Business Associations Keyed to Hamilton
Ringling Bros.-Barnum & Bailey Combined Shows v. Ringling
Facts
Ringling (P) and Haley (D) entered a stock pooling agreement by which they agreed to always vote their shares together, and in the case of disagreement, an arbiter would be provided, one Loos. They made this agreement because it would give them enough voting strength to elect five of the seven directors. In 1946, Ringling (P) and Haley (D) agreed to elect themselves and family as directors, but could not agree on a suitable fifth director. There was arbitration, and the arbiter, Loos, found that Ringling’s proposed director, Dunn, should be Haley’s (D) vote. Haley (D) refused, and abstained from the fifth vote. Without enforcement of Loos’ decision, one of North’s candidates would instead become fifth director. Ringling (P) brought suit for enforcement, while Haley (D) contended that their voting agreement was illegal. The court found that the agreement was valid, and a new election must be held upholding the voting agreement. Haley (D) appealed.
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