Raynes v. Sharp

130 N.E. 199, 238 Mass. 20, 1921 Mass. LEXIS 946
CourtMassachusetts Supreme Judicial Court
DecidedMarch 3, 1921
StatusPublished
Cited by30 cases

This text of 130 N.E. 199 (Raynes v. Sharp) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Raynes v. Sharp, 130 N.E. 199, 238 Mass. 20, 1921 Mass. LEXIS 946 (Mass. 1921).

Opinion

Braley, J.

We shall refer to the subdivisions of the demurrer by paragraphs, and under paragraph four it is contended that the court has no jurisdiction to examine into the internal affairs of the demurrant, the Atlantic. Corporation, which, although organized in another State, has its office and does business in this Commonwealth. It is alleged that through this instrumentality as managed by the individual demurrants, and their interlocking corporate interests and control, the plaintiff has been misled and defrauded, and that when certain fraudulent acts and combinations are set aside and consequent losses made good, the corporation instead of being insolvent will be financially able to pay for his services and transfer to him his proportionate share of the benefits of the joint enterprise which the corporation was formed [24]*24not merely to promote, but to acquire title to the construction contract for building the ships, obtained chiefly by the plaintiff, and to receive the moneys paid under the contract by the United States Shipping Board Emergency Fleet Corporation. The bill even if the demurrant corporation "is no longer a, going concern,” does not ask for a winding up and dissolution, which can only take place under proper proceedings in the courts of its domicil, and the other demurrants being domiciled here, the corporation, if the allegations of the bill are made out, was merely their tool. See Arnold v. Maxwell, 223 Mass. 47. It is settled that under such conditions, where in some form a satisfactory remedy justly may be given, this court in its discretion will Entertain the bill. Wineburgh v. United States Steam & Street Railway Advertising Co. 173 Mass. 60, 62. Richardson v. Clinton Wall Trunk Manuf. Co. 181 Mass. 580. Van Arnim v. American Tube Works, 188 Mass. 515. See Hancock National Bank v. Ellis, 172 Mass. 39, 46; Howarth v. Lombard, 175 Mass. 570; Walsh v. Boston & Maine Railroad, 201 Mass. 527.

The causes assigned in paragraphs two, three and five, that the court has no jurisdiction to appoint a receiver of the plant or property situate outside of the Commonwealth, or prior to the appointment of a receiver under the laws of the State of its origin, or to adjudicate that any of its assets or funds derived from, or received on account of the plaintiff’s contract constitute a trust fund which may be marshalled, cannot be sustained. The form of relief, if the plaintiff succeeds in establishing liability, is for the court then to determine. It may be a money decree to be satisfied by the individual defendants severally or jointly, or solely by the corporation. United Zinc Co. v. Harwood, 216 Mass. 474, 476, and cases there collected. The court is not limited by specific prayers appearing in any form in the bill, but can under the general prayer decree adequate relief. Ginn v. Almy, 212 Mass. 486, 493. Eastern Bridge & Structural Co. v. Worcester Auditorium Co. 216 Mass. 426, 428.

It follows that the demurrer addressed to the prayers for specific relief, even when read in connection with the thirty-fourth paragraph of the bill, is not well taken.

The first paragraph however assigns as cause of demurrer, “That said bill is multifarious.” A demurrer on this ground is [25]*25not equivalent to a demurrer on the ground that no case entitling the plaintiff to equitable relief is stated. The demurrants do not specifically point out whether the bill is multifarious because of a misjoinder of causes of suit, or whether there is a misjoinder because they are made parties to the litigation with a material part of which they are not connected, and where different and independent decrees will be required. But it is stated in the brief that “The wholly independent and distinct rights upon which the bill is based . . . cannot be enforced, and the wrongs involved in their violation cannot be redressed, in a single bill.”

It was long ago said that to lay down any rule generally applicable, or as an abstract proposition to say what constitutes multifariousness, is upon the authorities impossible. Robinson v. Guild, 12 Met. 323, 328. Harrison v. Perea, 168 U. S. 311. If there is a joinder of alleged causes so diverse and disconnected that the defendants will be subjected to great and useless expense, the court ordinarily will dismiss the bill. But where it appears and is admitted that through a series of different material acts adopted and participated in by the defendants acting together for a common purpose to defraud the plaintiff, the objection of multifariousness will not be entertained. Andrews v. Tuttle Smith Co. 191 Mass. 461. Noble v. Joseph Burnett Co. 208 Mass. 75, 84. Ginn v. Almy, 212 Mass. 486, 493, and cases cited. Reno v. Cotter, 236 Mass. 556, 563. We are of opinion that the bill calls for the application of this rule.

The plaintiff, a competent consulting mechanical engineer of many years experience, well qualified to construct a shipyard and to build steam cargo vessels, entered into negotiations with the United States Shipping Board Emergency Fleet Corporation for the purpose of securing a construction contract. And having selected a suitable site for a ship building plant at Portsmouth, New Hampshire, he made an oral agreement to purchase the property for $600,000. But, before the contract with the Fleet Corporation was signed, he solicited the National Engineering Corporation, a construction company located in Boston, which was able, ready and willing to assist, to undertake the construction of a shipyard on the site selected at cost plus a reasonable profit. It was through the suggestion of the officers of this corporation that the plaintiff consulted counsel for the demurrants, [26]*26the Mason Machine Works, Mason Machine Works Company, Sharp, Mason, Bent, as well as one Clark and Osborne who at that time were representatives of the Mason Machine Works. The bill refers to these parties as the “Mason Interests,” and we shall hereafter use this designation. The plaintiff and a representative of the National Engineering Corporation thereupon began to negotiate an oral contract with the Mason Interests, which in substance provided that the plaintiff should have the active charge of the construction of the yard and building of the ships at an annual salary of $24,000, while the National Engineering Corporation was to build the shipyard at cost /plus a reasonable profit. The Mason Interests were to manufacture the engines at cost plus a reasonable profit and to supply $1,000,000 in cash or credit to the Atlantic Corporation which was to be organized to take title to the property to be acquired and to undertake the contract for building the ships. The shares when issued, and all profits were to be divided equally between the plaintiff, the National Engineering Corporation, and the Mason Interests, one third to each.

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Bluebook (online)
130 N.E. 199, 238 Mass. 20, 1921 Mass. LEXIS 946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raynes-v-sharp-mass-1921.