Boyle

Boyle v. Superior Court

Good Law
176 Cal. 671·1917 Cal. LEXIS 579·170 P. 1140
Supreme Court of CaliforniaDecember 12, 1917S. F. No. 8411.California1,831 words

Opinion

Lead Opinion

Henshaw, J.

Certain stockholders of the Western Magnesite Development Company, a corporation, appealed to equity, charging fraud, dereliction of duty, and violation of trust against two of the directors of the corporation, and prayed for a removal of these directors and for an appointment of a receiver to take possession and charge of the assets and property of the corporation. It was alleged that the Western Magnesite Development Company was a mining corporation owning magnesite claims of large value; that dissension had arisen in the board of directors, which board consisted of but four persons, of whom the defendants Cummings and Wolfe were two; that because of these dissensions and the mutual hostility underlying them, no business of the corporation was performed. The corporation had entirely ceased operations and no longer prosecuted its mining operations. On account of the disputed ownership of over two-thirds of the capital stock it was alleged that it was impossible to hold a stockholders’ meeting for the purpose of electing a new board of directors; that litigation was pending to determine the true ownership of this disputed capital stock.' Other allegations going to the trouble and…

Addendum

On petition for rehearing, it is called to our attention that on August 23, 1917, we made an order transferring the proceeding for prohibition, referred to in the opinion of Mr. Justice Henshaw, to this court for hearing and determination. The order revived the alternative writ of prohibition issued by the district court of appeal, and the restraining effect of such writ will remain in force until this court shall dispose of the proceeding thus transferred, and now pending here. On the merits, the two proceedings—that in prohibition and the present one in mandate—turn on the same legal questions. We are entirely satisfied with the manner in which these questions are disposed of by our opinion herein. But, since the alternative writ of prohibition is still in force, the respondent judge is confronted by two orders, one commanding, and the other prohibiting, certain action. To avoid technical difficulties which may arise, it is ordered that execution of our writ of mandate be stayed until the disposition of the pending proceeding for prohibition.

The petition for rehearing is denied.

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