Court Opinion

ID: 9885844
Source: CourtListenerOpinion
Date Created: 2023-10-06 15:13:19.323028+00
Date Added: 2024-06-11T07:49:17.545857
License: Public Domain

Opinion osr Petition to Reheab.
The only matters presented by this petition which may be said to be new, in the sense of the rules governing petitions to rehear, relate to incidental details of the decree. Extensive and able reargument is made of the controlling questions dealt with in our original opinion, namely, (1) the application of the Blue Sky Law, (2) the effect of the continued occupancy by the grantor of the ■premises, (3) whether the deed was void or voidable, and (4) the allowance of attorney fees. The Court is satisfied with its determination of these main issues for the reasons set forth in the original opinion.
However, to avoid possible misconstruction of language used introductory to the decision of the question of the application of the Blue Sky Law (not strictly necessary to the decision), this is said: The holding was and is that, conceding that the offering of this Company’s stock, or a part thereof, to the public, by its agents, brought this corporation within the letter of the Blue Sky Law, there is nothing in the provisions of the charter indicative of a purpose to engage in the business of selling securities, and there is no proof of knowledge by the mortgagees of the making of sales to the public, so that the mortgagees were not chargeable with either constructive or actual notice of the violation of this law, if violated. The comment made, introductory to this announcement of our decision, suggesting the inapplicability of the law to cases of sales made by a corporation of its own stock to original subscribers incidental to its organization, is not to be understood as holding that a corporation may not in any case subject itself to this law by making sales of its own *348stocks and bonds, that is, those issued by it. The question in each case is whether or not the corporation is (1) either organized for the purpose of selling stocks or. other securities, its own or otherwise, or, (2) engaged in the business of making such sales. Distinguishing analogies are to be found in our cases discussing what constitutes doing business in the State by foreign corporations, and by parties engaging in occupations declared to be privileges.
In reply to the suggestion that the many contra authorities cited by counsel touching the issue of notice to the mortgagees from the continued occupancy of the grantor were overlooked, it may be said that these were examined, but the Court approved the rule laid down in Curry v. Williams, cited, and supported by the cases contained in the note in 13 L. R. A. (N. S.) 117, and others.
The point is made that the corporation did not appeal and was not before this Court, and that the decree should not run against it. Petitioner is not affected and cannot complain. Moreover, since the corporation is confessedly insolvent, this is an immaterial matter.
In effect and essentially the decree is against, the fund in Court, the proceeds of the land, substituted therefor, against which the lien of the mortgagees is sustained and enforced as to principal, interest and attorney fees, according to the contracts. We find no error in the decree for interest, nor are we able to agree with learned counsel that any part of the taxes, á prior lien on the land and the fund, is chargeable to the mortgagees. It results that the petition is dismissed.