State ex rel. Sleeth v. Gordon

87 Ind. 171
CourtIndiana Supreme Court
DecidedNovember 15, 1882
DocketNo. 8958
StatusPublished
Cited by7 cases

This text of 87 Ind. 171 (State ex rel. Sleeth v. Gordon) is published on Counsel Stack Legal Research, covering Indiana 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. Sleeth v. Gordon, 87 Ind. 171 (Ind. 1882).

Opinion

Niblack, J.

This was an information in the name of the • State, in the nature of a quo ivarranto, on the relation of Andrew R. Sleeth, William B. Fox, Hiram Bass and James Robbins, against Leonidas Gordon, Leandor Kennedy, Joseph Little, Michael Hinds, Loretta Cory, Isaac N. Wilson, William Gordon and William Kaster, charging, and giving the court to understand and to be informed, that the defendants were and for a long time had been unlawfully exercising the powers of, and acting as, a corporation in the county of Shelby, under the name and style of The Shelbyville and Morristown Turnpike Company, pretending to have been organized in that name according to and under the provisions of an act of the General Assembly of this State entitled “An act authorizing the construction of plank, macadamized and gravel roads,” approved May 12th, 1852; that the defendants, claiming to be such a corporation, were exercising control over, and had been and were demanding, as well as collecting, tolls [172]*172for travel on and upon a turnpike road situate in said county of Shelby, and were contracting and being contracted with as such corporation, when in truth and in fact there was and had been no such corporation, because the persons who attempted to organize themselves into a corporation under the name and style herein above stated, for the purpose of constructing and. owning a gravel road, amongst whom were the relators above named and the defendants, did not unite in any articles of association, setting forth the line of route and the places to and from which it was proposed to construct the road, and did not file a copy of any articles of association in the recorder’s office of Shelby county, that county being the one through which the proposed road was to pass; also, because in the pretended articles of association in which such persons did unite, the line of route and the places to and from which it was proposed to construct the road were not described, and a copy thereof was not filed in the said recorder’s office of Shelby county, through which said road Avas to pass, Avhich last named pretended articles of association AA'ere entered into on the 21st day of February, 1861 ; that the defendants were claiming and exercising the rights of a corporation underand by virtue of such pretended articles of association, and under no other authority, Avhen in truth and in fact no corporation Avas legally formed by virtue of said so called articles of association ; that the relators Avere the OAvners and holders of stock in the pretended corporation, knoAvn as The Shelby ville and Morristown Turnpike Company, and as such Avere liable for the acts done by, and contracts made in the name of, such pretended corporation. Wherefore the complaint prayed that the defendants might be required to show by AAdiat authority they AA^ere exercising the powers of a corporation, and, also, demanded a judgment of ouster, and all other proper relief. 2 R. S. 1876, p. 298, sec. 749.

The defendants demurred to the complaint, alleging, First., That the relators had no legal capacity to prosecute this action. Second. That the complaint did not state facts sufficient to [173]*173constitute a cause of action; and the court sustained their demurrer. The relators declining to plead further, final judgment was rendered upon demurrer for the defendants. This appeal, consequently, brings before us only the question of the sufficiency of the information.

It is argued, in the first place, that the facts averred did not show the relators to have such an interest in the subject-matter of the action as entitled them to file an information in this case; that, having participated in the organization of_ the so called pretended corporation, and having become stockholders therein, the relators are now estopped from complaining that no such corporation was in fact organized; that, having participated in the acts and things necessary to form and to continue the organization in existence as a corporation de fado, up to the present time, the relators are not now entitled to a judgment of ouster against those specially in charge of the organization as a mere precaution against some mismanagement in the future.

This argument, in connection with others of a kindred character, involves an enquiry which might become one of very considerable interest in a proceeding like this, but the conclusion we have reached in this case, in some other respects, rendei’s it unnecessary that we shall make a formal ruling upon any of the objections urged against the authority of the relators to prosecute this or any similar action.

It is argued, in the next place, that, waiving all other objections which might be urged, the relators are barred from the prosecution of this information by lapse of time. This objection also involves an enquiry which might be made to take a very wide range, and raises a question upon which it is difficult to formulate any well defined rule, inferable from the decided cases.

This difficulty is greatly promoted by the fact that very nearly all the objections to the sufficiency of the informations to which our attention has been directed were made upon motions for leave to file an information, the granting or with[174]*174holding of such a motion being usually treated as a matter resting in the sound discretion ,of the court, a practice which does not prevail ■ in this State where a demurrer affords the first opportunity of raising the question of the sufficiency of an information-.

High, in his work on Extraordinary Legal Remedies, in reference to proceedings like the one under review, at section 659, says: “Long acquiescence on the part of corpora-tors in the exercise by respondents of a corporate franchise may be sufficient to bar them from relief by information, and the fact that they show no right in themselves or in any other persons which depends upon their invalidating respondents’ title is an important element in determining whether leave shall be granted to file the information, and these circumstances combining the application will be denied. * * * So the fact that the relator stands in the same situation with the respondent, and that the impcaching of respondent’s title must necessarily dissolve the corporation, are proper circumstances to be taken into consideration by the court in refusing the application.” Angelí & Ames on Corporations, at section 743, lays down the rule that an information in the nature of a quo warranto will be refused when the right of the defendant has been acquiesced in for a length of time.

At common law the time within which the title to a corporate office might be impeached was indefinite, varying with the circumstances of each particular case. At length, however, the court of King’s Bench set a limit to their discretion, and, in the famous "Wmchelsea causes, publicly declared their resolution to be that after twenty years of unimpeached possession of a corporate franchise no rulo would be granted against the person in possession, to show by what right he held the franchise. That period of time was fixed in analogy to other cases of limitation.

Lord Mansfield, in announcing their resolution, in the name of the court, said “ that twenty years was the ne plus ultra, beyond which the court would not disturb a peaceable [175]

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Bluebook (online)
87 Ind. 171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-sleeth-v-gordon-ind-1882.