Industrial Building & Loan Ass'n v. Meyers-Abel Co.

95 P. 115, 12 Ariz. 48, 1908 Ariz. LEXIS 97
CourtArizona Supreme Court
DecidedMarch 27, 1908
DocketCivil No. 1035
StatusPublished

This text of 95 P. 115 (Industrial Building & Loan Ass'n v. Meyers-Abel Co.) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Industrial Building & Loan Ass'n v. Meyers-Abel Co., 95 P. 115, 12 Ariz. 48, 1908 Ariz. LEXIS 97 (Ark. 1908).

Opinion

CAMPBELL, J.

Appellant is a corporation organized under the laws of the state of Colorado for the purpose of conducting a building and loan business in the state of Colorado and in any other state of the United States in which it may desire to do business. In March, 1900, it sold to John Downs and Martha Downs, his wife, residents of Navajo county, Arizona, fifty shares of its stock, and upon their application made to them a loan of $4,000. To secure their note evidencing the loan Downs and wife executed a trust deed conveying certain real estate in Navajo county to Bromfield and Adams, as trustees. Thereafter they and their son, Benjamin Downs, became indebted to the firm of Lowenthal & Meyers of Albuquerque, New Mexico, and gave to that firm a note, securing it by a mortgage upon the same premises. Lowenthal and Meyers transferred the note and mortgage to the appellee the Meyers-Abel Company. In 1902 the Meyers-Abel Com-. pany brought suit against the Downs to foreclose their said mortgage, making the appellant herein and the trustees, Brom-field and Adams, parties. The complaint alleged that the appellant was a foreign corporation doing business in this territory, but had failed to comply with the law requiring it to file a certified copy of its articles of incorporation and an appointment of an agent, and prayed that the trust deed given by John and Martha Downs to secure their indebtedness to appellant be declared void. Appellant denied that it had failed to comply with the territorial law as alleged, and asked to have its deed of trust adjudged prior in right, and' foreclosed. This cause was numbered 127, and is hereinafter referred to by that designation. The case came on for trial on October 9, 1905. There was introduced in evidence a certificate made by the territorial auditor, which recited that the “Industrial Building and Loan Association of Denver” had not filed in his office a copy of its articles of incorporation nor an appointment of an agent. The court entered judgment [51]*51foreclosing tbe mortgage of tbe Meyers-Abel Company, and decreed it to be a first and paramount lien upon tbe premises, and barred and foreclosed appellant and tbe trustees of all right, claim, or equity of redemption in tbe premises. On October 12, 1905, John and Martba Downs filed an answer to tbe cross-complaint of appellant, in wbicb it bad asked a foreclosure of. its trust deed, setting up tbe failure of appellant to comply with tbe law regulating tbe doing of business of foreign corporations, and praying that tbe trust deed given by them to appellant be declared void. On tbe same day tbe case was tried, and judgment entered in accordance with tbe prayer of tbe complaint. Shortly after these judgments were rendered Martba and Benjamin Downs transferred tbe premises to appellee Nelson, as trustee, to secure an indebtedness. This action was brought by appellant to reopen the judgments rendered in cause No. 127. Tbe complaint sets up tbe proceedings bad in that cause, and states tbe facts to be that prior to tbe time that it made the loan to John and Martha Downs it had filed with the secretary of the territory a duly certified copy of its articles of incorporation and also an appointment of an agent, and that said articles and appointment of agent were on file and of record in the office of the territorial auditor (to- which, by law, such records have been transferred) at tbe time said auditor made the certificate which was introduced in evidence in cause No. 127, but that its corporate name was and is “Industrial Building and Loan Association,” and not “Industrial Building and Loan Association of Denver.” Further allegations are made charging misconduct on tbe part of tbe attorney who had been employed by appellant and of other facts in support of its claim for equitable relief, wbicb are not necessary in tbe consideration of this case to be here set forth. Tbe eomplalnt prays that tbe judgments in cause No. 127 be vacated; that tbe trust deed executed- by John and Martba Downs be adjudged a first lien on tbe premises therein described, and for judgment foreclosing tbe trust deed. Upon tbe trial of this action the court found sufficient of the allegations of mistake and constructive fraud to be true to entitle the plaintiff to relief in equity against the judgments, save and except that it may not maintain this action, and had no right to maintain its action in cause No. 127, because that it had, during the year 1900, an agent soliciting [52]*52business in tbe territory and in different counties of the territory, and was doing and carrying on business during said year in Navajo county, and particularly at the time the loan was made, and, further, “that on or about the fourteenth day of January, 1897, it filed in the office of the secretary of Arizona a duly authenticated copy of its articles of incorporation, and on the same date the appointment of agent upon whom notices and) processes, including summons, might be served, but that said plaintiff had not at the time of the execution of said mortgage, or prior thereto, or at any other time, complied with the laws of the territory of Arizona relating to foreign corporations by filing a duly certified copy of its articles of incorporation and the appointment of agent upon whom all notices and processes, including the service of summons, might be served with the county recorder of Navajo county, and that said plaintiff had not then, or at any time, published at least six times in some newspaper published in said Navajo county a copy of its articles of incorporation, duly certified.” The court further found that appellant has never had an office in the territory. It is not found that it has ever had or proposed to have a definite location for its business in the territory. As a conclusion of law the trial court held that 'appellant, not having complied with the law of the territory relating to foreign corporations, in that it had failed and neglected to file with the county recorder of Navajo county a copy of its articles of incorporation and an appointment of an agent, as required by chapter 7 of the Revised Statutes of Arizona of 1887, that the trust deed sought to be foreclosed is null and void, and that it was without right to prosecute its action for the vacation of the judgments. From the judgment entered dismissing its petition, and from the refusal of the court to grant a new trial, this appeal is brought.

Many questions are sought to be raised by appellant, but the determination of one of them is decisive of this case, since the trial court has found facts sufficient to warrant setting aside the judgments in cause No. 127, unless appellant is barred from maintaining its action by reason of its failure to file a copy of its articles of incorporation and appointment of agent with the county recorder of Navajo county. The Revised Statutes of 1887, which were in force at the time the loan was made, though since repealed, imposed upon foreign [53]*53corporations doing business within this territory the following requirements:

“347. (See. 1.) Any company incorporated under the laws of any other state or territory, for any enterprise, business pursuit or occupation, proposed to be carried on, or the principal office or place of business is proposed to be located, within this territory, shall make and file certified and duly authenticated copies of their articles of incorporation, with the secretary of this territory, and the county recorder of the county in which its business or principal office is located.
“348. (Sec. 2.)

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Cite This Page — Counsel Stack

Bluebook (online)
95 P. 115, 12 Ariz. 48, 1908 Ariz. LEXIS 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-building-loan-assn-v-meyers-abel-co-ariz-1908.