Umatilla Water, Users' Ass'n v. Irvin

108 P. 1016, 56 Or. 414, 1910 Ore. LEXIS 187
CourtOregon Supreme Court
DecidedMay 31, 1910
StatusPublished
Cited by6 cases

This text of 108 P. 1016 (Umatilla Water, Users' Ass'n v. Irvin) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Umatilla Water, Users' Ass'n v. Irvin, 108 P. 1016, 56 Or. 414, 1910 Ore. LEXIS 187 (Or. 1910).

Opinion

Mr. Justice McBride

delivered the opinion of the court.

1. Plaintiff in this case disclaims any attempt to try the title to the offices claimed by Newport, Yates, and Skinner, which for convenience we shall designate as the “Newport Board” and those claimed by Irvin and McNaught, who, with Crawford and Sommerer, their title being undisputed, we shall designate as the “Irvin Board.”

It is contended that the Newport Board, with Yates as secretary, constitutes the de facto officers of the corporation, and that this suit is merely to prevent persons claiming title to these offices from interfering with them in the discharge of their duties. We are cited to several cases where persons in the actual, physical possession of an office, like a clerk’s or other office of like character, have invoked the aid of equity to avoid being dispossessed. Other cases are cited where persons holding a regular [419]*419certificate of election and engaged in the actual performance of the duties of an office have invoked equity to prevent a claimant from ousting them by force pending proceedings by quo warranto or otherwise. But in this case' the officers, whose tenure is disputed, are not plaintiffs. No member of the Newport Board is in court for himself, asking that he be protected in his position, as director or other officer- It is the corporation that asks the aid of equity to protect it from persons who, it claims, are not properly elected, and who are alleged to be interfering with its regular or de facto officers in the discharge of their duties. Both parties admit that the same person is treasurer, and plaintiff does not allege that money collected by the Irvin Board is being appropriated to any improper purpose or to any end different from that to which it might be applied if the Newport Board had collected it. Barring the confusion of having two alleged boards of directors, each claiming authority to act for the corporation, no injury is shown to have resulted to plaintiff from defendants’ claim to be the actual officers of the corporation.

The cause of the peculiar situation in which the plaintiff corporation finds itself arises primarily out of a disputed election of directors held on January 9, 1909. The plaintiff corporation is an association of landholders within the irrigation district covered by that irrigation project of the United States reclamation service known as the “Umatilla Project,” and had entered into a contract with the United States for the collection and payment of all charges against its stockholders made under the federal statutes for work done by the United States in connection with its system of water supply. Under some regulation of the government, assessments are made against irrigated lands by units, each unit being composed of lands in a particular locality supplied by its irrigation system and presumably organized with reference to the [420]*420time when water could be supplied to that locality. The Hermiston unit was the- first that the government attempted to supply with water. The reclamation authorities in the year 1908 levied an assessment of $7.00 per acre upon the lands embraced in the Hermiston unit, which assessment, plaintiff alleges, would become enforceable by foreclosure on the property on December 1, 1909. After this assessment had been levied by the Secretary of the Interior, and on November 10, 1908, plaintiff’s board of directors levied an assessment of $7.00 per share on the land embraced in the Hermiston unit and declared it due and payable December 1, 1908. At the stockholders’ meeting January 9, 1909, the right of the stockholders who had not paid this assessment to vote on the election of officers was challenged, and Irvin, president of the corporation, ruled that such stockholders could not vote and refused to count their ballots. An appeal was taken from this decision,, and, by a vote of the meeting it was overruled. Notwithstanding this action of the meeting, the president refused to allow the ballots of such alleged delinquent stockholders to be placed in the ballot box or to be counted, but counted only those ballots which were cast by stockholders who had paid their assessment. This count would elect the Irvin Board of Directors while a count including the ballots cast by the alleged delinquent stockholders would, have elected the Newport Board. There is some conflict in the evidence as to what occurred subsequent to the count, but we are satisfied that at its conclusion, as above stated, the president declared that the Irvin Board was elected; sat down, and began to write a certificate of election. The paper was taken from him by violence, and he left the room, taking the ballot box with him. A mob followed him, and demanded the box, and he finally surrendered it to a son of Mr. Newport, who was a deputy sheriff. The meeting then re-organized, and elected Mr. Newport, who was vice-president, president [421]*421pro tem., and proceeded to recount the vote, counting those ballots which had been rejected by the president. Under this count, the Newport Board was declared elected, and Newport, as president pro tem., issued to them a certificate of election. Irvin issued like certificates to the Irvin Board. Crawford and Sommerer, who were elected by both parties, chose finally to act with the Irvin Board. Thereafter the Irvin Board elected Irvin president and Upthegrove secretary, and the Newport Board elected Newport president and Yates secretary. Both boards elected Swayze treasurer, and both now claim to be the genuine board of directors of plaintiff. We cannot agree with counsel for plaintiff in the contention that the president has no power to decide who are eligible to vote for directors. On the contrary, we hold that he has that power, and that for an erroneous exercise of it there is no remedy except by appeal to the courts. Section 5062, B. & C. Comp., provides that the president of the corporation shall act as inspector of elections and certify who are elected directors. For that purpose he is a public officer, designated by a public statute, and in our opinion has the same authority in the matter of receiving and rejecting votes that a judge or inspector of a general election has. There is no reason given for an appeal from his decision to a vote of those present and claiming a right to vote that could not be urged in favor of the same procedure at a general election. To permit such an appeal to those present and claiming the right to vote would in effect allow persons to be judges of their own qualifications and place the election of directors at the mercy of any body of persons who saw fit to make a claim, however groundless, of the right to participate in the election.

The cases cited by counsel do not bear out their contention. In the case of In re Martin (State v. Chute) 34 Minn. 135 (24 N. W. 353), there was nothing in the law or the charter of the corporation designating who should [422]*422pass on the eligibility of voters, and for that reason it was held that such question was for the meeting as a whole, and that the president had no authority to decide it. The court puts its decision squarely upon the ground that no provision had been made by the charter or the by-laws, authorizing the president to act as teller or inspector or to pass on such questions. By implication, at least, they would seem to be of the opinion that with a provision of the character found in our statute the contrary rule would obtain. In State ex rel. Ryan v. Cronan, 23 Nev. 437 (49 Pac. 41) the court followed In re Martin (State v.

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Bluebook (online)
108 P. 1016, 56 Or. 414, 1910 Ore. LEXIS 187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/umatilla-water-users-assn-v-irvin-or-1910.