Wiltz v. Peters

4 La. Ann. 339
CourtSupreme Court of Louisiana
DecidedMay 15, 1849
StatusPublished
Cited by1 cases

This text of 4 La. Ann. 339 (Wiltz v. Peters) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wiltz v. Peters, 4 La. Ann. 339 (La. 1849).

Opinion

The judgement of the court, (King, J. absent,) was pronounced by

Slidell, J.

The petitioners seek by the present proceeding, which is in the nature of a quo warranto, to oust the defendants, Peters and others, from the-directorship of the Louisiana State Bank. They also ask a mandamus commanding Vignie and others to issue an advertizement far a new election, they being the persons who constituted the board of directors, prior to the alleged illegal election, under color of which Peters and others had assumed to act. All the-directors of the board, except two, have answered': uThat the said board of directors of the Louisiana State Bank did not deem themselves authorized, from the return of the judges of the election, for the election of directors of said bank,, held on the 5th instant ( February, 1849,) to order-a new election of directors-to be made; and could not therefore issue advertisements for another election to-he held; ” Wherefore they say, “ they submit to such judgement and mandate. [340]*340as the nature of the case may require, and as may be finally rendered in the premises. ” The two members of the old board who did not join in this answer, are members ofthe new board; and, as they claim to hold under the new election, must be considered as virtually concurring in the position taken by them associates in the old board. The whole of the former board, therefore, must be regarded as acquiescing in the validity ofthe election of the new bqard and in their continuance in power. It is obvious then, that the contestin this cause is between Dujilho, Wiltz and Dupré, on the one hand, and the newly elected board on the other, who, upon the face of the pleadings, are at least directors de facto, under the color of election.

The first question which demands our consideration is, can the plaintiffs be heard as relators ?

As the general rule it may be conceded that, under our legislation, any stockholder has a right to inquire, by the remedy of quo warranto, into the election of those who assume to administer the corporation of which he is a member. But while the defendants do not dispute the general rule, they contend that a party may have so acted as to render himself incompetent or disqnalified to become a relator. They argue,' “that yvhere the wrong complained of was the result of' the party’s own misconduct or negligence, the court will refuse an application by him, or at his instance; that the law will not permit any one to play fast and loose—to establish, or overturn the effects of 1ns own actions, as may prove most beneficial to him — if it suits him, to take advantage of his own conduct and say nothing —if it does not accord with bis views, to declare his own conduct illegal, and avoid his own acts. ” The authorities cited by the defendants fully sustain this position, and have not been met by any conflicting decisions.

In the case of King v. Clarke, 1 East. 47, it was observed: — “The court have indeed on several occasions said,, and said wisely, that they will not listen to, a corporator who has acquiesced, or perhaps concurred, in the very act, which he afterwards comes to complain of when it suits his purpose.” In Rex v. Stythe, 6 Barn. and Cres. 240, Abbott C. J. says: “It has generally been considered a rule of corporation law, that a person is not to be permitted to impeach, a title conferred by an election in which he has concurred, or the title of those, mediately or immediately derived from that- election. But in order ” said he, “to preyent any misunderstanding upon this point, I will add that, if a person should concur in an election in ignorance of some fact making it invalid, and should afterwards come before the court, and show the objection, and that it has come to his knowledge since the election, and that it is a matter which ought to be enquired into, I would by no means have it inferred from the decision in the present case that, such an application ought not to be heard. ” In the Queen v. Greene, 2 Adolp. and Ellis, 463, Denman, C. J. observed: “ The principle which precludes a party, having acted as the relator did in this instance, from, applying afterwards to set the proceedings aside, is the same which prevails in other-cases, namely, that a man shall not take his chance of inconsistent advantages..” And Coleridge, Justice, on the same occasion, assumed it to be the settled rule, that a man shaE not apply to the court as relator, if he has concurred in the irregularity of which he complains, ” See also AngeE and Ames, on Corp., p. 707.

Without undertaking to say to what extent these opinions would be followed in this countiy in questions concerning municipal corporations, we have no hesitation in recognizing their propriety as applied to private corporations. Such being the well settled doctrine,, it remains to be considered how far it is applicable to the case at bar,

[341]*341The petitioners allege that they were appointed commissioners of election for directors of the bank, and that, acting in that capacity, they received votes to which objection had been made. The certificate which they themselves signed, on the 5th of February, shows that the defendants, who now claim to be the duly elected directors of the bank, obtained a plurality of the votes offered at the election, and received by the plaintiffs themselves in their capacity of judges. It is now charged by the petitioners that a large portion of the votes were not given according to law, and were given by persons not bona fide owners of the shares. But although objections, as it is alleged in the petition, were made at the time, to the reception of those votes, the plaintiffs themselves, whose duty it was to ascertain the disputed legality, received them. Under such circumstances, we are of the opinion that they cannot be heal'd as relators.

It is proper to observe that, although the plaintiffs, as commissioners, acting with the two othev commissioners, Hermann and Rochereau, received all the votes, notwithstanding objections made by stockholders at the time, and signed, on the day of election, a certificate showing the number of votes given to the respective candidates, the three plaintiffs signed, two days afterwards, but without the concurrence of the other two commissioners, a declaration that they decline to certify or declare either ticket elected. But we cannot perceive how this subsequent declaration destroys the effect, of their previous reception of the votes, upon the question of their competency now to impeach, as relators, the legality of those votes. The declaration on the 7th stands in conflict with their-acts on the 5th,

It is also proper to add, in this connection, that the only protest of the stock-, holders against the reception of votes exhibited in the record, is a protest made, by the successful candidates.

We are not to be understood as saying that a party can, in no case, be heard to impeach an election over which he presided, and the legality of votes which he himself, as commissioner, received. A case might occur where the illegality-rested upon facts, as to which the party subsequently complaining was ignorant at the time, and was without the means of knowledge. Consent induced by error is not binding, in tire eye of the law. But the petition contains no such allegation; and no foundation therefore has been laid in the pleadings, nor even, in the evidence, for a departure from a wholesome and equitable general rule.

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Related

State Ex Rel. Palfrey v. Simms
152 So. 395 (Louisiana Court of Appeal, 1934)

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Bluebook (online)
4 La. Ann. 339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wiltz-v-peters-la-1849.