Ohio Natl. Life Ins. Co. v. Struble

76 N.E.2d 420, 80 Ohio App. 531, 49 Ohio Law. Abs. 200, 36 Ohio Op. 311, 1947 Ohio App. LEXIS 623
CourtOhio Court of Appeals
DecidedJuly 7, 1947
Docket6826
StatusPublished
Cited by3 cases

This text of 76 N.E.2d 420 (Ohio Natl. Life Ins. Co. v. Struble) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio Natl. Life Ins. Co. v. Struble, 76 N.E.2d 420, 80 Ohio App. 531, 49 Ohio Law. Abs. 200, 36 Ohio Op. 311, 1947 Ohio App. LEXIS 623 (Ohio Ct. App. 1947).

Opinion

OPINION

By MATTHEWS, PJ.

The motion to remand, etc., this case presents to the Court the question of whether the order appealed from is a final order. If it is not, the jurisdiction of the Court is limited to dismissing the appeal, which, in effect, is no more than an order striking papers from the files of this Court and returning them to the files of the Court from which they should not have been taken. No order to that Court could be made. If it is a final order, this Court has jurisdiction, and should proceed in due course to hear the appeal on its merits.

The plaintiff’s petition in this case sets forth an action for a judgment declaring whether certain proceedings for its mutualization, under §9364-1, et seq., GC, are valid, and the rights of the defendants as dissenting stockholders. After this petition was filed, the defendants, acting on behalf of themselves, the corporation, and other stockholders, filed an independent action seeking an injunction against the mutualization, or, in the' alternative, in the event the injunction should be denied, that the Court fix the fair cash value of their stock.

Later, on motion, an order was made consolidating these two actions and directing that the second amended petition filed in the other action should stand as the answer and cross-petition herein.

*202 After certain amended pleadings were filed, this action, finally came on for trial and eventually an order was made in the following language:

“This cause came on for hearing on the pleadings, the evidence and briefs of counsel and was argued and submitted to the court, and on June 15, 1943, the court rendered an opinion, which was journalized as the Findings of the Court; thereafter the defendants filed a motion for a new trial and a motion for judgment in their favor, which said motions were argued to the Court, and the Court, being fully advised in the matter, and upon consideration thereof finds that neither of said motions is well taken and hereby overrules the same; and the Court desiring to make effective its opinion and finding of June 15, 1943, and to declare the rights of the parties hereby declares, adjudges and decrees that §§9364-1 and 9364-8 GC, both inclusive, are constitutional and valid enactments, that the Plan of Mutualization as set forth in the petition was duly adopted by the plaintiff in accordance with the provision of said Sections of the General Code of Ohio, and is free from fraud, actual or constructive, and is in all respects valid.

“To all of which the defendants except.

“The Court further finds that the Defendants, Roy L. Struble and Harold C. Knecht, as the owners respectively of 37 and 32 shares of stock in the plaintiff company and as dissenting stockholders are entitled to be paid the fair cash value of such shares as of July 29, 1941, in accordance with the provisions of §9364-a (a) GC, and the Court hereby appoints Hugh D. Rankin and Wm. M. Corcoran and Cecil L. Hall as appraisers to determine the fair cash value of said shares, and hereby directs said appraisers to proceed to make such determination and to report the same to this Court within days.

“Defendants except to the placing of this entry upon record before the entire case is disposed of as contrary to the ruling in Von Gunter v New Justice Coal Company, 147 Oh St 511.”

The appeal was taken from that order.

By complying with §9364-1 GC, a domestic stock life insurance corporation is given the absolute right to convert itself into a mutual life insurance corporation. When a majority of the stockholders and a majority of the policyholders have ap-' proved the plan, and the other conditions have been complied with, minority stockholders have no power to veto the plan. Their alternative is either to accept the plan, or, by invoking the procedure set forth in §9364-2a GC, have the fair *203 '•cash value of the stock determined in the manner provided therein. The proceeding therefor is by petition, and, upon finding that the stockholder is entitled to have the fair cash value of his stock, the court appoints three appraisers to determine the value, and the cause proceeds to judgment as .therein provided. The proceeding is entirely statutory and ..special and is so declared in §9364-2a GC, in these words:

“Such a proceeding shall be deemed to be a special proceeding within the meaning of §12223-2 GC, and final orders therein may be reviewed, affirmed, modified or reversed as ; provided in title V, part third, of the General Code.”

The proceeding by the corporation to convert from a stock •to a mutual company precedes the institution of the special proceeding to have the stock of a dissenting stockholder valued. The validity of the corporate action is not drawn in question in that proceeding. The only questions that arise therein are whether the stockholder has taken the requisite steps to assert his right to the fair cash value of his stock and what that fair cash value was.

The plaintiff’s petition did not set forth a cause of action' under-§9364-2a GC, to have the value of the defendants stock fixed. It set forth a cause of action for a judgment declaring that its proceedings for mutualization were valid and binding upon both consenting and non-consenting persons. When the Court made that declaration, it granted all the relief to which the plaintiff was entitled, and by §12102-1 GC, “such declarations shall have the force and effect of a final judgment or decree.” No further judicial act was left to be performed. The special proceeding to fix the value of the dissenters’ stock necessarily followed in point of time and was predicated upon a valid mutualization action by the corporation. So far as the •corporate action was concerned, it was entirely irrelevant. The right to the fair cash value arose out of the mutualization proceeding, but was not involved in it. It is only because of the consolidation of these two cases that the validity of the mutualization plan and the proceeding to fix the fair cash value of the dissenters’ stock appear to be involved with one •another. Normally, they would be entirely separate and distinct. If there is any relationship, the proceeding to fix the value of the stock is collateral and ancillary, following the declaratory judgment and to carry it into effect. In this respect it resembles the case of State, ex rel. v Meals, 93 Oh St 391, in which the Court said, at page 395, of an order granting an in *204 junction, ordering an accounting and appointing a referee, that:

“The general equities of the case were found in favor of the plaintiff, and while the further order of the court was necessary to carry into effect the right settled by the order, it was merely auxiliary to or in execution of the order of the court made on the merits of the case, and we are of the opinion that the court of appeals had jurisdiction of the subject-matter. on appeal.”

Counsel cites Von Gunten v New Justice Coal Co., 147 Oh St 511, as repudiating the “proposition a ruling of the court could be .split and two judgments rendered” even though the action is part in law and part in equity.

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Related

Quarles v. Quarles
353 A.2d 285 (District of Columbia Court of Appeals, 1976)
Sellman v. Schaaf
244 N.E.2d 494 (Ohio Court of Appeals, 1969)
Ohio Natl. Life Ins. Co. v. Struble
81 N.E.2d 622 (Ohio Court of Appeals, 1948)

Cite This Page — Counsel Stack

Bluebook (online)
76 N.E.2d 420, 80 Ohio App. 531, 49 Ohio Law. Abs. 200, 36 Ohio Op. 311, 1947 Ohio App. LEXIS 623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-natl-life-ins-co-v-struble-ohioctapp-1947.