Title: State Ex Rel. Meade v. Marion Superior Court
Citation: 174 N.E.2d 408, 242 Ind. 22
Docket Number: 29,992
State: Indiana
Issuer: Indiana Supreme Court
Date: May 3, 1961

242 Ind. 22 (1961)
174 N.E.2d 408
STATE EX REL. MEADE
v.
MARION SUPERIOR COURT, ROOM NO. 1., BELL, JUDGE.
No. 29,992.

Supreme Court of Indiana.
Filed May 3, 1961.
Rehearing denied June 23, 1961.
*23 Hagemier &amp; Shannon, Thompson, O'Neal &amp; Smith, Joseph M. Shannon, Patrick J. Smith and James R. McClarnon, all of Indianapolis, for relator.
Hugh A. Thornburg and Maurice R. Petit, both of Indianapolis, for respondents.
JACKSON, J.
Relator has filed an original action in this court for a Writ of Prohibition and Mandate to restrain respondent from proceeding further in cause No. S-60-5156 in respondent court, and to require the respondent, Walter M. Bell, Judge of said Court, to expunge from the records the order requiring the production of certain books and records. We issued the temporary writ.
It appears from the record that the relator is a resident of Marion County, Indiana, is President and a Director of Farm and Home Insurance Company, an Indiana corporation organized and existing under the insurance and corporate laws of this state, and presumably engaged in the insurance business as defined by Acts 1935, ch. 162, § 1, p. 588, being § 39-3203, par. (d), Burns' 1952 Replacement.
It further appears that relator is President and a Director of Farm and Home Agency, Inc., an Indiana corporation, allegedly exclusive general agent for Farm and Home Insurance Company. It further appears that Farm and Home Agency, Inc. owns more *24 than seventy-five (75) per cent of the issued and outstanding stock of Farm and Home Insurance Company, and that the same persons are officers and directors of both corporations.
The original action entitled H.W. McKinney and Rachelie McKinney in behalf of themselves and all other stockholders of Farm and Home Agency, Inc. v. Farm and Home Agency, Inc., Philip H. Meade, et al, now pending in Superior Court of Marion County, Indiana, No. S-60-5156, asks for equitable relief, for an accounting and for the appointment of a receiver.
To this complaint the relator demurred, questioning the jurisdiction of the respondent court over the persons of the defendant, the subject matter of the action and of the case. At the same time relator filed a motion in respondent court requesting the court to expunge from its records the order requiring defendant to produce certain books and papers. Both the demurrer and the motion were overruled by the court. From such adverse ruling stems this original action.
To the temporary writ issued by this court, the respondent filed a verified return averring that the respondent judge was and is the duly elected, qualified and acting judge of the Superior Court of Marion County, Indiana, Room 1, and at all times referred to herein was so acting; that respondent court is a court of record and of general jurisdiction, pursuant to § 4-1401 to § 4-1421, inclusive, Burns' 1946 Replacement, and as such is possessed with full power and jurisdiction, both inherent and statutory, to hear and decide stockholders derivative suits and receivership matters. Respondent also raises the *25 question of relators compliance with Rule 2-35 of the Indiana Supreme Court.
The issues raised in this action present two questions for our consideration:
On the question of jurisdiction, the relator urges that the lower court can not entertain the action there pending in view of the provisions of Acts 1935, ch. 162, § 270a, p. 588, being § 39-5023, Burns' 1952 Replacement, reading as follows:
In passing upon the above question we must of necessity determine whether or not the defendant below, Farm and Home Agency, Inc., is an "insurance company, association, or society, to which any provision of this act is applicable,". (§ 39-5023 Burns' 1952 Replacement, supra.)
We refer to the definition section of Acts 1935, ch. 162, § 3, p. 588, being § 39-3203, Burns' 1952 Replacement, for assistance in ascertaining the intent of the legislature on the question here involved.
Section (a) defines "Insurance" as follows:
Section (d) defines "Company" as follows:
Section (i) defines "agent" as follows:
In view of the unambiguous language of the statute and the legislative intent as evidenced by the definition *27 sections of the Act as above cited we are required to find, and do here so find, that the defendant below, Farm and Home Agency, Inc., does not make insurance within the purview of the Act, but merely acts as agent, broker or representative for the solicitation of insurance business. Hence the lower court had and has jurisdiction to hear and determine the issues raised by the complaint below.
In view of the decision we have reached it is not necessary to and we do not pass on the question as to compliance with Rule 2-35.
The alternative writ heretofore issued is dissolved and a permanent writ is denied.
Bobbitt, C.J., Achor, Arterburn and Landis, JJ., concur.
JACKSON, J.
Relator has filed herein his petition for a rehearing in this cause alleging:
The relator is in error as regards proposition one as stated in his petition for rehearing, as of necessity that question was one of the determinable issues under the very statute on which relator relied, Acts 1935, ch. 162, § 270a, p. 588, being § 39-5023, Burns' 1952 Replacement. The relator in its brief admits that it does not make insurance and therefore is not an insurance company.
Relator, at page five of its brief in support of application for rehearing, sets out that Article 7, Section 5, of the Constitution of the State of Indiana, requires this court to give a statement and decision in writing on questions presented in paragraphs 2(a) and 2(b) of the application for rehearing. The law on this point is very clear, as was decided by this court shortly after the adoption of our present Constitution. The Supreme Court held that Article 7, Section 5, referred only to such questions arising in the record and the decision of which was necessary to the final determination of the cause in the Appellate or Supreme Courts.
For the reasons stated it is unnecessary for this court to decide the issues presented in paragraph 2(a) and 2(b) of relator's application for rehearing.
We further point out that Farm and Home Insurance Company is not a party to this action.
Finally, we can not presume that a receiver of Farm and Home Agency, Inc., if appointed, would interfere with the operation of Farm and Home Insurance Company.
Petition for rehearing denied.
Landis, C.J., Bobbitt, Achor and Arterburn, JJ., concur.
NOTE.  Reported in 174 N.E.2d 408. Rehearing denied 175 N.E.2d 423.