Wheless v. Second National Bank
Wheless v. Second National Bank
Opinion of the Court
Wheless, a cotton broker and commission merchant in Nashville, sued the Second National Bank for prosecuting against him an attachment returnable to the Circuit Court of Davidson County, alleging that the same was sued out without sufficient cause, and by gross negligence and maliciously, whereby he was damaged to the amount of one hundred thousand dollars, in his business, credit and reputation.
The cause was tried in the Circuit Court of Davidson, when the Circuit Judge charged the jury that the action could not be maintained, because the defendant was a corporation. Under this introduction the jury found for the defendant, and Wheless appealed to this Court.
The only question for our determination is, can an action on the case be maintained against a corporation for suing out an attachment without sufficient cause and maliciously?
It appears from the proof that Wheless was a cotton broker and commission merchant in Nashville, of high standing and in good credit, and that he had carried on much of his financial business through the Second National Bank, and at the time of the issuance of the attachment he had overchecked in that bank to the amount of four or five thousand dollars. Having failed to arrange his account to the satisfaction of the Bank, the Cashier filed his affidavit, alleging that Wheless was about to dispose of
To maintain this character of action it is essential that the plaintiff show by proof that the original suit was commenced without sufficient cause and maliciously. The Circuit Judge so charged, but he went further, and held that a corporation could not be guilty of the kind of malice necessary to support the action.
On this point the Circuit Judge told the jury: “I have been thus explicit to show that the malice required to sustain this action is actual malice, resting in the motives and intention of the defendant, a substantive fact to be proved by the evidence in the case, because I am of opinion it is this fact that defeats the plaintiff’s right to an action against this corporation, and because it is this that makes the authorities cited by the plaintiff’s counsel and ably sustained in argument, inapplicable to this case, with the exception, perhaps, of the case in 22 Conn. Re
This reasoning of the Circuit Judge is supported by respectable authorities, but it results in developing an anomaly in the law which is wholly irreconcilable with its catholic and just administration. By our Code, natural persons and corporations are entitled to like benefits in resorting to the ordinary and extraordinary process provided for the enforcement of their rights. When natural persons resort to such process they are liable to pay damages, whenever they have abused this process by its wrongful or malicious use. But according to the reasoning of the Circuit Judge, if a corporation abuse the same process, wrongfully and maliciously, by which a third party is damaged, such third party is entitled to no recourse against the corporation, however malicious its agents may have been in suing out the process. It results from this reasoning that the law secures rights and exemptions to corporations which are withheld from natural persons. This is wholly inconsistent with the genius and spirit of our State Constitution, which was intended to secure equal and exact justice to all.
The doctrine of the charge rests upon the assumption that a corporation has no soul, and can think no evil; therefore, that it cannot be guilty of actual malice. As an abstract proposition it may be true that the impersonal being called a corporation can. not
This question is discussed with great clearness and conclusiveness in the libel case of Philadelphia, Washington and Baltimore R. R. Co. v. Quigley, in 21 Howard, 209, 210. In that case, in answer to the objection “that no action, ex delicto, or indictment will lie against a corporation for any misfeasance,” the Court say: “ But this conclusion would be entirely inconsistent with the legislation and jurisprudence of the States of the Union, relative to artificial persons.” . . . “To enable impersonal beings, mere legal entities, which exist only in contemplation of law, to perform corporeal acts, or deal with personal agents, the principle of personal representation has been adopted as a part of their constitution. The powers of a constitution are placed in the hands of a governing body selected by the members, who manage its affairs, and who appoint the agents that exercise its faculties for the accomplishment of the
The law thus laid down by the Supreme Court is simple, clear and eminently just. It repudiates the highly technical idea that a corporation is exempted from responsibility, or the misfeasances or malfeasances of its governing agents, for the simple reason that the corporation itself is soulless and incapable of thinking evil; it discards all distinction between the responsibility of natural persons for their own malicious acts, and that of corporation for similar acts in the due course of their business. This rule has been repeatedly recognized and followed by
Reference
- Full Case Name
- Jas. Wheless v. The Second National Bank
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- Published