115 N.J. Eq. 448 | N.J. Ct. of Ch. | 1934
After final hearing and the filing of the court's opinion in this cause (
The application is made under paragraph 3 of chancery rule 13, the petitioner claiming to have "an interest or title which the decree will affect;" and it is contended in support of the petition, that upon a prima facie showing of an interest which will be affected by the decree, the petitioner's right to intervene is absolute and the court has no discretion in the matter, citing Boehm v. Rieder,
It may be conceded that every decree against a corporation adversely affects the interest of its stockholders. But it does not follow that every stockholder has a right to intervene in the suit; and where the corporation is properly defending, and interposes the very defenses sought to be interposed by the one seeking intervention, the record ought not to be unnecessarily encumbered by the admission of stockholders as parties. The corporation defends for its stockholders and in the absence of fraud or bad faith the stockholders' intervention is not necessary, although permissible in the court's discretion.
Now as to the merits of petitioner's proposed defense. It is argued that all purchases of its stock by the defendant company must be pro rata from all stockholders of the same class, and, among other defenses, that the repurchase of complainant's stock by the defendant would be a discrimination against, and an impairment of, the rights of the petitioner, in that it would create an additional and unlawful preference in complainant as a stockholder in the distribution of the capital and assets of the defendant company, citing Berger v. United States Steel Corp.,
A similar application was made in this cause by another stockholder (Henry D. Brinley, Esq.) on the authority of Beach
v. Palisade Realty and Amusement Co.,