Hay v. Hay

230 P.2d 791, 38 Wash. 2d 513 (1951)

From our private database of 45,900+ case briefs, written and edited by humans—never with AI.

Hay v. Hay

Washington Supreme Court
230 P.2d 791, 38 Wash. 2d 513 (1951)

Facts

The Big Bend Land Company (Big Bend) issued several thousand shares of preferred stock. Big Bend’s articles of incorporation stipulated that the holders of the preferred stock were entitled to yearly cumulative dividends at 6 percent per share, payable out of the company’s surplus profits. The articles also provided that upon liquidation the preferred stockholders were entitled to any accrued unpaid dividends. Big Bend later went into liquidation, at which point no surplus or net profits had been accumulated. The liquidating trustees (the trustees) (plaintiffs) sought a declaratory judgment as to the treatment of Big Bend’s cumulative preferred stock. The trial court declared that the holders of the cumulative preferred stock were entitled to receive accumulated dividends upon liquidation, payable before the holders of the common stock could receive anything in a distribution. Edward Hay (defendant), acting as an individual stockholder and as the administrator of the estate of Fayette Imhoff, an heir of one of Big Bend’s founders, appealed. Hay’s argument was that Big Bend’s lack of net profits prevented payment of dividends. The Washington Supreme Court granted certiorari.

Rule of Law

Issue

Holding and Reasoning (Donworth, J.)

Dissent (Grady, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 735,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 735,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 45,900 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 735,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 45,900 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership