Boothe v. Summit Coal Mining Co.

Citations

• 63 Wash. 630
• 116 P. 269
• 1911 Wash. LEXIS 1257

Syllabus

<p>Corporations — Actions Between Stockholders — Accounting— Receiver — Injunction. Where there was a deadlock between two equal stockholders of a corporation, an action to settle their rights, appoint a receiver, and wind up the corporation should be allowed to go to final adjudication before requiring a sale of the assets, unless necessity therefor exists; and it is error, upon appointing a receiver, to direct a sale and enjoin the parties from taking any steps in the proceedings to secure an accounting and determine the rights and equities of the parties.</p> <p>Same — Rescission—Sale oe Property — Necessity. Where an action is brought by one of two equal stockholders of a corporation, the plaintiff alleging his exclusion from control, and mismanagement and failure to account by the defendant, and a receivership and accounting is asked, it is error to order a receiver’s sale of all the assets of the corporation, consisting of real estate and mining machinery, before the accounting is had and the rights and equities of the parties are adjudicated, where there appears no probable depreciation in the value of the property, especially where the defendant is indebted to the corporation, and has not made payments ordered by the court, and the plaintiff would be at a disadvantage in bidding at the sale until the purposes of the receivership have been accomplished.</p>