Merrion v. Scorup-Somerville Cattle Co.

134 F.2d 473, 1943 U.S. App. LEXIS 3596
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 8, 1943
DocketNo. 2595
StatusPublished
Cited by3 cases

This text of 134 F.2d 473 (Merrion v. Scorup-Somerville Cattle Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merrion v. Scorup-Somerville Cattle Co., 134 F.2d 473, 1943 U.S. App. LEXIS 3596 (10th Cir. 1943).

Opinion

HUXMAN, Circuit Judge.

This is an appeal from a summary judgment entered in favor of the defendant, the Scorup-Somerville Cattle Company, a corporation, in an action in the District Court of the United States for the District of Utah, in which the plaintiffs sought to recover damages for alleged breach of contract. The parties will be referred to as they appeared in the court below.

The complaint, in substance, alleged that the defendant corporation entered into an option contract with plaintiffs August 2, 1941, in which, for a consideration of $1,000, it gave plaintiffs an option to purchase on or before September 2, 1941, for $532,500, all of the ranch property of the defendant, consisting of both real and personal property, and all located in San Juan County, Utah; that within the time and terms of the contract, plaintiffs exercised the option to become bound by the terms thereof and within time tendered payment and requested defendant to convey and deliver the property; that defendant refused to perform the contract and repudiated the agreement.

The defendant answered, generally denying the allegations of the complaint. William K. Somerville and Annie Somerville, individually and as guardian of Richard D. Somerville, a minor, intervened and filed an answer. Their answer in substance alleged that they were stockholders in the corporation; that the special meeting of the stockholders which authorized the president to sell the property of the corporation was illegal because no legal, statutory notice thereof was given to the interveners and that the president of the company was without authority to enter into the contract upon which plaintiffs relied.

Defendant and interveners filed a motion for summary judgment. In support of their motion they filed the affidavits of the secretary of the corporation, the affidavits of a number of stockholders of the corporation, and the affidavits of Clarence T. Ward and J. A. Scorup. In opposition to the application for summary judgment, plaintiffs filed the affidavit of Russell Wilkins, in the main controverting the allegations of the affidavits filed by the defendant. The import of the affidavits of the stockholders is that they were not personally served with any notice of the purported meeting of the stockholders which authorized the sale of the assets of the corporation. The affidavit of W. R. Mc-Conkie, secretary of the corporation, recites that the following notice was mailed to each stockholder of the defendant company at his or her address:

“Dear Stockholder:
“There will be a meeting of the stockholders of the Scorup-Somerville Cattle Company at the home of J. A. Scorup, Moab, Utah, at 2:00 P. M., July 12th, 1941, to consider the offer to purchase the holdings of the Scorup-Somerville Cattle Company and any other or further business that may come before the stockholders. * * *«

The affidavits of Clarence T. Ward and Mitchell M.elich relate to incidents which occurred during the process of the negotiations between the parties and which we do not consider necessary to the determination of the questions presented by this appeal.

The minutes of the special stockholders’ meeting of July 12, 1941, as far as material, are as follows:

“The stockholders of the Scorup Somerville Cattle Company, met July 12th, 1941, with the Board of Directors; Present at the meeting were: J. A. Scorup; Annie Somerville; Veda Nelson, Harve Williams; Jas. M. Scorup; Edith Scorup; Andrew Somerville; Laura Scorup and Carroll Meador as proxy for W. K. Somerville; Edith Scorup proxy for Ellen Scorup; and W. T. McConkie, Clerk. * * *
“After some discussion, it was moved by Edith Scorup, and seconded by James Scorup, that the President be authorized to sell the holdings for $532,500, on range delivery, or tally the cattle over at $40. per head for all born prior to 1941, and a fair price for 1941 calves, $50 per head for 150 horses, $50. per acre for farm land, $3. per acre winter grazing land, $5. per acre for summer grazing.
“Motion carried, all voting ‘aye’ except Veda Nelson, who voted ‘no.’ ”

[476]*476Summary judgment could be entered only if it clearly appeared from the pleadings and the supporting affidavits that the special stockholders meeting was not legally called or that no binding contract was executed.

It is conceded that the charter of the corporation does not provide for the kind of notice which must be given of a special stockholders meeting. In the absence of such a provision, Sec. 18 — 2—41, R.S.Utah, 1933, determines the kind of notice which is necessary for such a meeting. In substance, so far as material herein, the section provides that notice óf a special meeting “shall be given by personal service of the notice upon each such stockholder at least five days before the day fixed for the meeting, or by advertisement in some newspaper published in the state * * The only notice given was the written notice which was mailed to each of the stockholders. The defendants contend that this was not personal service of notice as required by law.

The term “personal service” has a well defined meaning, and is generally defined to mean what the words import, namely, notice personally given, and where written notice is required, it would ordinarily mean that the written notice must be served personally upon the one entitled to it. It is generally held that written notice by mail does not meet the requirement of a statute requiring personal service. However, the general meaning of the term may be limited, modified, or changed by statute, and it is therefore necessary in each instance to consult the statutes of the particular jurisdiction in which the question arises.

Section 104 — 43—2, R.S.Utah, 1933, provides that:

“The service may be personal by delivery to the party or attorney on whom the service is required to be made; or it may be as follows:
“(1) If upon an attorney, it may be made during his absence from his office by leaving the notice or other papers with his clerk therein, or with a person having charge thereof, or, when there is no person in the office, by leaving them, between the hours of 6 o’clock a. m. and 9 o’clock p. m., in a conspicuous place in the office, or, if it is not open so as to admit of such service, by leaving them at the attorney’s residence, with some person of suitable age and discretion ; or, if his residence is not known, by mailing as hereafter provided.
“(2) If upon a party, it may be made by leaving the notice or other paper at his residence, between the hours of 6 o’clock a. m. and 9 o’clock p. m., with some person of suitable age and discretion; or if his residence is not known, by mailing as hereafter provided.”

Section 104 — 43—3 provides that: “Service by mail may be made when the person making the service and the person on whom it is to be made reside, or have their offices, in different places between which there is a regular communication by mail.”

Section 104 — 43—3 implements Section 104 — 43—2 and the two must be read together.

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Bluebook (online)
134 F.2d 473, 1943 U.S. App. LEXIS 3596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merrion-v-scorup-somerville-cattle-co-ca10-1943.