Rumney v. Detroit & M. Cattle Co.

• Decision Date: 19 April 1898
• Citation: 74 N.W. 1043,116 Mich. 640
• Parties: RUMNEY v. DETROIT & M. CATTLE CO. ET AL.
• Court: Michigan Supreme Court

74 N.W. 1043

116 Mich. 640

RUMNEY v. DETROIT & M. CATTLE CO. ET AL.

Supreme Court of Michigan

April 19, 1898

Appeal from circuit court, Wayne county, in chancery; Willard M Lillibridge, Judge.

Bill by John G. Rumney against the Detroit & Montana Cattle Company and another. From an order appointing a receiver, defendants appeal. Reversed.

Elliott G. Stevenson, for appellant Detroit & M. Cattle Co.

Russel & Campbell, for appellee.

HOOKER J.

The complainant, John G. Rumney, is a stockholder of the Detroit & Montana Cattle Company, which is a Michigan corporation. He owns 512 out of 4,000 shares of a capital of $100,000. He is also a member of the Rumney Land & Cattle Company, which has or had contract relations with the Detroit & Montana Cattle Company, and has pending litigation concerning them. Charles F. Hammond is a stockholder, as representative of his father's estate, in the Detroit & Montana Cattle Company. Complainant's bill states that he has control of a majority of the stock. The business of the Detroit & Montana Cattle Company consists of the raising of cattle in Montana, where it has had large herds for several years, and still has a considerable number, in charge of the Rumney Land & Cattle Company, which is under contract obligations to care for and market the same. Each company claims that the other is its debtor. The bill of complaint is filed against Hammond and the corporation, to enjoin Hammond whom it alleges to be in absolute and full control of its affairs, from disposing of any property or money in his hands belonging to the Detroit & Montana Cattle Company, to procure the appointment of a receiver of the assets of said company, to obtain an accounting by said Hammond, to compel the turning over to the complainant of his shares of stock, now in the custody of said company, and held by it for the security for the performance of the contract made by the Rumney Cattle Company, and to wind up the concern and distribute its assets. The application for a receiver pendente lite was heard upon the bill, and answers in the nature of a cross bill, which also prays accounting between the parties, and upon affidavits permitted to be filed at the hearing, and an order was made for the appointment of such receiver. The defendants have appealed. It seems to be conceded that the application is here upon its merits.

The bill charges Hammond with fraudulently procuring himself to be...