Meikle v. Wenatchee North Central Fruit Distributors

225 P. 819, 129 Wash. 619, 1924 Wash. LEXIS 808
CourtWashington Supreme Court
DecidedMay 12, 1924
DocketNo. 18376
StatusPublished
Cited by1 cases

This text of 225 P. 819 (Meikle v. Wenatchee North Central Fruit Distributors) 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
Meikle v. Wenatchee North Central Fruit Distributors, 225 P. 819, 129 Wash. 619, 1924 Wash. LEXIS 808 (Wash. 1924).

Opinion

Parker, J.

The plaintiff, as receiver for the North Pacific Fruit Distributors, a corporation of Spokane, seeks recovery from the defendant Wenatchee North Central Fruit Distributors, a corporation of Wen-atchee, upon the theory that the Wenatchee corporation is indebted to the Spokane corporation upon its membership obligation to that corporation. In view of our conclusion upon this question the plaintiff’s claim of recovery against other defendants becomes of no consequence in our present inquiry. A trial upon the merits in the superior court for Chelan county resulted in findings and judgment denying to the plaintiff any recovery, from which he has appealed to this court.

[620]*620The controlling facts are not in dispute and may be summarized from the findings and the record before us, as follows: These corporations are both organized and existing under §§ 3888-3900, inclusive, Rem. Comp. Stat. [P. C. § 4698 et seq.], as corporations not formed for profit, as contemplated by the provisions of that statute. Neither has any capital stock, and neither carries on business for profit. The members of the Spokane corporation are the "Wenatchee corporation and several other similar corporations. The members of the Wenatchee corporation are certain individuals including some of the defendants in this action, though, as we have already noticed, this becomes of no consequence in our present inquiry. The purpose for which the Spokane corporation was formed is correctly summarized in the court’s findings from its articles of incorporation, as follows:

“To organize a central selling agency through which fruit growers in Washington, Oregon, Idaho and Montana could market their fruits in the most economical manner, and to act as their agent in so doing.
“To supervise the establishment of uniform grades, to own property, to borrow money, and to assist its members by way of loans, etc.
“This was intended to promote co-operation among those interested in growing and marketing the horticultural products of the northwestern states, and was for mutual protection and benefit.”

In October, 1918, the Umpqua Valley Fruit Union, a corporation (not a member of the Spokane corporation), recovered a money judgment in the superior court for Spokane county against the Spokane corporation in the sum of $1,954 as damages for its negligent handling of a shipment of fruit for that union. Thereafter execution was issued upon that judgment and returned wholly unsatisfied. Thereafter an action was commenced in the superior court for Spokane [621]*621county by the Umpqua Valley Fruit Union seeking the appointment of a receiver for the Spokane corporation, to the end that such receiver might collect and subject its assets to the satisfaction of claims of its creditors, including the judgment claim of the Umpqua Valley Fruit Union. A judgment was accordingly rendered in that action appointing appellant such receiver. On the same day, immediately following the rendering of the judgment appointing appellant receiver in that action, the court entered therein its order reading in part as follows:

“That the receiver levy an assessment of $3,778.65 against the following firms and individuals, constituent members of said North Pacific Fruit Distributors, giving ten days notice thereof, and if payment is not made at the end of said ten days the receiver is hereby authorized to commence the proper suit or proceedings against them, or any of them, for the collection of said assessment to-wit: Against Wenatchee North Central Fruit Distributors, . . .”

This order was ex parte as to the Wenatchee corporation and all others against whom such assessment was assumed to be levied. In other words, that order amounted to nothing more than an authorization of the receiver to bring an action against the several persons and corporations therein named, seeking recovery upon their alleged membership obligations. Appellant, as receiver, having made demand accordingly upon each of the corporations and persons so> assumed to be assessed, and no payments being made in response thereto, he commenced this action in the superior court for Chelan county, seeking recovery against the Wenatchee corporation and certain of the other corporations and persons named in the assessment order above quoted from. Thereafter the cause [622]*622came on for trial, resulting in judgment denying recovery, as we have already noticed.

During all the times in question the Wenatchee corporation was a member of the Spokane corporation under a contract of membership which, we are warranted in assuming, was a contract of membership in compliance with the by-laws of the Spokane corporation. That contract is not before us, but the by-laws are before us, and we are warranted, as the trial court was, in determining its terms by reference to the bylaws ; it being manifestly made as the by-laws require. So determined, it seems plain that that contract of membership was in substance as follows: In so far as any financial obligation might arise in favor of the Spokane corporation against the Wenatchee corporation by reason of such membership, the Wenatchee corporation, as other members, agreed to become responsible for and pay the expenses of conducting the business and affairs of the Spokane corporation in the proportion that the fruit which such member should have for marketing in car lots during any crop year should bear to the total tonnage marketed by the Spokane corporation during any such year. The Spokane corporation was authorized to incur such expenses as might be necessary in marketing the fruit of its members, and such other outlays as might be authorized by the board of trustees incident thereto, including the establishment of a surplus fund; all of these expenses to be pro rated among the members in proportion to the tonnage marketed by them through the Spokane corporation. The membership contract, in so far as it looked to the charging of a financial obligation of any nature against the member, plainly evidences the intent that all such obligations for whatever purpose imposed upon the member shall be imposed upon each member in pro[623]*623portion as we have above indicated and not otherwise. There is no provision in the articles of incorporation of the Spokane company, nor in the by-laws of that company, imposing any financial liability whatever on the members, other than those which we have above summarized. There is no proof whatever in this case of the amount of tonnage, if any, ever handled by the Spokane corporation for the Wenatchee corporation; nor is there any proof of the total amount of tonnage handled by the Spokane corporation for any or all of its other members in any year or at all. In other words, so far as this record advises us, we do not know but that the Spokane corporation never handled a single ton of fruit or produce for the Wenatchee corporation, though it may have handled thousands of tons for its other members. From the facts above summarized, the learned trial court concluded as a matter, of law:

“The liability (if any) of each of the four members of the Spokane corporation for the debt of the latter, is a several liability for a proportionate part of the debt, less than the whole and is not a joint and several liability for the entire debt.

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Cite This Page — Counsel Stack

Bluebook (online)
225 P. 819, 129 Wash. 619, 1924 Wash. LEXIS 808, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meikle-v-wenatchee-north-central-fruit-distributors-wash-1924.