Hardie v. Bulger
Hardie v. Bulger
Opinion of the Court
delivered the opinion of the court.
The demurrer of the appellant to the amendment was properly overruled. Appellant is trustee in a deed executed by the hotel company, to secure the payment of a series of bonds, some of which are owned by the appellant, and some by Howard, who was one of the directors when the resolution of the board of directors was passed authorizing the execution of the mortgage and the sale of the
Neither position is maintainable. The object and purpose of the original bill was to vacate the mortgage for certain reasons therein stated. On this bill an issue of.fact was made, and is yet pending and undetermined. The amendment sets up another and a different state of facts, upon which relief of the same character is sought. The new facts may be inconsistent with the facts stated in the original bill, but they are not inconsistent with the general purpose of the original bill, nor with the relief originally sought. They are facts which might have been consistently averred in the original bill, since they are only inconsistent with the collateral or incidental fact therein stated of the proper organization of the company under its charter.
The objection that the complainants are estopped to deny the validity of the organization of the company depends upon circumstances. They may be estopped as to Hardie, as owner of a portion of the bonds, and not as to him as trustee in the deed for the benefit of Howard, one of the directors and holder of other of the same series of bonds. The rights of Hardie, a stranger to the company, dealing with it as legally organized, and purchasing its bonds in
Whether complainants are estopped to deny the validity of the mortgage and bonds as to Hardie because of his good faith in buying them, and are also estopped as against Howard because of their acquiescence and participation, are questions ujmn which we express no opinion. We cannot look to the testimony taken, on the issue joined on the original bill in determining the validity of the cause of demurrer under consideration.
Since Hardie, as trustee, stands as the representative of himself as an individual and also of Howard, holder of some of the mortgage bonds, and since Howard is also the owner of some of the bonds secured by the second deed of trust, it was competent for complainants, who claim to be interested as stockholders in the • property covered by the two mortgages to proceed in one suit for the cancellation of both incumbrances. When a bill is or is not multifarious is difficult of determination. Indeed the decisions upon the subject are so inharmonious that no rule upon the subject can be said to be clearly announced. The rule, if there be a rule, is that the court will on the one hand refuse to permit distinct and disconnected matters to be combined in one suit to the vexation- and delay of defendants, and on the other will avoid the necessity of a multiplicity of suits, if the general objects of the bill may bead vanced by combining the subjects of controversy; provided there be a common duty in the defendants (not necessarily coextensive with complainant’s right), and a common interest in the complainants. Story’s Eq. PL, §§ 530, 539.
The complainants claim as -stockholders in the hotel company against distinct conveyances of the corporate property made under what they claim to be invalid resolutions of its directors. There seems to us to be a close analogy in this to cases in which creditors of a fraudulent grantor proceed against his grantees holding under' distinct conveyances ; and it is well settled in this state that such defendants may be joined in one suit. Waller v. Shannon, 53 Miss. 500. See also Butler v. Spann, 27 Ib. 234 ; Delafield v. Anderson,
The other causes of demurrer assigned might be disposed of upon the rule that where the demurrer is to the whole bill and is bad as to any part thereof, it should be overruled. But there is another reason why appellant cannot now object by demurrer to the relief sought by complainants against the directors of the hotel company, which is that he has answered instead of demurring to the original bill in relation to such matters.
The decree is therefore affirmed and cause remanded, with leave to appellants to answer within sixty days after the mandate shall have been filed in the court below.
Reference
- Full Case Name
- J. T. Hardie v. M. Bulger
- Cited By
- 5 cases
- Status
- Published
- Syllabus
- 1. Chancery Pleading. Amendment to bill. Different state of facts. A different state of facts from those averred in the original bill may be set up by way of amendment, if the character of the relief sought remains the same, and this, notwithstanding the averments in the amendment are inconsistent with those of the original bill; provided they are not inconsistent with its purpose and the relief originally sought. 2. Same. Bill to cancel mortgage. Amendment. To a bill seeking cancellation of a mortgage for certain alleged reasons, an amendment will be permitted which sets up other and even inconsistent reasons upon which the same relief is prayed. 3. Demurrer to Amendment. Evidence taken prior to amendment not considered. In passing upon a demurrer to an amendment to a bill, the evidence taken on the issues previously joined on the original bill cannot be considered. The court should look only to the original bill and the amendment. 4. Multieariousness. Multiplicity of suits. General rule. Multifariousness cannot be determined according to any clearly defined rule. But it may generally be said that on the one hand distinct and disconnected matters should not be combined in one suit to the vexation and delay of defendants, while, on the other hand, a multiplicity of suits should be avoided where the general objects of the bill may be advanced by combining the subjects of controversy, if th^re is a common duty in the defendants, and a common interest in the complainants. 5. Same. Single suit to cancel distinct conveyances. Case in judgment. Complainants who are interested as stockholders or otherwise in corporate property, may join in a single suit as parties defendant the grantees in distinct conveyances of the said property, which they seek by said suit to cancel because made under an invalid resolution of the directors. 6. Demurrer to Amendment aeter Answer to Original Bill. A defendant cannot demur to an amendment to a bill for reasons that relate to matters which are also set out in the original bill, upon which he has joined issue by his answer on file.