State v. Fredlock

43 S.E. 153, 52 W. Va. 232, 1902 W. Va. LEXIS 26
CourtWest Virginia Supreme Court
DecidedDecember 13, 1902
StatusPublished
Cited by45 cases

This text of 43 S.E. 153 (State v. Fredlock) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Fredlock, 43 S.E. 153, 52 W. Va. 232, 1902 W. Va. LEXIS 26 (W. Va. 1902).

Opinion

POEEENBARGER, JUDGE:

On the 5th day of December, 1900, the circuit eourt of Ohio County entered an order, requiring J. C. Eredloek to appear in that court on the 12th day of December, 1900, to show cause, if any he could, why he should not be attached for his con[234]*234tempt to said court, offered by Ms violation of an order of injunction, made and entered by that court in the chancery cause of the West Virginia Loan Company and others against Mary L. McMechcn and others, restraining the said Fredlock and the Peidmont Feed and Ice Company from further proceeding in a suit in equity, instituted by them in the circuit court of Mineral County, on tho 19th day of December, 1899. On the 6th day of December, 1900, another order was entered, filing certain affidavits and directing the attention of the court to a certain exhibit filed in said chancery suit and again ordering said Fredlock to appear on the 12th day of December, 1900. On said 12th day of December, another order was entered, reciting that the rule awarded on December 5th had not been served, and another rule was awarded requiring Fredlock to appear, on December 21st, to show cause, etc. This last order was served and Fredlock appeared on the 2nd day of March, 1902, and filed his answer in writing and moved that the rule be dismissed. The court overruled the motion, found Fredlock guilty and entered a judgment against him, imposing a fine of fifty dollars, and awarding an attachment to hold him until the fine and costs should be paid, and further ordering that he cease from all further proceedings in said chancery suit, and cause the proceedings therein to be stayed, and that he attached until he shall have complied with the order. To this he has obtained a writ of error and supersedeas.

To the end that the ground upon which it is claimed the judgment is erroneous may be clearly understood, it is necessary to set out the facts and proceedings leading up to it. The West Virginia Loan Company was a building association, organized in 1896. For two years or more, it carried on an extensive business, having numerous stockholders and borrowers in various parts of the State and outside of it. The plaintiff in error was a stockholder and borrower to the amount of several thousand dollars. On the 5th day of October, 1898, a meeting of the stockholders was held, and a resolution adopted, providing for the voluntary dissolution of the corporation, it having been ascertained that the business could not be profitably prosecuted any further. At March rules, 1899, of the circuit court of Ohio County, the West Virginia Loan Companjr, James B. McKee, president of said company, Julian G. Hearne, Al[235]*235fred Pauli, George Hook and J. T. Carter, members of the board of directors, filed their bill in equity to wind up the business and affairs of said corporation, making all its stockholders, and others interested, parties thereto. Process issued thereon March 6, 1899, but was not executed as to all the parties. Other process was issued from'time to time to bring them all in and service was finally made oh Fredlock on the 9th'day of September, 1899, the summons served upon him having been issued on the 18th day of August, 1899. It seems that, on the 30th day of March, 1899, there was a meeting of some of the stockholders, for the purpose of attempting to continue the business of the corporation, at which some of those who were directors were removed, and J. C. Fredlock, E. B. Carney, Ralph Broad-water, George W. Dusch and J. T. Carter were elected to fill the vacancies, who, together with J. G. Hearae and F. D. McCoy, who were not removed, made the Ml number of directors. On the 4th day of April, 1899, five'of those held a meeting, at which they removed from the office of president, James B. McKee, and elected E. B. Carney, and Ralph Broadwater was elected vice-president. George W. Dusch was elected secretary pro fern, and F. D. McCoy was elected treasurer. Then a resolution was adopted providing for the service of notice upon McKee, Hook and Pauli, that they had been removed from their offices, and upon W. G. Wilkinson, the secretary, to the effect that he should proceed to discharge his duties as such secretary. Another resolution was adopted providing for notice to the attorney of the corporation to the effect that he should not further represent it in any suit then pending wherein it was interested, and another, authorizing the president and secretary pro tem to employ another attorney and institute such proceedings as should be necessary to obtain possession of the office, books, papers, funds and other property of the corporation. All these motions were either made or seconded by said Fred-lock.

The plaintiff in error had borrowed three-thousand and five hundred dollars from the building association and secured the payment of it by a deed of trust upon his real estate in Mineral County. This represented thirty-five shares of stock. He held an additional sixty-five shares of stock, and on these he had borrowed seven hundred dollars, for which he had exe-[236]*236euted his note and transferred said sixty-five shares to the association as collateral security. On this stock and on account of interest and premiums, he had paid to the association about two thousand and eight hundred dollars. It seems that, after the adoption of the resolution providing for the dissolution of the corporation, he purchased ten shares of stock from Carrie Barker, ton from M. D. Kern, and five from R. II. Helferstay, on which there had been paid about five hundred dollars. In September, 1898,' he endeavored to obtain a settlement with the association by setting olf against his indebtedness the withdrawal value of all these shares of stock, and paying the difference, but the representatives of the association declined to settle with him on that basis. On the 24th day of July, 1899, Fredloek conveyed to the Peidmont Feed and Ice Company, a corporation, organized by himself, W. W. Kerns, and David Brandenbury, who had been employes of his at his livery stable, Carrie Barker, who had been employed by him as bookkeeper and Taylor Morrison, who was his legal adviser in reference to his business with the building association, the real estate upon which ho had secured the three thousand and five hundred dollars, borrowed from the association. The dues, interest and premium on his stock and- loan having become in arrears, the association caused said real estate to be advertised for sale on the 23rd day of September, 1899. On the 19th day of September, Fredloek and the Peidmont Feed and Ice Company presented to the judge of the circuit court of Mineral County, their bill in equity, -setting out, among others, the facts hereinbefore stated, and praying an injunction to prevent the sale of said real estate, and that an account might be taken to ascertain the indebtedness of Fredloek to the association, and that any illegal or usurious premium, interest or other charges made against him on account of said loans might be deducted. On the 9th day of February, 1900, the circuit court of Ohio County enjoined Fredloek and the Peidmont Feed and Ice Company from proceeding any further on said bifl filed in the circuit court of Mineral County until the further order of said circuit court of Ohio County, and said injunction was served upon them on the 12th day of February, 1900. It appears from the affidavit of W. C. Clayton, who represented the building association in Mineral County, that, at [237]

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Bluebook (online)
43 S.E. 153, 52 W. Va. 232, 1902 W. Va. LEXIS 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-fredlock-wva-1902.