Shepherd v. F. J. Kress Box Co.

153 S.E. 649, 154 Va. 421, 1930 Va. LEXIS 225
CourtSupreme Court of Virginia
DecidedJune 12, 1930
StatusPublished
Cited by9 cases

This text of 153 S.E. 649 (Shepherd v. F. J. Kress Box Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shepherd v. F. J. Kress Box Co., 153 S.E. 649, 154 Va. 421, 1930 Va. LEXIS 225 (Va. 1930).

Opinion

Holt, J.,

the opinion of the court.

In 1903 the P. J. Kress Box Company was organized and chartered as a joint stock corporation under the laws of the State of Pennsylvania, with its principal office in Pittsburgh, in that State.

On June 19, 1908, there was incorporated in Virginia [423]*423by the same people another joint stock company bearing the same name, designed to carry on business of the same character with its principal office at Petersburg.

These companies were close corporations, were both controlled by P. J. Kress and were operated from the Pittsburgh office. Their affairs were to a certain extent mingled and it is charged that some of the assets of the Virginia company were improperly transferred to the Pennsylvania corporation, which transfer, it is claimed, has tended to defeat a just debt due to the plaintiff from the Virginia company for services rendered by him to it before and after its dissolution.

In the fall of 1924 the stockholders of the Virginia corporation proceeded in the manner provided for by law to dissolve it. Code, section 3810. The certificate of dissolution bears date November 3; 1924. Plaintiff states that he knew nothing about this, but worked for it then and afterwards under an antecedent contract.

The writ was placed in the hands of the officer on October 7, 1927, so suit was commenced on that date (Code, section 6061; Burks PI. & Pr. [2d ed.] pages 390-1), or within a few days of the expiration of the three year period from the the date of dissolution ordered by the State Corporation Commission at the instance of stockholders, and the bill was filed on November 21, or after that date. It named as defendants “F. J. Kress Box Company, Virginia Corporation, a corporation under the laws of the State of Virginia; F. J. Kress, Paul C. Kress and Mary Kress, Directors of said F. J. Kress Box Company, Virginia Corporation, and as such trustees of said Virginia Corporation; F. J. Kress, individually; and F. J. Kress Box Company, a Pennsylvania Corporation.”

All of them except the Virginia corporation were nonresidents. There was no personal service of process on [424]*424any of them and no general appearance. They did appear specially and asked that the suit be dismissed as to them for want of jurisdiction. It appeared from an inspection of the record that the proceedings were in personam and not in rem, or on attachment, and since these defendants were not actually before the court voluntarily, or on proper personal process, they were dismissed from this litigation by order of date March 15, 1928.

Thereafter, Mr. J. Gordon Bohannan made in writing this suggestion to the court:

“The undersigned, an attorney at law, practicing in your Honor’s court, respectfully represents that upon the institution of this suit and the service of process to answer the bill of complaint to be filed herein, he was retained by F. J. Kress Box Company, Virginia Corporation, one of the defendants named in the writ, to represent the said corporation.

“It appears from the allegations of the bill filed herein at the second November Rules, 1927, and from Exhibit 16 filed therewith, that the said corporation was dissolved by an order of the State Corporation Commission of Virginia on the 3d day of November, 1924.

“The said process was served within the period of three years from the date of such dissolution. But the said period of three years from the date of such dissolution having now expired and having expired before the bill was filed, the final dissolution of the said corporation for all purposes is suggested to the court.

“J. Gordon Bohannan,

“Attorney at Law.”

Argument was held on this suggestion and a decree entered on the second day of October, 1928, abating the said suit as to the said Virginia corporation, and ordering that it be removed from the docket at the cost [425]*425of the plaintiff. It is from that decree of October 2, 1928, dismissing the suit as to the Virginia corporation, that this appeal is taken.

Having reached the conclusion that it was without jurisdiction, the court did not undertake to pass upon the merits of the plaintiff’s case. We will, for the purposes of this appeal and for those purposes only, assume that it is meritorious. If jurisdiction is established, the cause must be fought out in the trial court, and if there is no jurisdiction, the plaintiff is without remedy here or there.

Plaintiff contends that quoad this suit there has been no dissolution and in support of that claim we are cited to the Virginia statutes under which Virginia corporations are created and by which they are controlled.

“By the principles of the common law, in the absence of any saving statute, the dissolution of a corporation has the effect of abating all actions pending against the corporation at the date when the dissolution takes effect.” 10 Cyc., page 1314.

“It is too well settled to admit of any controversy that unless there is a statute to the contrary, actions by a corporation abate upon its dissolution; and it is equally well settled that actions against a corporation abate where it is dissolved pending the action.” 8 Fletcher Cyc. Corp., section 5613. Rider v. Nelson & Albemarle Union Factory, 7 Leigh (34 Va.) 156, 30 Am. Dec. 495; May v. State Bank of N. C., 2 Rob. (41 Va.) 56, 40 Am. Dec. 726.

If we take the Code provisions, disassociated from their history, as they stood when this suit was brought, no insuperable difficulty is presented.

In the construction of its provisions, it is to be remembered that the Code itself is a single act of the legislature. “The different sections should be regarded, [426]*426not as prior and subsequent acts, but as simultaneous expressions of the legislative will.” 36 Cyc. 1167. Dillard v. Thornton, 29 Gratt. (70 Va.) 392, 396. All provisions there appearing which deal with the same subject should be construed together and reconciled whenever possible. Piedmont, etc., Corp. v. Commonwealth, 146 Va. 287, 135 S. E. 673.

We do not search through the history of statutes for difficulties not patent on their face, but take them first as they are written into the Code itself. If when so read they are reasonably clear, that suffices.

Code, section 3810, deals with dissolutions at the instance of stockholders, and contains these provisions among others:

“Whenever all the stockholders shall consen b in writing to the dissolution no .meeting or notice thereof shall be necessary, but on filing the said consent in the office of the State Corporation Commission, the said Commission shall issue a certificate of dissolution, and the said corporation shall thereupon stand dissolved and the said board shall proceed to settle up and adjust the business and affairs of the said corporation; but no such dissolution shall affect the rights of any creditor of the said corporation existing at the time of such dissolution. * * *

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Bluebook (online)
153 S.E. 649, 154 Va. 421, 1930 Va. LEXIS 225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shepherd-v-f-j-kress-box-co-va-1930.