Jackson v. Nelsonville Foundry & Machine Co.
Jackson v. Nelsonville Foundry & Machine Co.
Opinion of the Court
The judgment record in the Madison county case introduced in evidence here shows that the plaintiff was described in that case as a corporation. The introduction of the judgment record is objected to because it does not show that the plaintiff therein is identical with Merchants and Miners Bank, a partnership.
Should this evidence be excluded?
The averments in the petition in the Madison county case that the plaintiff was a corporation were immaterial ones. (Brady v. National Supply Co., 64 Ohio St., 267.) These are merely descriptive of the plaintiff and of no more consequence than if the plaintiff’s name in the caption read: The Merchants and Miners Bank, a corporation.
The precise question for this court then is: In a suit on a domestic judgment, where it appears that the name of the party plaintiff in the judgment sued on is not identical with the name of the party claiming to have secured the judgment, can parol evidence be received to show that the parties are, in fact, identical? A case can readily be imagined where the admission of such evidence would be absolutely necessary. If the name of the plaintiff in a suit for recovery on a judgment was exactly the same as the name of the plaintiff in the transcript of the judgment sued on, and there was an answer to the effect that they were not the same parties, parol evidence would be imperative. While the authorities are not in accord on the subject the great weight of authority sus
State, ex rel. Prescott, Jr., et al. v. Hanousek, 19 C. C., 303; Missouri Glass Co. v. Gregg, (Tex.) 16 S. W. Rep., 174; U. S. Nat. Bank of N. Y. v. Venner, 172 Mass., 449, 52 N. E. Rep., 543; Fisher, Brown & Co. v. Fielding, 67 Conn., 91, 32 L. R. A., 236; Boyden, Jr., v. Hastings, 17 Pick., 200; Morris v. The State, ex rel. Brown, 101 Ind., 560; Hollenbeck v. Stanberry & Son, 38 Ia., 325; Mobile & Montgomery Ry. Co. v. Yeates, 67 Ala., 164; James H. Barry & Co. v. Carothers, 6 Rich. Law (S. C.), 331; Stevens v. Elizee, 3 Campbell, 256; Farrar v. Fairbanks, 53 Me., 143, and Stevelie v. Read, 2 Wash. C. C., 274.
The rule is well established that where the record of a former action, pleaded as a bar or estoppel, does not show that the parties to such action were identical with the parties to the action in which it is so pleaded, this fact may be established by parol evidence. 23 Cyc., 1542.
Counsel for the receiver say that a suit to recover on á judgment presents an entirely different situation from one in which a former recovery is pleaded, but they do not point out any difference or cite any case as authority for the position that there should be a difference. It seems to us there is no difference. Both cases fall within or without the general rule that parol evidence will not be received to explain, contradict or interpret a judgment. In one case the judgment record is admitted to prove the existence of a cause of action; in the other it is admitted to prove the nonexistence of
It is contended that The Nelsonville Foundry & Machine Company did not authorize the warrants of attorney contained in the several promissory notes, and that therefore the court of common
In the case of Dickinson v. Zubiate Mining Co., 106 Pac. Rep., 123, (11 Cal. App., 656), it is held:
“Through the president and secretary who executed a written agreement in a corporation’s behalf, it must be deemed to have had notice thereof, when it was made.”
“The most comprehensive rule with reference to this subject which can be stated is that notice communicated to, or knowledge acquired by, the officers or agents of corporations when acting in their official capacity or within the scope of their agency becomes notice to or knowledge of the corporation for all judicial purposes.” 10 Cyc., 1054.
Another rule equally well established is that:
“A corporation may ratify by passive acquies- ] cence, as well as by affirmative action, the unauthorized acts of its agents, and its acquiescence with knowledge, if continued for a considerable time, operates as a ratification.” Knowles et al. v. Northern Texas Traction Co., (Tex.) 121 S. W. Rep., 232. 2 Thompson on Corporations (2 ed.), Section 1407.
All four of the notes could have been taken up long ago and renewals given without the warrants of attorney, if the corporation had any desire to set right the unauthorized acts of its officers, but its acquiescence for so long a time without any
It is further contended that the Madison county court had no jurisdiction of the machine company because a warrant of attorney must be strictly construed, and as Merchants and Miners Bank was in fact a partnership the attorney at law who confessed the judgment in Madison county had no authority to confess a judgment in favor of The Merchants and Miners Bank, a corporation, citing Spence v. Emerine, 46 Ohio St., 433; Mansfield Savings Bank v. Post et al., 22 C. C., 644, and other cases of like import.
