State ex rel. Gilbert v. Union Investment Co.
State ex rel. Gilbert v. Union Investment Co.
Opinion of the Court
This action, which is in the name of the state, on the relation of Henry C. Gilbert, was brought to quiet in said Gilbert the title to certain real property, by procuring the cancellation of a certain deed to said property, executed by the Union Investment Company, a nonresident corporation, on the 24th day of September, 1890, to the defendant Leonard H. Hole. There seems to have been no service of process or appearance upon the part of the defendant corporation, and, although the complaint states that said corporation is exercising franchises and privileges not conferred upon it by the laws of this state, it clearly appears that Henry C. Gilbert is the real and only party in interest, and the cancellation of the deed to Leonard H. Hole is the only relief
The name of the state as a party plaintiff in an action of this character is not contemplated by any provision of the statute, and could not, at common law, be used when the only object of the action was to enforce the private rights of individuals. State v. Keim, 8 Neb. 63; People v. Stratton, 25 Cal. 242; State v. Parkerville & G. R. R. Co., 32 Mo. 496; People v. Pacheco, 29 Cal. 210. Under section 5346 of the Compiled Laws, a civil action in the nature of quo warranto may be instituted in the name of the state by the state’s attorney, on leave of the circuit court or judge thereof, for the purpose of vacating the charter or articles of incorporation, or for annulling the existence of a corporation, other than municipal, whenever such corporation shall exercise a franchise or privilege not conferred upon it by law; and, under section 5347, the court, or judge may direct notice of an application for leave to bring the action in the name of the state to be given to the corporation or its officers, previous to granting such leave, and may hear the corporation in opposition thereto. Where it is claimed, in an action to vacate a charter or annul the existence of a corporation, that said corporation has exercised a franchise or privilege not conferred upon it by law, or has offended against or violated any constitutional provision or statutory requirement, the action must be in the name of the state alone, as the real party in interest, and the offending corporation is the real and only proper party defendant. Code Civ. Proc. c. 26; High, Extr. Rem. 689; Spel. Extr. Rel. 1834; People v. North Chicago Ry. Co., 88 Ill. 537; People v. Stanford, 77 Cal. 360, 18 Pac. 85, and 19 Pac. 693, and numerous cases cited at page 363, 77 Cal. and page 694, 19 Pac.
From the allegations of the complaint, it appears that on the 13th day of December, 1889, the Middlesex Banking Company, fora valuable consideration, sold and conveyed to the Union Investment Company the real property in controversy, and that on the 24th day
Reference
- Status
- Published
- Syllabus
- 1. The name of the state as a party plaintiff is unauthorized in an action to enforce an individual right of a private person. 2. In an action under the statute to vacate a charter or annul the existence of a corporation, the action must be in the name of the state alone, as the real party in interest, and the offending corporation is the only proper party defendant. (Syllabus by the Court.