Klombies v. Weeks Poultry Community, Inc.

JAMISON, J.,

pro tem.

This action was brought to declare void and annul plaintiff’s application for a certificate of membership in defendant’s organization, also a contract alleged to have been executed in connection with the said membership, and to cancel a note given in payment of the fee owing defendant for said membership, and to recover the sum of $66.77 paid thereon.

Plaintiff had judgment declaring void said membership and said contract and ordering the cancellation of said note.

Defendant moved for a new trial and same being denied prosecutes this appeal. Appellant is a nonprofit co-operative corporation, the members thereof being engaged in the poultry business, and the purpose of the said organization being to assist them in marketing their products and purchasing supplies necessary for their business. On August 24, 1926, a supplemental permit was issued to appellant by the commissioner of corporations authorizing appellant to sell and issue 300 membership certificates for $200 each, to be paid in cash or part cash and the remainder by promissory note. Said permit contained the following pro

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vision: “This permit is issued upon the condition that a true copy o£ said permit be exhibited and delivered to each prospective subscriber for, or purchase of said securities before his subscription therefor shall be taken, or any sale thereof made.”

On September 3, 1926, respondent entered into an agreement with appellant to purchase a membership in appellant’s said organization, paying his membership fee by the execution of his note for $200. Iiis application was accepted and certificate of membership issued to him and at the same time also entered into a marketing contract with appellant whereby, as a member of said corporation he agreed to pack, crate, ship and market all of his poultry, eggs, etc., through said corporation.

The court found that this appellant, its officers or agent, did not exhibit and deliver to respondent a true copy, or any copy, of said permit at the time he purchased said membership, nor had appellant at any time exhibited or delivered a copy thereof to respondent until long after said purchase.