Brown v. Mays

241 S.W.2d 871, 34 Tenn. App. 632, 1949 Tenn. App. LEXIS 144
CourtCourt of Appeals of Tennessee
DecidedJuly 30, 1949
StatusPublished
Cited by7 cases

This text of 241 S.W.2d 871 (Brown v. Mays) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Mays, 241 S.W.2d 871, 34 Tenn. App. 632, 1949 Tenn. App. LEXIS 144 (Tenn. Ct. App. 1949).

Opinion

PELTS, J.

Complainants filed the bill herein against J. L. Mays and ~W. H. Mays to recover on certain rent *634 notes alleged to have been given by them pursuant to a written lease exhibited with the bill. Process was not served on W. H. Mays, it appearing that he was living out of the state, and the suit was dismissed as to him and proceeded against J. L. Mays alone.

He set up a number of defenses by demurrer. The demurrer was overruled, with leave to rely thereon, and he filed an answer presenting the same defenses. Proof was taken by depositions, the cause was heard, and the Special Chancellor found against these defenses and entered a decree for complainants for $4,039.88, the amount of the notes and interest, after allowing all proper credits, plus an attorney’s fee of $500, and the costs of the cause.

Defendant appealed and has assigned a number of errors presenting’ the same defenses relied on below. His first insistence is that he signed the lease and the notes only as agent for a disclosed principal, Mays & Dilts Drug, Inc., and was not personally a party to the contract and not individually liable on the notes.

One of the complainants, Mrs. Claire Brown Beard, gave her deposition. According to her testimony, she and her father owned the lot and J. L. Mays came to see them and asked them to erect a building thereon so that he could rent it and use it as a drugstore. He, his brother W. H. Mays, and Plarry Dilts were operating a drug business under the name of Mays-Dilts Drug, Inc., which was a corporation.

Complainants erected a building for the drugstore and built it to fit fixtures that the lessees were to put into it. Complainants did not know the financial responsibility of the corporation, but were satisfied with the responsibility of J. L. Mays and 'W. H. Mays. They had a lease drawn naming the company, J. L. Mays, W. H. Mays, and Harry Dilts as lessees; and they insisted that it be signed *635 by J. L. and W. H. Mays individually, but did not require Harry Dilts to sign it because J. L. Mays told them be was furnishing the money and Mr. Dilts was a good drugstore man.

Defendant gave bis deposition. He stated, that while he had conducted the negotiations for the lease, he was acting for the corporation and not for himself individually. He denied that complainants had requested him to sign the lease in his personal or individual capacity, and denied that he had told them he was furnishing the money for the business. He admitted that the parties had executed the lease and the notes which were exhibited with the bill, but said that he had done so only as agent for the company.

The lease and the last twenty-three notes, those being the ones sued on, are sent up in their original form. The lease was a printed form with blank spaces filled in in typewriting. We set out here the material parts of it, italicizing the typewritten parts:

“Rent or Lease Contract, this day entered into between A. J. Brown & Claire Brown as owners and Mays & Dilts Drug Company Inc.; and J. L. Mays & W. H. Mays & Harry Dilts Lessees, and Lessee. The said owners A. J. Brown & Claire Brown as Agents, hereby Lease or Bent to the above named lessees the following described property, located in the city of Nashville, or suburbs, and fronting 30 feet on Hillsboro Road at 2211 Hillsboro Street, and being the property of said A. J. and Claire Brown; a brick store, newly erected. “The said above named lessees agree and bind themselves to take good care of the property, .
“The lessees shall use this building for a Drug Store and for a beauty parlor
*636 “Tbe term of this Lease to begin on the 10th day of June 1935 and continue from month to month, for the term of Sixty Months
“The rent shall be $100.00 per month in advance for the first 36 months; $125.00 per month for the next 12 months; and $135.00 per month for the last twelve months; one month having been paid; and notes for the other 59 months being now given
“Signed this, the 4th. day of June 1935;
/s/ A. J. Brown /s/ Claire Brown
Owner
Witness
/s/ Noah W. Cooper
By Owner
Mays & Dilts Drug Inc.
/s/ Pres J. L. Mays Lessee,
/s/by J. L. Mays /s/ W: H. Mays”

It is true, as insisted by learned counsel for appellant, that where an agent discloses his principal and contracts so as to bind the principal, the contract will ordinarily be regarded as that of the principal alone. But the contract may bind the agent alone, or the principal alone, or both together, depending on the intention of the parties manifested by the terms of the contract. That is, one as agent may make a contract on behalf of his principal and also on behalf of himself individually, making them both parties and joint principals to the contract. “It is entirely competent for the agent, although his agency is known and he is fully authorized to bind his principal, to pledge his own personal responsibility. He may do this in two ways, namely, he may add his responsibility to that of the principal, or he may tender his own responsibility instead of that of *637 his principal. The other party may say to him, ‘I know your principal, and I mean to bind him, bnt I also mean to make such a contract that, if I prefer, I may hold you upon it.’ ” (1 Mechem on Agency, 2d Ed., Sec. 1419, p. 1048)

“There may he an agreement that the principal alone is a party, that the agent alone is a party, or that the principal and the agent are both to be parties . . . ” Restatement, Agency, Section 146, Comment a. To the same effect: 2 Am. Jur., Agency, Section 239; 3 C. J. S., Agency, Section 215, p. 122; Wyatt v. Davidson, 1 Tenn. Cas., Shannon, 613, 614, 616, 617.

In the case before us we think appellant, in making the lease, and the notes, which were signed in the same manner as the lease, contracted both as agent on behalf of the corporation and on behalf of himself individually, making himself and the company both joint principals and lessees, along with the other lessee, W. H. Mays.

As we have seen, the writing named all of them as lessees. All of them joined in the covenants in the lease, including the covenant to pay rents; likewise all of them signed the rent notes in the same manner as they signed the lease. Appellant signed twice — in two capacities: Acting as agent he signed the corporate name followed by his own as president, and acting as an individual he signed his own name.

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Bluebook (online)
241 S.W.2d 871, 34 Tenn. App. 632, 1949 Tenn. App. LEXIS 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-mays-tennctapp-1949.