Stewart v. Walterboro & Western Ry. Co.
Stewart v. Walterboro & Western Ry. Co.
Opinion of the Court
The opinion of the Court was delivered by
The appeal herein raises two questions: 1. Whether his Honor, the Circuit Judge, erred in ruling that the defendant, the Walterboro and Western Railway Co., was dissolved upon its consolidation with the Green Pond, Walterboro and Branchville Railway Co., thereby rendering it necessary that the action should be brought against the new consolidated corporation; and 2. Whether there was error in refusing the application for leave to amend.
The complaint alleges that in April, 1897, Lisbon Stewart, the plaintiff’s intestate, was injured, through the negligence of the defendant, and died on the 25th October, 1898, in consequence of such injury. Letters of administration were granted on the 10th October, 1900, and soon thereafter this action was commenced. The defendant in its answer interposed two defenses, the first not being involved in this appeal. The second defense alleges that in February, 1900, the Walterboro and Western Railway Co. and the Green Pond, Walterboro and Branchville Railway Co., each being a domestic corporation owning and operating a railroad (the roads owned and operated by the said corporations forming a continuous line with each other and all being within this State), were consolidated under the general statute law of this State, the new consolidated corporation being the Green Pond, Walterboro and Branchville Railroad Company. The defendant moved for judgment on the pleadings dismissing the action, which was granted. The plaintiff asked leave to amend by striking out the name of the Walterboro and Western Railway Co., and inserting instead thereof the name of the Green Pond, Walterboro and Branchville Railroad Co. His Honor refused the application because he did not think he had authority to allow the amendment, under the case of Lily v. R. R. Co., 32 S. C., 142.
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In 8 Enc. of Law (2d ed.), 238, it is said: “In a strict literal sense, a creditor is one who voluntarily trusts or gives credit to another for money or other property; but in a more general and extensive sense of the term, a creditor is one who has a right to recover money of another on any account whatever. Thus, in statutes avoiding sales and conveyances in fraud of creditors, the term ‘creditors’ has been held to- include persons entitled to- damages for torts.” In the note on page 240 of that volume, we find the following: “A New York statute provided that, upon the dissolution of a corporation, its directors should, unless other persons were appointed, be the trustees of the creditors and stockholders. It was held that the word creditors included all those to- whom the corporation was under any -enforceable obligation at the time of its dissolution, as well as those to whom it -was indebted, and, therefore, one having a cause of action for the loss of services of his son, who- had been injured while in the employment of the company, was a creditor.” Citing Marstaller v. Mills, 143 N. Y., 398. The note on page 573, vol. 4, Enc. of Law (1st ed.), is as follows: “The term creditor does not mean simply a person to whom a debt is due — that is but its usual meaning; but it further denotes a person to whom any obligation is due, and this is its unusual meaning, A creditor, according to- the definition of Bouvier, ‘is he who has the right to- require the fulfilment of an obligation or contract.’ In this large sense it means more than the person to whom money is owing. Webster’s definition o-f the word is a ‘person to whom a sum of money -or other thing is due by obligation, promise or in law.’ Beasley, C. J., in N. J. Ins. Co. v. Meeker, 37 N. J. L., 300.” The author also- cites the *96 following from Stanley v. Ogden, 2 Root (Conn.), 261, to wit: “In a strict legal sense, a creditor is he who voluntarily trusts and gives credit to another for a sum of money or other property upon bond, bill, note, book or simple contract. In a more liberal sense, he is a creditor who has a legal demand upon another for money or other property which has got into the hands of another without his consent, by mistake or accident, which he is entitled to have, or to- a compensation in damages for, upon the ground of an implied promise. In a more general or extensive sense of the term, he is a creditor, who has a right by law to demand and recover of another a sum of money on any account whatever.” These authorities are in harmony with our cases of Lowry v. Pinson, 2 Bail., 324, and Plenniken v. Marshall, 43 S. C., 80. Having reached this conclusion, it necessarily follows from the express language of the statute which we have italicised, that the defendant was not dissolved as a corporation, in so far as the rights of this plaintiff are involved, 'and his Honor erred in ruling otherwise. State v. Ry. Co., 45 S. C., 434.
It is the judgment of this Court, that the judgment of the Circuit Court be reversed, and the case remanded to that Court for a new triel.
Believing that the action should have been brought against the new corporation.
Reference
- Full Case Name
- Stewart, Admr., v. Walterboro and Western Ry. Co.
- Cited By
- 4 cases
- Status
- Published
- Syllabus
- 1. Railroads — Tort—Creditor—Words and Phrases. — Where two railroad companies consolidate under the general railroad law, one corporation so consolidated is not dissolved so as to relieve it of its liability for a tort previously committed. The term “creditor,” in Rev. Stat., providing for consolidation of railroad companies, embraces one having a claim for damages against a consolidating company arising out of a tort. 2. Ibid. — Pleadings—Amendments.-—Where an action for tort is commenced against a railroad company, which, since committal of tort but before action commenced, has consolidated with another, the complaint cannot be amended by inserting the name of the new corporation for that of the consolidating company.