money-dividends), protested also against the decision of the circuit court, and tendered their joint petition, showing the services rendered, and the benefits gained, and praying for proper proceedings to carry out [625]*625the decree of this court in reference to the ascertainment and allowance of counsel fees.

But the court rejected all these petitions; and only permitted petitions to be filed by such stockholders as had been represented by counsel; and, against the protests of the plaintiffs, ordered that, “as nothing further in the interest of any of the parties in these causes remained to be done,” the same should be removed from the docket, with leave to any party interested in its decree to move to re-instate them for the purpose of enforcing it, and with leave to the petitioners, who had been represented by counsel, to re-instate them for the purpose of asserting their rights.

On the 20th of October, 1884, the defendant company having failed and refused to comply with the requirements of the decree of June 28, 1884, by issuing the obligations evpn to the limited class to which the said decree was restricted, a rule was issued against the said company to show cause, &c., in which it is recited that “ on motion of the complainants in these causes the same are re-instated on the docket”—without more and without saying that they were re-instated by leave reserved in the decree of June 28, 1884, or for any special purpose; and, in point of fact, they seem never to have been removed from the docket; but, if they had ever been, to have been re-instated for all intents and purposes.

The company answered the rule, stating, inter alia, that notice had been served on it of a bill having been filed in the United States Circuit Court, at Richmond, Virginia, by the Messrs. Short, trustees, to restrain it from issuing the obligations ordered by the decree of June 28,1884, and that an order had been made by that court for hearing the motion for injunction on November 18, 1884, and that it had granted, on the 8th of November, at Norfolk, Virginia, a temporary injunction, which, when served on it, would be filed, and praying that the [626]*626decree of June 28, 1884, should not be enforced until the proceedings in the Federal court should be determined. The order of the Federal court for a hearing upon Short’s motion for an injunction, has never been proceeded with, so far as the record discloses; nor have any of the stockholders, either guaranteed or common, been made parties to this bill; nor has any action been taken in the matter, except that the defendant company issued on February 10, 1885, a circular, urgently inviting the non-resident holders of guaranteed stock to become voluntary parties to the suit of the Messrs. Short, in the Federal court, and offering to pay their lawyer’s fees out of its own funds—and adding—“it is now deemed of the highest importance to the company, and all of its stockholders, that the matter should forever be quieted by the decree of a court of competent jurisdiction, which shall bind every one in interest.”

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Bluebook (online)
81 Va. 621, 1886 Va. LEXIS 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordons-exors-v-r-f-p-r-r-va-1886.