Bank of Michigan v. Williams

5 Wend. 478
CourtNew York Supreme Court
DecidedOctober 15, 1830
StatusPublished
Cited by9 cases

This text of 5 Wend. 478 (Bank of Michigan v. Williams) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Michigan v. Williams, 5 Wend. 478 (N.Y. Super. Ct. 1830).

Opinion

By the Court,

Sutherland, J.

It has been repeatedly decided, that a foreign corporation may sue in its corporate name, both in the courts of law and equity in this state. 1 Johns. Cas. 132. 16 Johns. R. 43. 4 Johns. Ch. R. 372. 4 Cowen, 530, notes. 6 id. 46. The same doctrine prevails in England. A suit was brought by The Dutch West India Company, in the court of common pleas, for money lent in Holland; the objection was distinctly taken, that a foreign corporation could not sue in the English courts. It was overruled, and the judgment of that court was affirmed in the king’s bench and house of lords, 1 Strange, 612. 2 Ld. Raym. 1532, 1535.

The only question in this case is whether the plaintiffs have proved themselves to be a legal valid corporation. That it was incumbent upon them to establish that fact is not denied. A corporation, when it sues, need not set forth its title in the declaration ; but it must shew, by evidence upon the trial, that it is a body politic, having legal authority to make a contract which it seeks to enforce if the action be upon a contract, or to sue in that character and capacity in which it appears in court. No principle is better settled, both in England and in this country. Hob. 211. 2 Ld. Raym. 1535. 8 Johns. R. 378. 14 id. 416. The act un[483]*483der which the plaintiffs claim to exist and to exercise the ordinary powers of a banking corporation, was passed by the governor and judges of the territory of Michigan on the 19th day of December, 1817. The defendant contends that there was no power in the government of Michigan in December, 1817, to incorporate a banking company; and the case resolves itself into the inquiry whether such power did or did not exist. Michigan was originally embraced in the “ territory of the United States northwest of the river Ohio.” That territory was organized by an ordinance of congress passed the 13th day of July, 1787, 1 Laws U. 8. 475, and on the 7th August, 1789, certain modifications of the ordinance were made which had become necessary in consequence of the adoption of the constitution, which took place after the original ordinance was passed. 2 Laws V. 8. 33. These alterations, however, were merely formal. On the 7th May, 1800, the territory of Indiana was erected out of a part of the territory northwest of the Ohio, 3 Laws U. 8. 367, with the same government as that established by the ordinance of July 13th, 1787. On the 30th April, 1802, congress made provision for the erection of what was called the eastern division of the territory, northwest of the river Ohio, into a separate state, 3 Laws U. 8. 496; and on the 11th January, 1805, Michigan was taken from the northern part of Indiana and erected into a separate territory, with a government in all respects similar to that established by the ordinance of July 13th, 1787, and the act of August 7th, 1789. 3 Laics U. 8. 632. Its organization and powers remained the same in 1817, when the act incorporating the plaintiffs was passed. We must look to the ordinance of 1787, therefore, in order to ascertain whether the government of Michigan had authority to incorporate a banking association. By that ordinance the legislative authority of the territory is vested in the governor and judges in the following terms: “The governor and judges, or a majority of them, shall adopt and publish in the district such laws of the original states, criminal and civil, as may be necessary and best suited to the circumstances of the district, and report them to congress from time to timej [484]*484which laws shall be in force in the district until the organizatian of the general assembly therein, unless disapproved of by congress; but afterwards the legislature shall have authority to alter them as they shall see fit.” It was contended upon the argument that the original of this act was not to be found in the laws of any of the states; and that from the very nature of a monied corporation, the power of creating one could not have been intended to be conferred, as the ordinance contemplates a system of temporary legislation, to be altered or suspended whenever a legislature should be regularly organized. It is undoubtedly true that no law is to be found in any of the states “ incorporating the stockholders of the Bank of Michigan.” But it is also true, that with the exception of the title of the corporation, the place of its location, the names of the commissioners who •were to receive subscriptions to the stock, and a few other particulars, which in the very nature of things, must be of a local and peculiar character, the substantial provisions of this act existed in most, if not all of the original states. It is not an ordinary bank charter, containing no new or peculiar principles. It purports on the face of it to have been adopted from the laws of New-York, Ohio and Massachusetts. If the construction contended for by the defendant be correct, probably a valid law has never been enacted in Michigan. There is not an act in their statute book which is a literal transcript from the laws of any state. Every law must have some peculiar reference to the community for which it is designed. It necessarily purports to have been enacted by a legislative authority representing such community, and to be designed to operate only upon its citizens. Take that mass of legislation which regulates the internal concerns and police of a state or territory, which divides it into counties or districts, provides for the election or appointment of local officers and the organization of courts of limited local jurisdiction, for the laying out and working public highways, the building of bridges and county gaols, the assessment and collection of taxes, &c. it is evident that all these laws must have local references which are not to be found in the laws of any other state.

[485]*485We find among the laws of this territory an act incorporating the city of Detroit, defining its boundaries and dedaring that it shall be distinguished by the name of the City of Detroit; that the inhabitants of the said city of Detroit who are freeholders, &c. shall elect trustees, Sic, Also an act establishing an University in the city of Detroit, by which the governor and twenty other gentlemen named in the act, are declared to be a body politic and corporate by the name, style and title of “ The Trustees of the University of Michigan.” Laws of Mich. 443. Also an act to incorporate the Mechanics’ Society of the city of Detroit, and a Medical Society of Michigan; and also a Medical Society for each county in the territory. Upon the principles contended for by the defendant’s counsel, all these laws are utterly void; for it is manifest that the precise originals are not to be found in the laws of any of the slates. But this I apprehend is not the sound construction of (he ordinance of 1787. The limitation which it imposed upon the legislative authority of the governor and judges was designed to secure to the people of the territories to which it applied a system of laws, each of which had been tried and approved of by the people of some one of the states.

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Bluebook (online)
5 Wend. 478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-michigan-v-williams-nysupct-1830.