Moffatt v. Board of Trade

157 S.W. 579, 250 Mo. 168, 1913 Mo. LEXIS 142
CourtSupreme Court of Missouri
DecidedMay 20, 1913
StatusPublished
Cited by3 cases

This text of 157 S.W. 579 (Moffatt v. Board of Trade) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moffatt v. Board of Trade, 157 S.W. 579, 250 Mo. 168, 1913 Mo. LEXIS 142 (Mo. 1913).

Opinion

BLAIR, C.

This appeal is prosecuted from a decree of the circuit court of Jackson county making perpetual an injunction issued to restrain defendants, as officers and directors of the Board of Trade of Kansas City, from further pursuing proceedings alleged to have been instituted to expel plaintiffs from membership on that board.

The case was originally appealed to this court, and subsequently transferred on jurisdictional grounds to the Kansas City Court of Appeals, where it was heard and the judgment ordered affirmed in an opinion by Judge Johnson in which.Judge Broaddus concurred and from which Judge Ellison dissented stating he entertained a different view of the facts and deemed the opinion in conflict with certain decisions of this court. The case was then transferred here, in due time docketed,, and, after several continuances by agreement of the parties, the record is submitted for judgment. Plaintiffs and defendants are members of the Board of Trade of Kansas City (hereafter referred to as the Board of Trade) a voluntary association whose declared objects are: “To maintain a board of trade; to promote uniformity in the customs and usages of merchants; to inculcate principles of justice and equity in business; to facilitate the speedy adjustment of business disputes; to inspire confidence in the business methods and integrity of the parties hereto; to collect and disseminate valuable commercial and economic information, and generally secure to its members the benefits of co-operation in the furtherance of their legitimate pursuits, and to promote the general'welfare of Kansas City.”

Plaintiffs were officers and directors of the Moffatt Commission Company (hereafter referred to as the Moffatt Co.), and at all times herein mentioned [174]*174there was in force a provision of the constitution of the Board of Trade to the effect that all provisions of the by-laws and constitution relative to arbitration, settlement and adjustment of claim should “apply to firms and corporations, so that each member of the Board of Trade, who is a member of a co-partnership, or officer, director or stockholder of a corporation shall be required to see to it that the same proceedings shall be had as to the debts or claims of such partnerships or corporation as is required as to his own debts or claims, and his membership shall, in the discretion of the directors, be subject to like fines,' suspensions and penalties for the default of his firm or corporation as it would be for his individual acts. ’ ’

The proceedings to expel plaintiffs were initiated by Goffe, Lucas & Carkener, partners and members of the Board of Trade, who claimed plaintiffs owed them for a car of grain destroyed by high water after, as they contended, delivery had been made. Plaintiffs denied all liability. The salé occurred, if at all, on May 29, and the car in question and some eight hundred others belonging to various owners, and similarly situated with respect to the title to the grain they contained, were caught in an extraordinary flood and all the grain in them destroyed.

On June 5 the board of directors of the Board of Trade adopted the following:

“Resolved that after mature consideration and after taking legal advice, it is the sense of this directory that on all sales of track grain and grain products, the title passed at the time the sale was made and the ticket passed.”

This was the exact question then in dispute between the Moffatt Co. and Goffe, Lucas & Carkener, plaintiffs maintaining the negative thereof.

On June 8, Goffe, Lucas & Carkener by letter requested the board of directors of the Board of Trade to take up the question of the Moffatt Company’s in[175]*175debtedness to them and order payment if they were entitled to the money claimed. On the same date the directors took np this matter, and plaintiff Moffatt appeared and questioned the right of the board of directors to decide the controversy, and, further, declared he did not believe that the board of directors or an arbitration committee composed of Board of Trade members were competent to sit in cases arising from the destruction of property caused by the recent flood, stating that he doubted “if there is one member of either of these committees that is not interested” in some such case.

The board of directors, however, promptly took jurisdiction of the matter and ordered the Moffatt Company to pay. . This that company, through plaintiffs, refused to do. Of this refusal Goffe, Lucas & Carkener advised the board of directors and the latter issued a citation to plaintiff Moffatt to appear June 15 to answer the charge of violating section 1 of article 8, of the constitution of the Board of Trade. The hearing was continued to June 23 and on the 21st this suit was commenced. On July 2 a more formal complaint was filed by Goffe, Lucas & Carkener against each of the plaintiffs, charging each with (1) violating the board of directors’ order to pay Goffe, Lucas & Carkener for the car of grain, (2) failing to request a submission to arbitration and falsely alleging in the petition in this case that he had been denied the right to arbitrate and that the board was threatening to suspend or expel him, (3) utilizing .the resolution of June 5 to compel payment from others but refusing to abide by it himself, (4) procuring orders from the board requiring payment to them and then falsely alleging the board had no power to make such an order and (5) violating section 2 of article 5, of the constitution, etc., of the Board of Trade by filing this suit.

[176]*176October 13, 1903, these complaints were amended so as to specify that by reason of the'several things charged plaintiffs had violated section 2 of article 5, sections 1 and 2 of article 8, and the amendment of December 2, 1901, to article 11 of the constitution, rules and regulations of the Board of Trade. Upon the filing of the first amended complaint against Moffatt the board of directors adopted the following-resolution :

“Whereas, written complaint (a copy of which is annexed to this resolution) has been this day filed against E. O. Moffatt.
“Therefore, be it resolved, that, in order to avoid any misunderstanding of the purpose of this body, the same shall be treated and considered as the complaint upon which the said Moffatt shall be tried and that he be cited, in accordance with the rules, to appear for trial as soon as it is ascertained that no injunction prevents this body from proceeding- to try him for the offenses charged, or if an injunction does so interfere then the trial shall take place as soon as notice can be served, after the injunction is modified or dissolved, it being the intention, while obeying any injunction, to respectfully insist to the courts that this body has the right to try Mr. Moffatt and determine whether he has violated the constitution, rules and regulations.”

A similar resolution applying to the complaint against Aylesworth was adopted at the same time, and apon the filing- of the second amended complaints in October the board of directors readopted these resolutions, making them apply to the complaints as amended.

On the folowing day the answer was filed.

The amendment of December 2, 1901, referred to in the complaint, related to the responsibility of members of the Board of Trade for the acts of firms and corporations with which they were connected and is set out, in substance, above.

[177]

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Cite This Page — Counsel Stack

Bluebook (online)
157 S.W. 579, 250 Mo. 168, 1913 Mo. LEXIS 142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moffatt-v-board-of-trade-mo-1913.