It will be noticed that the payee in the notes referred to is Merchants and Miners Bank. If
The note for $10,000 was given within a month before it was reduced to judgment, and was signed: The Nelsonville Foundry & Machine Company, C. A. Cable, President,’ R. H. Jackson,
“Would you mind if I would tell you that the directors and the stockholders in their yearly meeting would say they would turn over a new leaf every year, ‘now, we will get together and we will have meetings, regular meetings, and will look after business a little bit closer and will help you out,’ and that is the last I would hear of them until the next meeting.”
But the next meeting after April 9, 1909, never came. So that for a period of almost five years prior to the appointment of the receiver on March 24, 1914, the board of directors never met. They ceased to direct the corporation and as directors became dormant. R. H. Jackson was the only officer connected with the corporation who was compensated. The business was being conducted at a loss. The directors were not interested. They, by their acquiescence, allowed the business to be conducted by Mr. Jackson, and he had entire charge of the same during the period of five years. The stockholders present at the annual meeting in
Nor did the stockholders hold a meeting during that five-year period, except on the one occasion, August 22, 1912, when they elected the old board of directors, being the same persons, with one exception, who did not meet during the. five-year period. So the stockholders acquiesced in the action of the directors in allowing Mr. R. H. Jackson to manage and control the business of the company.
At the time of the execution of the $10,000 note, on December 21, 1910, the directors had not met for one year and seven months, and the stockholders were allowing the general manager, Mr. R. H. Jackson, to assume and exercise the powers of the board of directors. Their attitude in the matter is clearly seen by the reelection of the same directors in 1912, with the single exception. This
In 2 Thompson on Corporations (2 ed.), Section 1409, it is said:
“Generally where the stockholders, by their direction or acquiescence, invest the executive officers of the company with the powers and functions of the board of directors, as a continuous and permanent arrangement, the board being entirely inactive, and the officers discharging all its duties, a transaction consummated in behalf of the corporation by such officers will be valid, though not specially authorized by any vote of the stockholders or directors.” ,
In the case of The Smead Foundry Co. v. Chesbrough, 18 C. C., 783, cited so frequently by counsel for the machine company, the fourth paragraph of the syllabus reads, in part, as follows:
“The president of a corporation has no power by virtue of his office to execute a bond and warrant of attorney for the entry of judgment by confession against the corporation. Such power is vested in the board of directors only. But the president’s authority may be enlarged beyond the powers inherent in his office by the consent and acquiescence of the directors in permitting him to take control of the business of the corporation.”
The evidence shows beyond dispute that the stockholders permitted the directors to surrender their offices to the general manager for a period of five years. The note of December 31, 1910, was executed nineteen months after the board of
Does the failure to aver in the Madison county petition that the plaintiff was a partnership formed for the purpose of carrying on a trade or business in Ohio render the judgment void?
In J. H. Beers & Co. v. Gurney, 14 C. C., 82, the court held that where the defendant fails to take advantage of such failure by proper pleading the objection is waived The case under consideration, however, is different from that one, in that the judgment here in controversy was taken on confession and the defendant had no opportunity to make any' objection. However, the Madison county court of common pleas had jurisdiction of the parties and of the subject-matter, and the petition therein was such a one as could have been amended, and the proper averment made, as the record (outside the judgment record) shows that Merchants and Miners Bank was a partnership formed for the purpose of doing business in Ohio.
As said in Spoors v. Coen, 44 Ohio St., 497, 503:
“If the case presented invoked the jurisdiction of the court, and could have been perfected by amend*192 ment,. the judgment of the court thereon could not be treated as a nullity.”
An amendment could have been made showing the plaintiff had legal capacity to sue in the Madison county case. Besides, the waiver of errors in the warrant of attorney would seem to be sufficient to waive just such an error as this. We have no doubt that had the defendant joined issue on some other averment in the Madison county case, without raising any objection to the failure to aver that the plaintiff was a partnership formed for the purpose of carrying on business in Ohio, and the plaintiff had recovered a judgment, that judgment would be valid. If this is true, and the error could be waived under, such circumstances, it was waived by the language of the cognovit note.
The decree will be in accordance with this opinion.
Decree accordingly.
Reference
- Full Case Name
- Jackson v. The Nelsonville Foundry & Machine Co.
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- Published