State Ex Rel. Palfrey v. Simms

152 So. 395
CourtLouisiana Court of Appeal
DecidedJanuary 29, 1934
DocketNo. 14500.
StatusPublished
Cited by7 cases

This text of 152 So. 395 (State Ex Rel. Palfrey v. Simms) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Palfrey v. Simms, 152 So. 395 (La. Ct. App. 1934).

Opinions

HIGGINS, Judge.

■ Relators, as policyholders of an industrial life insurance company, instituted quo war-ranto proceedings for fee purpose of being recognized and installed as directors, claiming to have been elected at a meeting held in accordance with the charter and by-laws of the corporation at 4 p. m., November 7, 1932, and also ashed for a writ of injunction to prevent the respondents from interfering with them in the enjoyment of their office.

Defendants claim that they were duly elected in accordance with the provisions of the charter and by-laws at a meeting of the policyholders held at 9 a. m. on November 7,1932, at which time 2,773 votes by proxy and 7 in person, representing the entire attendance of the policyholders at the meeting, were cast in their favor as directors.

There was judgment dismissing the suit, and plaintiffs have appealed.

When this matter originally came before us, we held that a writ of quo warranto would not issue to try title to an office in a private corporation, this remedy being confined to offices of public corporations. 150 So. 428.

In the petition for rehearing it is pointed out that our decision was based upon the case of Jones et al. v. Carradine, 147 So. 554, where we followed the English and the Massachusetts rule, but that the overwhelming weight of authority of the other states of the Union, including Louisiana, is to the contrary, to the effect that a quo warranto proceeding is the proper remedy to test title to office in a private corporation.

In State ex rel. N. W. Colonization & Imp. Co. v. Huller, et al., 23 N. M. 306, 168 P. 528, 530, 1 A. L. R. 170, the court said:

“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 entirely 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 employment of quo war-ranto 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.”

And in Brooks v. State ex rel. Richards, 3 Boyce, 1, 79 A. 790, Ann. Cas. 1915A, 1133, the Supreme Court of Delaware held that quo warranto was the proper remedy to test title to office in a private corporation. This decision is reported in 51 L. R. A. (N. S.) 1126, where it is followed by a thorough and comprehensive annotation, in which the conclusion as to the law is stated, as follows:

“The Massachusetts courts seem to be the only American courts which follow the English rule. They have held that an information in the nature of a quo warranto is not the proper remedy to try the title to offices in a private corporation. * * *
“All other cases upon the point agree with Brooks v. State in holding that an action of quo warranto, or in the nature of quo war-ranto, is the proper remedy to test the right to an office in a private corporation. * * * ”

In Corpus Juris, vol. 51, p. 318, § 14, we find the following: “Except in some jurisdic *397 tions, quo warranto, or an information or action in the nature thereof, is a proper remedy to try title to office in a private corporation; it is so provided by statute in a number of jurisdictions, and, apart from statute, an office in a private corporation, created and chartered by the state, is deemed to be of a public character, or the public is deemed to have an interest therein, in such a sense and to such an extent as to render the remedy available against a person who, not being lawfully entitled to do so, holds the office.”

See, also, footnote 39(a), vol. 51, C. J., p. 318.

In the case of Wiltz et al. v. Peters et al., 4 La. Ann. 339, a proceeding in which stockholders sought writs of quo warranto to oust bank directors, our Supreme Court, on page 340, said: “As the general rule it may be conceded that, under our legislation, any stockholder has a right to inquire, by the remedy of quo warranto, into the election of those who assume to administer the corporation of which he is a member.”

In State v. New Orleans J. & G. N. R R. Co., 20 La. Ann. 489, the state of Louisiana was a stockholder of the railroad company and petitioned the court for writs of quo war-ranto against various officeholders of the company. The Supreme Court stated that the state should have the same rights and privileges as other stockholders and granted the writ.

In State v. Ramos, 10 La. Ann. 421, it was also decided that the remedy by quo war-ranto is not limited strictly to the cases set forth in the Code of Practice.

Articles 868 and 869 of the Code of Practice, dealing with the subject of the writ of quo warranto, read as follows:

“Art. 868. This mandate is only issued for the decision of disputes between parties in relation to the offices in corporations, as when a person usurps the character of Mayor of a city, and such like. With regard to offices of a public nature, that is, which are conferred in the name of the State by the Governor, with or without the consent of the Senate, or by election, the usurpations of them are prevented and punished in the manner directed by special laws.
“Art. 869. A mandate to prevent the usurpation of an office in a city or other corporation may be obtained by any person applying for it, and the party to whom it is directed must make his answer in writing within the time allowed by the court, and state the authority under which he exercises his office.”. (Italics ours.)

The above language with reference to the office of mayor of a city we believe to be merely illustrative and not restrictive; otherwise there would be no remedy in cases of usurpation of private office, because the law is clear that the question of title to office cannot be determined by a writ of injunction.

See, also, Reynolds v. Baldwin, 1 La. Ann. 165; 22 R. C. L., page 666, § 7; R. C. L. Permanent Supplement, vol. 7, page 5246, § 7; Komarynski v. Popovich, 218 Mich. 481, 188 N. W. 386.

From the above authorities we conclude that in our original opinion and in the case of Jones et al. v. Carradine, suprá, we erred in following the minority view of England and Massachusetts, and that the correct rule is that quo warranto is the proper remedy to test title to office in a private corporation.

We may add that in a well written and carefully considered article appearing in the Tulane Law Review, vol. 8, No. 2, February, 1934, page 187, the author thereof reached the same conclusion as we do, both in his interpretation of the articles of the Code of Practice and with reference to the weight of authority on this question in the United States.

Did the charter and by-laws of the corporation require that the meeting at which the board of directors were to be elected should be held at 4 o’clock p. m.

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152 So. 395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-palfrey-v-simms-lactapp-1934.