Brand v. Lawrenceville Branch Railroad
Brand v. Lawrenceville Branch Railroad
Opinion of the Court
This was a suit by the Lawrenceville Branch Railroad Company against Brand to recover the amount of a subscription made by him to the- stock of the company. Besides the general issue, the defendant filed several special defences to the action:
First. That he subscribed to the stock upon the condition that the road was to be extended from Lawrenceville to Logansville, where he resided, .and after the subscription was made, the company, in violation of the condition and in fraud of his rights reserved under it, entered into a contract with another railroad company, without his knowledge or consent, that this condition should not be complied with, and that the extension contemplated by it should not be made.
Second. That there was a condition in the contract of subscription to the effect that $20,000.00 (twenty thousand dollars), or an amount sufficient, in the discretion of the board of directors and president of the company, to grade the road, build the bridges and to put down cross-ties, should be bona fide subscribed before he was liable .to be called on for his subscription, which condition 'has never been complied with; and further, that the company was compelled to enter into a contract with a responsible party to furnish and place iron on the track and equip the road ready for operation before he was liable to pay his subscription ; and that this condition of the contract was not complied with before he was called upon for his subscription.
Under the testimony and charge of the court, a verdict was found for the plaintiff for the amount of the subscription, and thereupon defendant made a motion for new trial, which was overruled upon each and all the grounds therein taken, and to the judgment overruling this motion exceptions were taken; and this makes the issues which we are to determine. The grounds of the motion material to a determination of the case consist in errors assigned on
(1.) Because the court erred in charging the jury as follows : “ Now I charge you that it is incumbent upon the plaintiff to show, to your reasonable satisfaction, that before assessments-were made against the defendant, that $20,000 subscription had been obtained (this would not apply to the 3 per cent, to which your attention has already been called), or an amount of subscription had been obtained, which, in the discretion of the president and directors, was deemed sufficient to grade the road, build bridges and put down the cross-ties ready for the track. If the plaintiff hás shown that this was done, then as to this condition the plaintiff would have had the right to make the assessment and call upon defendant to pay his subscription.” — The error of this charge, as movant insists, was in ignoring entirely the fact that enough of said subscription to reduce the amount subscribed below twenty thousand dollars was conditional, and that the conditions on which the same had been subscribed were not complied with before the calls were made; Movant further respectfully insists that so much of said charge as instructed the jury that, if an amount, in the discretion of the board of directors, sufficient to grade the road, etc., had been subscribed before the calls were made, that was sufficient, without reference to the fact whether the subscriptions amounted to twenty thousand dollars or not, was error; that the said board having fixed in their meeting and by their resolution $20,000 as the amount necessary, etc., they were bound by it and could not ibake calls on the defendant for his instalment unless the amount of $20,000 had been unconditionally subscribed before the assessments on defendant were made.
(2.) Because the court erred further in charging as follows : “ Touching this matter, the defendant insists that $20,000 tona fide unconditional subscription had not been obtained at the time he was called on to pay. As to this,
(3.) Because the court erred in charging the jury as follows: “ As to right of plaintiff to recover, défendant further insists that by the terms of his subscription, before he could be required to pay the same, plaintiff was to have entered into a contráct with a responsible party, company or corporation, and by the terms of which contract the parties contracting were to obligate themselves to furnish and put down the track and equip said road ready for operation. As to this condition of the contract, whether it has or has not been complied with, plaintiff and defendant are at issue. Should you fin'd from the evidence, looking to all the written and oral evidence in the case, that before the defendant had been called on by as
The charge of the court submitting to the jury the question as to the existence of the conditions upon which defendant’s subscription was made as to the extension of the road to Logansville was correct, and was not excepted to. As the evidence upon the point was conflicting, there was no error in refusing the new trial upon that ground, and whether there was error in refusing it upon the general grounds that the verdict was contrary to law and evidence and decidedly and strongly against the weight of evidence, will appear when we come to consider the exceptions to the charges as numbered above.
There is evidence in this record going to show that, in the judgment of the company, at least $20,000 of subscriptions would be necessary to authorize the building of the road, and there is further evidence, from the minutes of the directors, that there was $27,000 in bona fide subscriptions made prior to their undertaking the work, and from this it is to be inferred that that amount was, in their opinion, requisite to complete the enterprise, and to justify them in making a call upon subscribers for other portions of their subscriptions other than the three per cent, they were liable for before the full amount was subscribed, for the purpose of defraying the expense incident to the organization of the company, surveying the route, etc.
The subscription list, which comes up with this record,
In order to recover from one who subscribed uncondi • t-ionally, where subscriptions have been made upon a condition precedent, “the plaintiff .must show that the conditions either have been complied with or waived. . . .
The burden is on the plaintiff to prove it. We may suppose two different subscriptions which are contradictory. It is clear that both conditions cannot be performed, and that both subscribers should not be counted as shareholders.” Morawetz on Private Corporations, §279, and citations of cases in note 3. To the same effect, Id. §286 et seq. See especially Id. §295, and citations.
If this be the law, as we think it is, then there was error in charging the jury that, if $20,000 had been fixed by the authorities of the company as the amount which was sufficient to complete the enterprise, they might thereafter exercise their discretion in relation to the subject, and in exercising it, they might change that amount by taking into consideration the conditional subscriptions.
What has been said above applies with full force to the charge excepted to in the ground of motion numbered 2.
Judgment reversed.
Reference
- Full Case Name
- Brand v. The Lawrenceville Branch Railroad
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- 3 cases
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- Published