State ex rel. Northwestern Colonization & Improvement Co. v. Huller

23 N.M. 306
CourtNew Mexico Supreme Court
DecidedJanuary 15, 1918
StatusPublished
Cited by13 cases

This text of 23 N.M. 306 (State ex rel. Northwestern Colonization & Improvement Co. v. Huller) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Northwestern Colonization & Improvement Co. v. Huller, 23 N.M. 306 (N.M. 1918).

Opinions

OPINION BY THE COURT

HANNA, C. J.,

(after stating the facts as above). We shall consider the assignments of error from the standpoint of the importance of the questions raised, as the order-in which the assignments of error are presented is not the sam-e in the briefs, and tends to confusion.

[1] The first question to be considered is whether an information in the nature of quo warranto is the proper remedy to try the title to office in a private corporation. In this jurisdiction we unfortunately have no statute upon the subject of this remedy and are left entirety to the common-law principles and our interpretation of the scope of the statute 9th Anne, chapter 20. The English rule is that to justify the emplojnnent of quo warranto to try title to office it is essential that the office be such as the law deems of a public nature. The Massachusetts courts seem to be the only American courts which follow the English rule. All other American courts agree in holding that an action of quo warranto, or in the nature of quo warranto, is the proper remedy to test the right of office in a private corporation. The American cases are collected in the note to the case of George H. Brooks, plaintiff in error, v. State of Delaware ex rel. Robert H. Richards, Attorney General, reported in 26 Del. 1, 79 Atl. 790, 51 L. R. A. (N. S.) 1126, Ann. Cas. 1915A, 1133. See, also, High on Extr. Leg. Rem. (3d Ed.) § 653.

[2] The next question in order of importance is raised by point 6 in appellant’s brief, that a corporation cannot act as relator in informations in the nature of quo warranto. It is argued that under the provisions of the statute of Queen Anne, § 4, the right to exhibit quo warranto informations upon relation was confined to “any person or persons desiring to sue or prosecute the same and who shall be mentioned'in such information or informations as the relator or relators.” It is further pointed out that the costs to be recovered are “his or their costs,” which would preclude the assumption that a corporation falls with, the purview of the statute. It is said that the reason for the rule is that an informer or relator in quo warranto procedings must be, a person or individual as distinct from the corporate entity, because the entire purpose of the informer or relator is to inform the crown or state officers of certain facts under oath for the purpose of moving him officially to take action in the premises, and that a corporate entity is not capable of taking an oath or giving him the information.

We cannot see the appropriateness or force of this argument. It might just as well be argued that a trustee could not bring an action on behalf of his cestui que trust, or that a guardian could not bring an action on behalf of his ward, under appropriate circumstances. ' Appellant has cited numerous authorities which we do not, however, consider in point, and we are disposed to agree with the contention of appellee that the real test of the right of the relator to bring a proceeding in quo warranto is whether the relator has the necessary interest to maintain the action. We are of the opinion that an information for the purpose of dissolving a corporation or seizing its franchises cannot be prosecuted in the name of the state at the relation of private persons, even though leave be first obtained of the court, but that such proceeding must be instituted by the Attorney General. High’s Extr. Leg. Rem. (3d Ed. § 698. In this ease, however, it is not a suit to dissolve the corporation, but to inquire by what right or authority individuals named as respondents are exercising the franchises of the corporation, and it would seem to be clear that the corporation itself would be necessarily materially interested in any alleged usurpation of its franchises. It is contended that.no cases in point upon this question can be found. A number of cases, however, have been cited bjr appellee involving the right of municipalities to maintain an action, and while these cases are not strictly in point, we cannot agree that a different line of reasoning should apply to private corporations, but consider that the rule as applied to municipal corporations, must logically be extended to private corporations. A municipal corporation cannot verify an information or respond in costs any more than can a private corporation, as both are necessarily compelled to act through officers or agents. The eases cited by appellee are Beverly v. Hattiesburg, 83 Miss. 621-624, 36 South. 74; State ex rel. Kansas City, Mo., v. East Fifth St. Railway Co., 140 Mo. 539, 41 S. W. 955, 38 L. R. A. 218, 62 Am. St. Rep. 742; State ex rel. City of St. Louis v. L. D. Co., 246 Mo. 618-637, 152 S. W. 67; City of Olathe v. M. & K. I. Ry. Co., 78 Kan. 193, 96 Pac. 42.

In the last-mentioned case, the court distinctly held that a municipal corporation is a person, within the meaning of the word as used in a statute providing that:

“Where the action is brought by a person claiming an interest in the office, franchise or corporation, or claiming any interest adverse to the franchise, gift or. grant which is the subject to the action, it shall be prosecuted in the name and under the direction and at the expense of such persons.”

In State ex rel. Vilter Mfg. Co. v. Milwaukee, B. & L. G. R. Co., 116 Wis. 142, 92 N. W. 546, the court said a private corporation is a person, within the meaning of section 3466, S'tats. 1898, providing that an action may be brought by the Atotrney General in the name of the state “when any person shall usurp, intrude into or unlawfully hold or exercise any public office, civil or military, or any franchise within the state.”

[10] Cases to the same effect might be multiplied, but it is sufficient to say that American authorities are in one accord in holding that the word “person” is a generic term of comprehensive nature, embracing natural and artificial persons, such as corporations.

The so-called Tularosa Case is referred to as an authority upon the point under consideration. This case was first reported - under the title of Community Ditches or Acequias of Tularosa Townsite, a Corporation, v. Tularosa Comumnity Ditch, 16 N. M. 750, 120 Pac. 301, in which case it was held that:

“The remedy for the unlawful assumption of the right to act as a corporation, and the exercise of corporate rights ultra vires, is by) quo warranto and not in equity.”

On a second appeal of this case, reported in 19 N. M. 352, 143 Pac. 207, this court referred to the question of whether the common law or the statute of Anne applied to a proceeding where th-e object sought is to oust individuals from the exercise of a corporate franchise, or against a corporation for •usurping a franchise. The court said that, the information having been filed on the assumption that the statute of Anne applied to a proceeding in the nature of the one before the court, and there having been no objection upon that ground, the court would treat the information as properly filed, although there was doubt as to whether the statute had any application to the proceeding, citing Rex v. Carmarthen, 2 Burr, 869, and other cases relied upon by apellants.

For the reasons indicated the Tularosa Case can have little importance as authority in the consideration of the question before the court.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. Rivera
New Mexico Court of Appeals, 2017
Town of Mesilla v. City of Las Cruces
898 P.2d 121 (New Mexico Court of Appeals, 1995)
State ex rel. Huning v. Los Chavez Zoning Commission
641 P.2d 503 (New Mexico Supreme Court, 1982)
State Ex Rel. Valles v. Brown
639 P.2d 1181 (New Mexico Supreme Court, 1981)
State v. McHorse
517 P.2d 75 (New Mexico Court of Appeals, 1973)
State Ex Rel. Garcia v. Martinez
459 P.2d 458 (New Mexico Supreme Court, 1969)
Platco Corporation v. Shaw
428 P.2d 10 (New Mexico Supreme Court, 1967)
Gonzales v. Oil, Chemical & Atomic Workers International Union
419 P.2d 257 (New Mexico Supreme Court, 1966)
Guthrie v. Threlkeld Co.
192 P.2d 307 (New Mexico Supreme Court, 1948)
State Ex Rel. Dow v. Graham
270 P. 897 (New Mexico Supreme Court, 1928)

Cite This Page — Counsel Stack

Bluebook (online)
23 N.M. 306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-northwestern-colonization-improvement-co-v-huller-nm-1918.