Yantis v. Gulf Coast Rice Farm Co.
Yantis v. Gulf Coast Rice Farm Co.
Opinion of the Court
The plaintiff, D. K. Yantis, and his brother, H. D. Yantis, own 294 of the 300 shares of the capital stock of the defendant corporation, in the proportion of 144 shares to plaintiff and 150 to the brother. Plaintiff is treasurer-secretary, and his brother president.
The property of the corporation consists of a farm of 146 acres in Calcasieu parish and another farm of 2S0 acres in Allen parish about 48 miles apart, all rice land, and some agricultural implements and work stock of little value, and about ISO head of cattle. The two brothers have had a falling out, and plaintiff sues for the appointment of a receiver. In the lower court plaintiff stated that a liquidation would be undesirable— in fact, disastrous — and that what was desirable was the appointment of a receiver to carry on the business of the corporation.
The disagreement between the brothers seems to have arisen out of this cattle branch of the business, of which H. D. Xantis is under the impression his brother is not rendering him a faithful account.
Judgment affirmed.
Reference
- Full Case Name
- YANTIS v. GULF COAST RICE FARM CO.
- Status
- Published
- Syllabus
- (Syllabus by Editorial Staff.) 1. Corporations @=189(10) — Receivership — Mismanagement by Stockholder and Officer. Where' one farm of a rice growing company had been badly infested with red rice, so that it seemed advisable to let it lie idle for a season, or to put in some other crop, and a large stockholder and officer who had management of farm leased it at about highest rent paid in neighborhood, he was guilty of no mismanagement justifying receivership. 2. Corporations @=189(10) — Receivers — Ground for Appointment — Temper of Stockholder and Officer. One of two brothers controlling rice growing company, owning land and cattle worth more than its debts, cannot have receivership because his brother, of quick temper and a “good scrapper,” is persona non grata with some of the bankers of the vicinity, so that it is somewhat more difficult than it might otherwise be for the company to finance itself. 3. Corporations @=189(10) — Receiver- ‘ ship — Ground of Appointment. One of two brothers controlling rice growing company cannot have receivership on ground that his brother does not co-operate with him in procuring funds for feeding the company’s cattle, which might have been secured by selling some of the cattle, as in the past; moreover, if the cattle branch of the business cannot support itself, proper course would be to get rid of it. 4. Corporations @=189(10) — Receivership-Partnership Corporation. Two brothers controlling rice growing company owning land and cattle, which is of recent formation and practically a partnership, furnishing their experience and services gratis, can administer the business more economically, if not better, than a receiver could do, so that there will not be a receiver at the suit of one, in the absence of showing of good cause. O’Niell, J., dissenting.