Morrill v. Little Falls Manufacturing Co.
Morrill v. Little Falls Manufacturing Co.
Opinion of the Court
For the third time this case makes its appearance in this court, it being reported first in 46 Minn. 260, 48 N. W. 1124, and the second time in 53 Minn. 371, 55 N. W. 547. The nature of the action, the condition of the pleadings, and so much of defendants’ history as was deemed pertinent, were fully detailed in the opinion last referred to. The validity of what is known as the Thayer meeting or organization of 1881 was there affirmed, and, as a result, that the deeds executed by the officers of the corporation in 1882 were, at most, only voidable at the seasonably instituted suit of stockholders claiming to have been defrauded. It was also held that where, as in this case, a defendant sought the affirmative relief of having the voidable instrument set aside on the ground of fraud committed more than six years prior to the commencement of the action, he must allege and prove that the facts constituting the alleged fraud were not discovered by him until within six years. And it was further held that there was not a word of evidence in the record as to when defendants Bullen and Mayhew discovered the facts on which they based their claim of fraud. These and other propositions brought the case down to a consideration of the deeds made in 1886 and 1887, the answer being silent as to those deeds; and it was said that if they were the deeds of the corporation, but voidable because fraudulent, it was required of said defendants, the present appellants, if they wished to have them set aside for that reason, to allege the facts constituting the fraud, and to ask appropriate relief. These views left open to them a single question, and that was wrhether the conveyances were the deeds of the corporation, and this depended on who were elected directors at the annual 1883 meeting of the stockholders. On examination of the record, we failed to find any competent evidence that the so-called Morrill directors were elected at that meeting. As the burden of proof was on the plaintiff to prove the election of the officers through whose deed he claimed title to the land in dispute, and he had failed to do
We now come to the question of whether these conveyances should have been avoided and set aside on the ground of fraud. As before stated, the original answer was silent as to these deeds, and it was only by amendments to the answer, in August, 1893, and again by amendment, in October, 1893, that they were questioned. So that the cross action set up by amendments, whereby appellants sought affirmative relief from these conveyances, because fraudulent, was not commenced within the period of six years from the time of the execution and delivery thereof. The court found that the appellants had not by their evidence brought themselves within the rule established by the statute of limitations allowing an attack upon the deeds on the ground of fraud. In other words, that the appellants had failed to show, as it was necessary for them to do, that the facts on which they relied as constituting the fraud had been discovered by them within six years prior to the instituting of their cross action, the rule being stated in the opinion in 53 Minn, and 55 N. W. We have carefully examined the evidence as to this point, and are convinced that the finding cannot be disturbed. Taking appellants’ testimony, as a whole, with regard to when they learned of the facts, it was of a negative character, and left what they knew and when they were first informed of the facts very uncertain and doubtful. The testimony produced by the plaintiff on this point conflicted with that of appellants’, and we are not to consider the weight of evidence on appeal. Where it is conflicting, a finding by the trial court must stand.
Again, it is to be noticed that plaintiff’s title to all of the lands described in the complaint, except the town lots, which lots were laid out and platted on governmental subdivision section 8, was derived from sources independent of the defendant company, in some instances through valid execution sales made of the company’s property, years before, to satisfy judgments against it, and in others through valid tax proceedings, certificates, and notices of expiration of redemption. It is also true that all lands claimed by appellants to have been the subject of plaintiff’s fraudulent acts were included in the Eustis deed of 1882, except lot 1 of section 18. The plaintiff’s title to the lands conveyed by the 1882 and 1883 deeds did not
Judgment affirmed.
Concurring Opinion
I concur in the foregoing opinion, for the reason that the decision of this court in the former appeal (53 Minn. 371, 55 N. W. 547) must be taken as the law of this case. But it seems to me that, after a corporation' has voluntarily abandoned its organization for 17 years, stockholders representing a minority of the stock have no right, without notice, to meet on the day which would
Reference
- Full Case Name
- ASHLEY C. MORRILL v. LITTLE FALLS MANUFACTURING COMPANY and Others
- Status
- Published