Arkansas Grand Prairie Oil & Gas Co. v. Davidson

233 F. 641, 147 C.C.A. 449, 1916 U.S. App. LEXIS 2501
CourtCourt of Appeals for the Third Circuit
DecidedMay 23, 1916
DocketNo. 2104
StatusPublished

This text of 233 F. 641 (Arkansas Grand Prairie Oil & Gas Co. v. Davidson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arkansas Grand Prairie Oil & Gas Co. v. Davidson, 233 F. 641, 147 C.C.A. 449, 1916 U.S. App. LEXIS 2501 (3d Cir. 1916).

Opinion

BUFFINGTON, Circuit Judge.

In the court below the plaintiff, a corporate citizen of Delaware, brought an action of assumpsit against Frederick Davidson, with notice to Eleanor Hibbert Davidson, his guardian, both of whom were citizens of Pennsylvania, to recover an unpaid balance of a stock subscription to its stock. On the trial the issue, as submitted by the court, turned on whether the defendant Davidson was sane when the subscription was made, and, if sane, whether he had authorized the signing of his name to the subscription by a third person. The jury having found a verdict for the defendant, the plaintiff sued out this writ.

As shown by its prospectus in evidence, the plaintiff company, with an authorized capital stock of 100,000 shares of $10 each, was formed to develop oil and gas territory, and to that end leased some 80,000 acres in Prairie county, Ark., in “what they considered a great unexplored field for oil and gas.” On February 20, 1913, Miss M. M. Ackley, who resided in Pittsburgh and was selling the company’s stock on commission, wrote Mr. Davidson a letter at Beaver Falls, Pa., in- , closing a prospectus of the company and a stock subscription blank, and requested him to subscribe for some stock. To this letter he replied on February 25th, stating that he would not be able to consider it for two or three days, as he had to go to Buffalo, and stating, “I will write you fully on my return.” This he did not do, nor did he reply to a second letter she wrote him, in which she stated:

■ “If the well comes in good, the stock will go up, and you can’t purchase it at the price quoted you.”

No discussion took place between them as to the stock, but Miss Ackley testified: That on March 22d following she was called on the telephone at Pittsburgh by Mr. Davidson from Atlantic City, who requested she get him 1,000 shares. Having subsequently ascertained she could get it, she called him up later at the Waldorf-Astoria Hotel at New York, and told him she could get it, but that he would have to pay $1,000 down on the subscription. That he thereupon told her he would telephone the first of the week, that shq should sign it for him and hold it until he came home, and that she should call up his brother George at Beaver Falls to send her the $1,000. That she then signed the subscription sued upon, dated March 22d, in behalf of Mr. Davidson, and gave the company her check for $1,000. Having telephoned Mr. George Davidson, who in the absence of any advices from his brother declined to advance any money, she telegraphed Frederick in New York:

“Gave my check $1,000 account 1,000 shares. George wants telegram from you. Check goes to bank Monday. Answer.”

To this telegram no answer was received, but on Monday she received a letter from George, inclosing “my check for $1,000, at request of my brother Frederick.” The plaintiff. further proved that some 10 days before a witness, who was leasing land for the company, talked with Frederick Davidson about the general prospects of the company, and that there was nothing abnormal in his talk or actions.

[643]*643On the part of the defendant there was testimony tending to show the defendant was a man of large affairs, that he was under severe mental strain, that before, on, and shortly after, March 22d he exhibited signs that his mind was unsettled, that by the fifth day following the ordering of this stock he had become so violently insane that he was placed in confinement, and his wife, Mrs. Eleanor Hibbert Davidson, was subsequently appointed his guardian. Indeed, the proof of the mental condition of Davidson was such that under the proofs there could be no substantial dispute as to his insanity. We are therefore satisfied, from a study of this record, that the jury did substantial justice by their verdict.

Such being the case, the inquiry arises: Is the court constrained to set aside this result by reason of some error committed in reaching it? Such alleged errors group themselves into three branches: The restrictions of the pleadings; the character of the proofs; the court’s charge and answers to points.

[ 1 ] Turning first to the pleadings, it is contended they gave no notice of the defense of Davidson’s mental incapacity, and consequently that all evidence, thereof was improperly admitted. The purpose of requiring notice in advance of trial to be given by pleadings is to prevent surprise to one’s opponent and enable him to provide proofs to meet the disclosed issue. In the present case no' suggestion was made by the plaintiff that it was surprised, no application was made by the plaintiff to the court at the trial for a postponement to allow it to furnish any such testimony, nor is any contention now made that on a retrial such testimony would be forthcoming. It is evident, therefore, that even if the pleadings did not give notice of such testimony being given, no injury was done the plaintiff thereby. But, apart from that, we are of opinion the court in admitting this testimony committed no error.

[2] There could be no question but that the plaintiff, in invoking the jurisdiction of the court, knew it was litigating with a mental incompetent, for it named the committee of Davidson as a party defendant. Having made such committee a defendant, the case fell within the well-recognized rule that a person sued in a representative capacity is not required to file an affidavit of defense, and the conduct of the suit by the plaintiff shows it was not contemplated that any affidavit of defense to prevent judgment would be filed. Eor the plaintiff, while it filed its affidavit of claim, served no copy on the defendant, as required by rule 16, § 2, and section 4 of the Pennsylvania Practice Act of May 25, 1887 (P. L. 271), and so did not attempt to lay the ground for a judgment for want of an affidavit of defense. Counsel for the defendants having appeared, plaintiff thereupon entered a rule on the defendants to plead and another to furnish a bill of particulars of his defense. In answer to the rule to plead, the defendants filed a plea of non assumpsit and one of set-off, with leave to give in evidence the special matter set forth in the defense filed. They also, on the same day, filed a paper, entitled “Defense and Counterclaim,” wherein the allegations of the plaintiff’s statement showing alleged liability were quoted and denied, as follows:

[644]*644She denies the allegations of the plaintiff as follows:
“On the 22d of March, 1913, the said Frederick Davidson, by a subscription in writing, duly signed by the said Frederick Davidson by his agent in that behalf, M. M. Ackley, the said M. M. Ackley being thereto fully authorized by the said Davidson as his agent for that purpose, and the said Davidson subsequently ratifying and approving of her said act, subscribed for and agreed to pay for 1,000 shares of the capital stock of the said Arkansas Grand Prairie Oil & Gas Company, at par, that is to say, at $10 per share, the amount of said subscription, to wit, $10,000,' being payable as follows:
25 per cent, on date of subscription, March 22, 1913.
25 per cent, in 30 days thereafter.
25 per cent, in 60 days thereafter.
25 per cent, in 90 days thereafter.
“A true and correct copy of the said subscription is hereto attached and made a part hereof, marked Exhibit "‘A’.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Young v. Black
11 U.S. 565 (Supreme Court, 1813)
CRAIG v. the State of Missouri
29 U.S. 410 (Supreme Court, 1830)
Mason v. Eldred
73 U.S. 231 (Supreme Court, 1868)

Cite This Page — Counsel Stack

Bluebook (online)
233 F. 641, 147 C.C.A. 449, 1916 U.S. App. LEXIS 2501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arkansas-grand-prairie-oil-gas-co-v-davidson-ca3-1916.