People ex rel. Brownrigg v. Brentano

102 N.E. 773, 259 Ill. 359
CourtIllinois Supreme Court
DecidedJune 18, 1913
StatusPublished
Cited by8 cases

This text of 102 N.E. 773 (People ex rel. Brownrigg v. Brentano) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. Brownrigg v. Brentano, 102 N.E. 773, 259 Ill. 359 (Ill. 1913).

Opinion

Mr. Ciiiee Justice Cooice

delivered the opinion of the court:

This is an original proceeding for mandamus, brought by the relator, John J. Brownrigg, against Theodore Brent'ano, one of the judges of the superior court of Cook county, for the purpose of compelling the respondent to proceed with the hearing of a certain cause pending in the superior court of Cook county. The matter has been presented to us for determination upon the pleadings, which consist of the petition for mandamus, the answer thereto and a demurrer to the answer. From the answer, and from the allegations of the petition which are either admitted or are not controverted by the answer, the following facts are disclosed

, On December n, 1911, one Casper L. Redfield filed his bill of complaint in the superior court of Cook county against Brownrigg and certain other defendants, including James D. Lynch, J. E. Norling, F. A. Lmidquist and A. L. Craig, to enforce specific performance of a contract for the transfer to Redfield of certain shares of the capital stock of the Lorimer-Lundquist Company, a corporation, and for other incidental relief. By that bill it was alleged that those who owned and controlled the capital stock of the Globe Automatic Telephone Company, a corporation, (hereinafter. referred to as the Globe Company,) acting and dealing with those who1 owned and controlled the capital stock of the Lorimer Automatic Telephone Company, a corporation, after making the contract sought to be enforced, and for the purpose' of carrying out the same, re-organized the Lorimer Automatic Telephone Company, decreased its capital stock and changed its corporate name to the Lorimer-Lundquist Company; that as. a part of the plan of such re-organization one-half of the capital stock of the Lorimer-Lundquist Company was issued to. the interests of the Globe Company and the other one-half to the interests which previously were of the Lorimer Automatic Telephone Company; that the assets of the Globe Company consisted almost wholly of certain patents and patent rights which became exceedingly valuable about the time of said re-organization, but that for a long time prior thereto the Globe Company had been inactive, had held no meetings and had transacted no business because of a total lack of funds, and that on account of such quiescent condition the defendants Lynch, Nor ling, Craig and Lundquist, who were officers of the company, were enabled to, and did, when the patents and patent rights became valuable, in violation of their contractual obligations and oí their duties as officers to the stockholders of the company, by means of said reorganization and in connection therewith, wrongfully and fraudulently convert and appropriate the assets of the Globe Company, including one-half of the capital stock of the reorganized company, to their own use, in disregard of the rights of Redfield; that in said re-organization, Lynch, Nor-ling, Craig and Lundquist, or some of them, acted for and on behalf of the Globe Company and its stockholders, and bargained for and obtained one-half of the capital stock of the Lorimer-Lundquist Company in exchange for the patents and patent rights owned by the Globe Company, and caused the certificates of stock to be issued in the name of Lynch, individually or as trustee, and now claim that he holds the same for them alone; that after the re-organization above mentioned, all the assets of the Lorimer-Lundquist Company were sold to the Western Electric Company for $650,000 and a dividend of thirty per cent was declared by the Lorimer-Lundquist Company, which would distribute substantially all the cash received from, said sale, the balance of the purchase money being payable in one and two years. The prayer of the bill was that the court determine the precise interest of Redfield in the capital stock of the Lorimer-Lundquist Company; that Lynch be restrained from receiving, and the company from paying to him, any dividend or distributive share thereon, and that Lynch be required to transfer, assign and deliver to Redfield such stock in the Lorimer-Lundquist Company held by Lynch as equitably belongs to Redfield, and for other incidental relief.

On January 29, 1912, Brownrigg answered the bill filed by Redfield, and also filed a cross-bill against the complainant in the original bill and the remaining defendants, alleging that he and F. A. Lundquist and John K. Norstrom were the inventors of the patents and patent rights that, were owned by the Globe Company and exchanged for the capital stock of the Lorimer-Lundquist Company; that during the year 1900 they entered into a partnership with John E. Norling and Peter Norling under an agreement that the Norlings should furnish the capital necessary to develop and manufacture the inventions covered by the patents and patent rights, and in consideration thereof should receive an assignment of a one-half interest in the said patents and patent rights, the inventors to retain the other one-half interest for themselves; that by a course of inequitable and unconscionable schemes since the year 1900, John E. Norling, Lynch, Craig and Lundquist had succeeded, without compensation or consideration, in appropriating to themselves and in converting to their own use, from time to time, portions of the interest in said patents and patent rights and inventions equitably belonging to- Brownrigg, and had thereby, from time to time, reduced his proportion or interest, so that at the time of filing the cross-bill Brownrigg had but 141 shares of a total of 5000 shares of the capital stock of the Globe Company, and that a large portion of the stock of the company had been issued without payment therefor. The prayer of the cross^-bill was, that the rights of Brownrigg and other stockholders of the Globe Company who had not been recognized as stockholders of the Lorimer-Lundquist Company be ascertained; that the consolidation of the Globe Company with the Lorimer Automatic Telephone Company and the transfer of the patents and patent rights to the Lorimer-Lundquist Company be declared void and be set aside; that the sale to the Western Electric Company be declared void and set aside, or, in the alternative, that the interest of Brownrigg in the capital stock of the Lorimer-Lundquist Company be ascertained and transferred to him, and for incidental relief.

On February 5, 1912, the Lorimer-Lundquist Company answered the original bill and filed a cross-bill, praying that the various claimants be compelled to interplead how the funds in possession of said company should be distributed and asking permission to pay such funds into court, and that all claims against it be transferred to such funds when paid into court.

On March 7, 1912, Lundquist, Norling, Craig, Lynch and the Globe Company answered the original bill and the cross-bill filed by Brownrigg, denying material allegations of those bills and alleging other facts for the purpose of showing that there was no equity in the bill or cross-bill.

On March 6, 1912, Lynch brought an action in the municipal court of Chicago against the Lorimer-Lundquist Company to recover the dividend of $30 per share on the shares of stock held by him, which had been declared by the company, as stated in the original bill. Thereupon Red-field filed his petition in the superior court in the cause above mentioned, praying for an order restraining the prosecution of the suit in the municipal court until the further order of the superior court. Lynch answered this petition, and on May 28, 1912, the superior court entered an order restraining the prosecution of the suit in the municipal court.

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Bluebook (online)
102 N.E. 773, 259 Ill. 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-brownrigg-v-brentano-ill-1913.