Opinion ID: 2215298
Heading Depth: 1
Heading Rank: 3

Heading: was golden's action barred by laches?

Text: To support a determination that laches bars Golden's action it must be found that he had full knowledge of the facts upon which the action is based, that regardless of this knowledge he engaged in an unreasonable delay before commencing the suit and that allowing him to maintain the action would prejudice other parties. Federal Home Loan Bank Board v. Elliott, 1967, 9 Cir., 386 F.2d 42, citing 13 Fletcher Cyclopedia Corporations (Perm.Ed.) § 5874, p. 279; cert. den., Elliott v. Federal Home Loan Bank Board, 390 U.S. 1011, 88 S.Ct. 1260, 20 L.Ed.2d 161. Laches does not depend on the passage of time alone; the plaintiff must be chargeable with lack of diligence in failing to proceed more promptly. Chicago and Northwestern Railway Company v. Gillis, supra . In January of 1971, shortly after learning of the corporation's proposed transaction with Cannon, Golden notified Cannon of his interest in the corporation. Within a matter of weeks, on the motion of Donald Emmick and the corporation, he was judicially restrained from taking any further action to protect this interest. He did, however, continue his efforts to obtain a clarification of the 1970 judgment. It is undeniable that a lengthy delay ensued from the time Golden learned the facts surrounding the sale of corporate assets until he filed suit in May of 1974. It is equally undeniable that the respondents have made major changes in their positions since the sale agreement was reached in March of 1970 and that they would suffer financial setbacks if Golden were allowed to maintain the action and prevailed. But the record is clear that the respondents must share the responsibility for delay and the hardships resulting therefrom. They did not apprise Golden of the proposed sale even though he was a shareholder of record. He did not acquire knowledge of the sale until nearly a year after the agreement was adopted by the members of the corporation. He was then restrained from asserting his interests by legal action instituted by the Emmicks. In a case such as this, wherein at least part of the delay is attributable to the defendants, or when the defendants have engaged in concealment, misleading tactics and misrepresentation, laches is not available as a defense. Miller v. Miller, 1951, 153 Neb. 890, 46 N.W.2d 618; Holden v. Construction Machinery Company, 1972, Iowa, 202 N.W.2d 348. The law will not sustain the defeat of Golden's claim because of a delay to which the respondents made a substantial contribution.