Swift v. State ex rel. Richardson

6 A. 856, 12 Del. 338, 7 Houston 338, 1886 Del. LEXIS 4
CourtSupreme Court of Delaware
DecidedJune 15, 1886
StatusPublished
Cited by26 cases

This text of 6 A. 856 (Swift v. State ex rel. Richardson) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swift v. State ex rel. Richardson, 6 A. 856, 12 Del. 338, 7 Houston 338, 1886 Del. LEXIS 4 (Del. 1886).

Opinions

Saulsbury, Chancellor,

delivered the opinion of the court:

The case comes before us upon a writ of error to a judgment of the Superior Court of. this State in and for New Castle County, in favor of David M. Richardson against William H. Swift, president of the Diamond Match Company. Eichardson was the holder and owner of shares of stock in the Diamond Match Company, a corporation under the laws of Connecticut. Swift was a director and president of said company, and resides in this State.

As a stockholder in said company, Richardson applied to Swift for permission to inspect and take copies of certain papers and documents in his possession, for a purpose which he alleged was necessary and proper, and material to his interest as a stockholder in said company. Inspection was not refused, but permission to make copies or memoranda of said papers and documents was refused. Thereupon Richardson presented his petition to the court below, praying said court to award a writ of mandamus against Swift, commanding him to suffer and permit said Richardson to inspect and make copies of the instruments, books, papers, and writings in his custody or control belonging to the said Diamond Match company, to wit:

1. All contracts and agreements for the purchase, by or on [341]*341behalf of the said Diamond Match Company, of match factories, and other property relating to the same, prior to January 1, 1881 j

2. All instruments in writing conveying or assigning to said company, or other persons in its behalf, property, rights, or franchises relating to the manufacture of matches prior to said last mentioned day.

3. All contracts, agreements, or conveyances relating to said purchase of property by or on behalf of said company, other than for materials or supplies in the usual course of its business prior to said last mentioned day.

4. All bonds, contracts and agreements, not to engage in the match business, made to or with said company prior to said last mentioned day.

5. All books, papers and writings of said company, showing the net earnings of the company for and during the. years 1881 and 1882.

To Richardson’s petition Swift filed an answer, in which he . does not deny that the papers and documents mentioned in Richardson’s petition, and sworn to be in his possession, were in his possession at the time of the service of the writ or were then in his possession, but states:

That the law of the said State of Connecticut, under which said corporation was created and exists, provides that ‘ The statements and books of every such corporation shall be kept in the town where it is located, and shall, at all reasonable times be open to the inspection of its stockholders; and as often as once in each year a true statement of the accounts shall be made and exhibited to the stockholders.’ And the said law further provides 1 That the president and treasurer of every joint stock corporation shall annually, on or before the 15th day of February or August, lodge with the town clerk of the town in which said corporation is located, a certificate, signed and sworn to by him, showing the condition of its affairs, as nearly-as the same can be ascertained, on the first day of December or January, or on the first day of June or July, next preceding the time of making such certificate, in the following particulars, to wit: 1. The amount of the capital stock actually paid in; 2, the cash value of its real estate; 3, the Cash value of its personal estate, exclusive of patents; 4, the amount of [342]*342its debts; 5, the amount of its credits; 6, the name, residence and number of shares of each stockholder.'”

The defendant, Swift, also in his answer says:

“ That, in conformity to the provisions of the said law, as aforesaid, the statement and books of the said corporation have been and are now kept in the town of New Haven, where it is located as aforesaid, and have been at all times and are now open to the inspection of any of the stockholders; and that, in the month of February in each year since the organization of said* corporation, the certificates required by said law, as aforesaid, signed and sworn to by the president and treasurer of said corporation, have been duly lodged with the town clerk of said town of New Haven, and duplicates thereof, made and sworn to as required by said law, have been lodged by them, as aforesaid, with the secretary of the said State of Connecticut; and that in all respects the requirements of the said law, as set forth in the relator’s exhibit B? have been fully and faithfully complied with by the said corporation and its officers, and that the said statements and books were not, at the time of the filing of said petition, or at any time since, in the custody or possession of the said "William H. Swift.”

Now, it will be observed that the relator’s exhibit B, in respect to which Swift in his answer says that the requirements of the law have been fully and faithfully complied with by the said corporation and its officers, relates only to: 1, the amount of the capital stock actually paid in; 2, the cash value of its real estate; 3, the cash value of its personal property, exclusive of patents; 4, the amount of its debts; 5, the amount of its credits; 6, the name, residence, and number of shares of such stockholders. And it was in reference to these that Swift says that “ The'said statements and books were not, at the time of the filing of the said petition, or at any time since, in the custody or possession of the said William H. Swift.”

He nowhere makes a similar declaration in respect to the documents and papers, an inspection of which, and the privilege of making copies of which, was demanded of him by the relator, and the privilege of taking copies of which was refused by him. This will appear manifest from the answer of Swift to the petition filed in the court below. He therein says that "This respondent is with[343]*343out authority from said corporation to permit, and is expressly prohibited by said corporation from permitting, the said relator to make copies of its books, papers, or instruments of writing, which may be in his custody or control as president of said corporation, for the purposes mentioned in said petition, unless required so to do by the laws of the State of Connecticut, under which the said corporation exists,”

He further says that “ To allow copies of all the instruments, bonds, contracts, agreements, books, papers or writings belonging to the said corporation, and mentioned in said relator’s petition, to be made by the relator for use and publication in his said suit, would greatly impede, hinder and obstruct the conduct of the business of the said corporation, and injure and greatly damage the interests of the same, and of its other stockholders.”

From this, also, it appears that the papers and documents mentioned in the relator’s petition as in the possession of the said Swift, and the privilege of taking copies of which was demanded by him, and refused by the said Swift at the City of Wilmington, where they were in said Swift’s, possession, were not the same as those required to be kept in New Haven by the Act of the State of Connecticut under which the Diamond Match Company was organized, and were not the same statements and books as those mentioned in the relator’s exhibit B, which Swift in his answer says were not, at the time of the filing of the "said petition, or at any time since, in the custody or possession of the said William H. Swift.

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Bluebook (online)
6 A. 856, 12 Del. 338, 7 Houston 338, 1886 Del. LEXIS 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swift-v-state-ex-rel-richardson-del-1886.