Hooper v. Rhea

3 Shan. Cas. 145
Tennessee Supreme Court·Decided September 15, 1885·Published·Cited by 3 cases

Opinions

Freeman, J.,

delivered the opinion of the court:

The bill in this case is filed by complainants, as citizens and taxpayers of tbe town of Newport, Oocke county, against defendants, to use tbe 'language of tbe bill, “as citizens of said town and proposed incorporators of Newport,” also tbe sheriff of Oocke county, together with tbe register of said county.

Tbe bill is in fact, on its face, a bill to- bave a charter, granted under the great seal of tbe state, by tbe secretary of state, and duly registered, as required by tbe acts of 1875 [ch. 92], as amended by tbe act of 1877 [ch. 121; Shannon’s Code, sec. 1881 et seq.], declared fraudulent, irregular, null and void, and -of no force and effect whatever. This is tbe prayer of tbe bill, based on charges of irregularities and frauds charged in tbe bill, in tbe whole procedure, precedent to the grant of the charter. These irregularities are of the most glaring character [criminal] charges, and the facts reported by the referees, and not excepted to by defendants, in many vital matters, sustain tbe charges of the bill, notably the fact that there was not a vote of two-thirds of the qualified voters of tbe incorporated territory who voted for incorporation, as required by the acts of 1875 [oh. 92] and 1877 [ch. 121; see Shannon’s Code, sec. 1881 et seq.]

The chancellor decreed in favor of the complainants, and the referees, on grounds somewhat different from the [148] chancellor, have reported in favor of an affirmance of the decree, to which several exceptions are filed.

It is proper 'to say here, that the proof shows a charter regularly issued by the secretary of state,, and registered in the register’s office, on certificate of the sheriff that the preliminary steps required by law had been taken, an election had, and two-thirds of the qualified voters having voted for the corporation. All this was done before the bill was filed, and part of the officers had been qualified, the mayor elect declining, we believe, to do so.

The first exception filed by respondents raised the main question on which this case turns. It is “because the referees report that complainants, as citizens and taxpayers, can file the bill to declare the charter granted by the state void, unless objection had been raised by demurrer.”

The argument in support of the exceptions is that a forfeiture of a charter when granted, and the act of incorporation complete, can only be had under the provision of the Code, sec. 3409 et seq. [Shannon’s Code, sec. 5165 et seq.], and this remedy is exclusive.

The referees say “that if this question had been made by demurrer, it would probably have been well taken, but as no demurrer was filed, nor any such defense made in the answer, -under secs. 4321 and 4385 [Shannon’s Code, secs. 6131 and 6195], the objection is waived, and cannot now be used to defeat the relief prayed.

The first of these sections is: “The filing of an answer is a waiver of objection to the jurisdiction of the court, and the cause will not be dismissed, but heard and determined on its merits, although the court may be of an opinion that the matters complained of are of legal cognizance.” But it is seen the objection is not to the jurisdiction of the court, but to the right of complainants in this form of proceeding to- go into any court; much less is the objection that the matters are of legal cognizance^ and not equitable. This would also be null, if such had been the [149] objection, by the act of 1877 [ch. 97; Shannon’s Code, sec. 6109], enlarging the jurisdiction of chancery court. The objection is to any right of action whatever in the complainants in the form of proceeding adopted, and in the character in which they sue and assert their claim.

Section 4385 [Shannon’s Code, sec. 6195] simply provides that “after answer -filed, and no plea in abatement to the local jurisdiction of the court, no exception for want of jurisdiction shall afterwards be allowed.” This only makes an answer, with no plea in abatement, a waiver of the objection of want of local jurisdiction in the court, but no such question is presented, nor is the objection, as Ave have shown, based on any such ground. It is, that conceding the facts proven, complainants are not entitled to the remedy sought, having no right to the relief as prayed in any court, in the form of proceeding adopted. The bill should be dismissed on its merits, because no legal right to the relief shown. This we do not think can be waived by failure to demur.

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Hooper v. Rhea, 3 Shan. Cas. 145 (Tenn. 1885).

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