Stueve v. Northern Lights, Inc.

797 P.2d 130, 118 Idaho 422, 1990 Ida. LEXIS 142
CourtIdaho Supreme Court
DecidedAugust 24, 1990
Docket18074
StatusPublished
Cited by6 cases

This text of 797 P.2d 130 (Stueve v. Northern Lights, Inc.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stueve v. Northern Lights, Inc., 797 P.2d 130, 118 Idaho 422, 1990 Ida. LEXIS 142 (Idaho 1990).

Opinion

McDEVITT, Justice.

Northern Lights, Inc. (“Northern Lights”) is a rural electric cooperative and an Idaho nonprofit organization. Harold R. Stueve is a member of the cooperative who served on Northern Lights’ Board of Directors from 1981 until 1987. In 1985, the Board adopted a policy to protect the confidentiality of its members’ names, ad *423 dresses, and telephone numbers. This policy was slightly modified at the 1988 annual meeting which Stueve was unable to attend.

Stueve did not approve of the 1988 changes. He was also concerned that certain improprieties occurred in that year’s annual election. Stueve believed that these improprieties were the result of the corporate employees’ ability to exercise inordinate control over management through the electoral process. Because of these concerns, on August 29, 1988, Stueve made oral and written demands upon Northern Lights for the following information:

1. Northern Lights’ voting register for the 1988 annual meeting;
2. Proof of a quorum at that meeting;
3. A list of the proxy holders for the 1988 annual meeting and the number of proxies held by each;
4. A list of all current Northern Lights members; and
5. The minutes of the 1988 membership meeting.

On September 12, 1988, Northern Lights provided Stueve with a copy of the draft of minutes from the 1988 annual meeting, but it denied the balance of his request, claiming that the vast majority of its members regarded that additional information as being confidential.

On December 2, 1988, in response to the Board’s refusal to provide him with all the requested information, Stueve filed a petition for writ of mandate against Northern Lights, Inc., its general manager, Michael G. Fox, and the other members of the Board of Directors. Stueve sought the following relief:

1. Inspection of the voting register for the 1988 meeting, proof of a quorum, a list of proxy holders and the number of proxies held by each at the 1988 annual meeting, and a list of all current Northern Lights members.
2. A penalty payment by each of the defendants of $50.00 per day from August 29, 1988, until the records were provided.
3. Attorney fees.

A hearing on the court’s order to show cause was held on January 17, 1989, after which the court ordered that Northern Lights supply the requested information to Stueve. However, the court specifically declined to award attorney fees or the requested penalty. Stueve filed a motion to alter the judgment, requesting that the attorney fees and penalty be imposed. The court denied this motion and Stueve appeals.

The issues on appeal are whether the penalty provisions of I.C. § 30-1-52 apply to nonprofit corporations and whether the trial court erred in refusing to award Stueve reasonable attorney fees.

I.

PENALTY PROVISION OF I.C. § 30-1-52 APPLICATION TO NONPROFIT CORPORATIONS

In this case it is undisputed that Stueve had been a member of Northern Lights for approximately thirty years, and prior to the commencement of this action had made demands upon Northern Lights for access to its records in order to obtain the information sought by Stueve in this action. Northern Lights denied Stueve’s request, relying on a “policy” which treated most membership related data as confidential.

The statutes applicable to Northern Lights as a nonprofit corporation that are relevant to this action are as follows:

30-319. Books and records. — (a) Each nonprofit corporation shall keep correct and complete books and records of account and shall keep minutes of the proceedings of its members, board of directors, and committees having any authority of the board of directors and shall keep at its registered office or principal office in this state a record of the names and addresses of its members entitled to vote.
(b) All books and records of a corporation may be inspected by any member, or his agent or attorney, for any proper purpose at any reasonable time. In no event shall this right of inspection be *424 held to apply to a corporation which has no members.
30-303. Application of Business Corporation Act. — (a) Each nonprofit corporation shall be governed by the provisions of the Idaho Business Corporation Act except insofar as they may be inconsistent with the provisions of this act.
(b) As applied to nonprofit corporations, the term “shareholders” as it appears in the Business Corporation Act shall be held to include members, and, with regard to quorum and voting requirements, the term “outstanding shares” shall be held to include members.

The above quoted statutes are contained in the Idaho Nonprofit Corporation Act, which regulates nonprofit corporations. Section 30-303 of that Act clearly provides that Northern Lights is subject to the provisions of the Idaho Business Corporation Act, which governs the operations of for-profit corporations, except that where the two statutory schemes conflict, the Nonprofit Corporation Act will govern Northern Lights’ activities.

The pertinent provisions of the Idaho Business Corporation Act are as follows:

30-1-52. Books and records. — Each corporation shall keep correct and complete books and records of account and shall keep minutes of the proceedings of its shareholders and board of directors and shall keep at its registered office or principal place of business or at the office of its transfer agent or registrar, a record of its shareholders, giving the names and addresses of all shareholders and the number and class of the shares held by each. Any books, records and minutes may be in written form or in any other form capable of being converted into written form within a reasonable time.
Any person who shall have been a holder of record of shares or of voting trust certificates therefor at least six (6) months immediately preceding his demand or shall be the holder of record of, or the holder of record of voting trust certificates for, at least five percent (5%) of all the outstanding shares of the corporation, upon written demand stating the purpose thereof, shall have the right to examine, in person, or by agent or attorney, at any reasonable time or times, for any proper purpose its relevant books and records of accounts, minutes and record of shareholders and to make extracts therefrom.

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Related

Gumprecht v. Doyle
912 P.2d 610 (Idaho Supreme Court, 1995)
Lawrence v. Jones
864 P.2d 194 (Idaho Court of Appeals, 1993)
Stueve v. Northern Lights, Inc.
838 P.2d 323 (Idaho Court of Appeals, 1992)
GME, INC. v. Carter
817 P.2d 183 (Idaho Supreme Court, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
797 P.2d 130, 118 Idaho 422, 1990 Ida. LEXIS 142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stueve-v-northern-lights-inc-idaho-1990.