Kibby v. Leon

241 S.W. 1064, 1922 Tex. App. LEXIS 952
CourtCourt of Appeals of Texas
DecidedMay 5, 1922
DocketNo. 8201.
StatusPublished
Cited by11 cases

This text of 241 S.W. 1064 (Kibby v. Leon) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kibby v. Leon, 241 S.W. 1064, 1922 Tex. App. LEXIS 952 (Tex. Ct. App. 1922).

Opinion

PLEASANTS, C. J.

This suit was brought by the appellee against the General Oil Company, the S. E. J. Cox Company, and the Prudential Securities Company, all of said companies being business associations organized under a trust agreement, and against H. A. Kibby, S. E. J. Cox, and other named defendants, who were trustees of the above-named trust association.

Plaintiff sued as a creditor and shareholder of the General Oil Company, and alleged that the trustees of the company had been guilty of fraud and negligence in the management of the property, and prayed for a temporary injunction restraining the General Oil Company and its trustees from paying any further sums of money to S. E. J. Cox or Mrs. N. E. Cox, pending the hearing thereof, and for an accounting on the part of 5. E. J. Cox, Mrs. N. E. Cox, and the General Oil Company; for the appointment of a receiver for said General O'il Company, pending the time when other and faithful trustees should be chosen by the plaintiff and other shareholders therein; for the cancellation of all credits in favor of the Prudential Securities Company, the S. E. J. Cox Company, S. E. J. Cox, and Mrs. N. E. Cox, and for an accounting by the said parties and the *1065 General Oil Company for moneys already paid the former by tbe latter; for tbe cancellation of all selling contract between said companies and tbe General Oil Company, and for judgment for tbe amount of tbe debt, interest, attorney’s fees, and for foreclosure of lien, and for general relief.

Pending tbe bearing of tbe application for injunction, H. W. Hopkins and other creditors and shareholders of tbe company intervened in the suit and adopted the allegations of plaintiff, and in addition to the .prayer of the petition asked for tbe removal of appellants as trustees and tbe appointment of suitable trustees by tbe court.

The defendants denied all of tbe allegations contained in tbe petitions of tbe plaintiff and the interveners.

On October IS, 1920, tbe court appointed a receiver and enjoined all persons whomsoever from doing any act that interferes with the exercise of the powers and authority of said receiver.

On May 28, 1921, tbe following judgment was rendered in tbe cause:

“Be it remembered that on this the 28th day of May, A. D. 1921, came on to be heard and determined the above styled and numbered cause on the agreement filed herein by all of the parties hereto, save and except certain in-tervenors, who have under the permission of this court from time to time filed interventions herein as creditors of the General Oil Company under the receivership proceedings.
“And it appearing to the court that said agreement contains the following provisions, to wit:
“ ‘(1) That a final judgment may be entered removing S. E. J. Cox, N. E. Cox, H. A. Kibby and A. H. Klees as trustees of the General Oil Company and as officers of the said General Oil Company. '
“ ‘(2) That the parties hereto waive any appeal' or writ of error or other proceedings to review or revise this final judgment.
“‘(3) That as to all *>ther matters and issues except the ones herein stated, the parties agree that same shall be dismissed out of this cause without prejudice to any of the parties hereto.
“‘(4) That the court may and is here now requested to name and appoint five (5) persons suitable to the court as trustees of the General Oil Company, to carry out the trust agreement constituting said company; said parties hereby ratifying and confirming and acquiescing in any appointment that may be made by this court by virtue of the request herein made and the authority of law with which this honorable court is vested.
“‘(5) That tbe parties hereto further agree that all General Oil Company stock now in the hands of M. McDonald, receiver-, as the property of S. E. J. Cox, N. E. Cox, A. E. Crick, or either of them, may be canceled and held for naught.
“ ‘(6) That the reeéiver, herein appointed, shall promptly settle his accounts and submit the same to this court for approval, and upon approval of same, the said receiver shall be discharged conditioned that such proceedings, meet with the approval of this honorable court.’ .
“And the following parties to said agreement,, namely, S. E. J. Cox, N. E. Cox, H. A. Kibby and H. A. Klees, here now appear in open court by their attorneys, and also here now appear in open court, M. McDonald, receiver herein, in person and by his attorney, Sewell Myer, and also here now appears in open court, the General Oil Company (the trust company) , and the General Oil Company (the corporation), by their attorney, John C. Williams, now, therefore, because of said agreement, and the testimony heretofore introduced by the depositions of numerous parties herein, the court orders and adjudges that S. E. J. Cox, N. E. Cox, H. A. Kibby, and A. H. Klees, who were formerly trustees and officers of the General Oil Company, a common-law trust company, defendant herein, and each of them, be and they, are hereby removed as trustees or officers of the General Oil Company, the said trust company.
“It is further ordered, adjudged and decreed, that all of the General Oil Company stock now in the hands of M. McDonald, receiver, and held by him as the property of S. E. J. Cox, N. E. • Cox, A. E. Crick, or either of them, be returned to the General Oil Company and canceled and hereafter held for naught.
“It is further ordered, adjudged and decreed by this court that all other issues except the issues determined herein, be .dismissed from this cause without prejudice and that each party hereto, except as to the issues here determined, be allowed to and each of them do hereby take a nonsuit without prejudice as to each and every issue heretofore made herein, except as herein stated, and that this judgment does not preclude any party hereto from hereafter litigating any issue that might have been litigated herein, except as, to the issues herein determined.
“The following parties are hereby named as trustees of the General Oil Company in lieu of and instead of all persons heretofore acting as permanent or temporary trustees of said company, to wit, M. McDonald, John C. Wil; liams, K. G. Barkley, H. D. Conley, and Geo. E. Liebrandt, said persons to become trustees as aforesaid and assume the powers and duties as such whenever this receivership proceeding is finally closed and the receiver herein is discharged by the court, at which time they and each of them shall be clothed with all the powers given the trustees under the articles of trust by which the General Oil Company is incorporated.

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Bluebook (online)
241 S.W. 1064, 1922 Tex. App. LEXIS 952, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kibby-v-leon-texapp-1922.