Hanley v. Most

115 P.2d 933, 9 Wash. 2d 429
CourtWashington Supreme Court
DecidedJuly 17, 1941
DocketNo. 28159.
StatusPublished
Cited by27 cases

This text of 115 P.2d 933 (Hanley v. Most) 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
Hanley v. Most, 115 P.2d 933, 9 Wash. 2d 429 (Wash. 1941).

Opinions

Steinert, J. —

Plaintiff, Elizabeth H. Hanley, brought this action seeking (1) to enjoin her husband, defendant E. B. Hanley, Sr., from giving away, or otherwise disposing of, any of the property of their marital *433 community, and to enjoin the other individual defendants, Joe E. Most, E. G. Most, and A. C. Bevan, from inducing defendant husband to commit any of such acts; (2) to set aside two voting trust agreements wherein defendant husband empowered defendant Joe E. Most, as trustee, to receive, hold, and vote certain capital stock of defendant corporations, The Copper River Packing Company and Pleasant Creek Mining Company, which stock was alleged to belong to the marital community; (3) to compel defendants Joe E. Most and A. C. Bevan to account for and return certain personal property alleged to have been unlawfully procured by them from defendant husband; and (4) to secure the appointment of a receiver for the liquid assets of the marital community.

Upon filing her complaint, plaintiff obtained an order temporarily restraining the disposition by defendant E. B. Hanley, Sr., and the acceptance by the other individual defendants, of any of the assets of the marital community, and also temporarily restraining the defendants from further exercising or recognizing any power under the voting trust agreements.

All of the defendants, with the exception of A. C. Bevan, were duly served, and appeared in the action. By stipulation of the parties appearing, the temporary restraining order was continued and converted into a temporary injunction as to defendants E. B. Hanley, Sr., and Joe E. Most, to remain in force until further order of the court.

The cause came on duly for trial before the court, without a jury, and at the conclusion thereof the court filed a memorandum decision in favor of defendants, and, in conformity therewith, entered a decree dismissing the action and dissolving the temporary restraining order and injunction.

Plaintiff appealed from the entire decree, and gave *434 bond to supersede so much of the decree as dissolved certain portions of the injunctive order relating to the disposition, by defendant E. B. Hanley, Sr., and to the acceptance, by defendant Joe E. Most, of any of the assets of the marital community.

After the appeal had been perfected, and shortly before the first argument thereon was had in this court on January 22, 1941, defendant E. B. Hanley, Sr., filed herein, in propria persona, a lengthy instrument entitled, and purporting to be, a “confession on appeal” by him. Thereupon, counsel who had formerly represented all of the defendants except A. C. Bevan withdrew their appearance for E. B. Hanley, Sr., in this court, and other counsel were substituted as his attorneys of record. Joe E. Most, through the attorneys who had formerly represented all the defendants appearing, including both himself and E. B. Hanley, Sr., then moved to strike the confession on appeal, upon two grounds. Although the confession was argued in connection with the merits of the case on appeal, the motion to strike was not formally argued until the regular motion day following the hearing of the case on its merits.

Shortly after E. B. Hanley, Sr., had filed his confession on appeal, appellant, Elizabeth H. Hanley, applied for, and obtained from this court, an order directing respondents Joe E. Most and E. B. Hanley, Sr., to show cause why an order should not be entered commanding them forthwith to dissolve and cancel two contracts for the sale of certain capital stock in the respondent corporations, which contracts had been entered into by and between E. B. Hanley, Sr., and Joe E. Most after this appeal had been taken, and further directing respondent Joe E. Most to show cause why he should not be punished for contempt of this court because of his violation of the injunctive orders *435 issued by the trial court upon the commencement of the action.

In response to the show cause order, E. B. Hanley, Sr., filed an answer, in propria persona, expressing his willingness to cancel those contracts and to execute any documents which this court might direct to that end. At the argument, he was represented by his substituted attorneys of record. Respondent Joe E. Most, by additional counsel, and in response to the show cause order, filed an affidavit alleging that the execution of the two contracts just mentioned was not in violation of the injunctive orders, and that the sale and purchase of the capital stock covered by those contracts were for valid consideration and were in all respects regular. The contempt matter was argued at the same time that argument was had on the motion to strike E. B. Hanley, Sr.’s, confession on appeal, but was assigned for a separate opinion.

Thereafter, this court called for a rehearing of all matters involved in the controversy, and on May 27, 1941, argument was had, before the court sitting En Banc, upon all the various issues which had theretofore been presented. This opinion does not dispose of the contempt proceedings, but is confined to the matter of the appeal taken from the decree of the trial court, and to the matter of the subsequent “confession on appeal” by E. B. Hanley, Sr.

The theory of appellant’s complaint was that, as a result of a conspiracy on the part of respondents Most and defendant Bevan, respondent E. B. Hanley, Sr., by reason of his advanced age, his alleged impaired physical and mental condition brought about by serious illness, and by reason of the absolute trust and confidence reposed by him in respondent Joe E. Most, was inveigled and induced by respondents Most and defendant Bevan to do the following things: (1) To *436 make numerous and sundry gifts of money and other personal property of the marital community to defendant Bevan; and (2) to give and transfer to respondent Joe E. Most, through the device of two voting trust agreements, large blocks of stock of the two corporate defendants, thereby enabling Most to secure complete control over the affairs of the two corporations.

It was alleged that the voting trust agreements were executed secretly, fraudulently, and without the knowledge or consent of appellant or of appellant’s daughter, both of whom were stockholders in one of the two corporations; that such voting trust agreements were never filed in the offices of the respective corporations, but were kept secret until recently discovered by appellant; that respondents had deliberately withheld from appellant all knowledge of the affairs of the corporations; that respondent Joe E. Most, by reason of his influence over E. B. Hanley, Sr., had obtained possession and control over other properties and securities belonging to the marital community, the kind and nature of which were alleged to be unknown to appellant; that, for several years last past, respondent Joe E.

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Bluebook (online)
115 P.2d 933, 9 Wash. 2d 429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanley-v-most-wash-1941.