Campbell & Zell Co. v. American Surety Co.

129 F. 491, 1904 U.S. App. LEXIS 4761
CourtU.S. Circuit Court for the District of Massachusetts
DecidedMarch 11, 1904
DocketNo. 1,397
StatusPublished
Cited by1 cases

This text of 129 F. 491 (Campbell & Zell Co. v. American Surety Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Campbell & Zell Co. v. American Surety Co., 129 F. 491, 1904 U.S. App. LEXIS 4761 (circtdma 1904).

Opinion

PUTNAM, Circuit Judge.

The questions involved in this case are technical, and somewhat difficult, as to which the court is liable to err. But the difficulty is not the fault of the law. The plaintiff had a clear, straight path given it, which, if pursued, would have left no doubt. While it is clear it might have brought a suit in its own name, and taken a bond to itself, so that there would now be no question, it brought suit in the name of a foreign receiver, although, according to the rules of law which have been settled from the beginning of our judicial system, a receiver appointed in one state has no more authority in another state than a police judge or a police officer of one state has a right to come to another and arrest criminals or preside at trials. Of course, this remark is confined to an ordinary receiver, and does not apply to a statutory receiver, in whom the title vests, and who becomes the statutory successor of the corporation.

The first question arises on the pleadings of the defendant with reference to the name of the principal corporation, combined with a question as to its existence. The defendant says that the plaintiff' is bound to prove its existence, and also bound to prove that it is the corporation of which the receiver was appointed in the state of Maryland, which receiver initiated these proceedings. It seems that the true name of the corporation is the Campbell & Zell Company of Baltimore City, while, in the proceedings before us, it is described simply as the Campbell & Zell Company. So far as the existence of the corporation is concerned, on the pleadings, and according to our practice, the burden rests on the plaintiff. It proves this by producing the bond sued in this case, which describes it as a corporation. This-makes out a prima facie case. It is not necessary to prove the existence of a corporation by the production of records. For ordinary purposes the de facto existence of a corporation may be proved by admissions of the adverse party, and this is sufficient. Here we have the description in the bond of the plaintiff as a corporation, and therefore its existence is admitted by the defendant under its seal.

Then, as to the identity of the corporation: If the defendant here could show that there were two Campbell & Zell corporations, special proof might be required on the part of the plaintiff that this is the corporation of which Mr. Homer was made receiver. The court is of the opinion that, as the case stands, the identity is proven.

The facts of the case are, briefly, as follows: As already stated, the local court in Maryland appointed Mr. Homer receiver of the Campbell & Zell Company of Baltimore City. At a term of the superior court for the county of Essex, in Massachusetts, held on-the first Monday of December, 1902, Homer brought suit against the Barr Pumping Engine Company. In his writ and declaration he described himself as follows: “Charles C. Homer, of the state of Maryland, receiver of the Campbell & -Zell Company, a corpo[493]*493ration established under the laws of the state of Maryland.” Then followed several counts; all, except one, of a doubtful character. They may be construed as alleging a promise to Homer as receiver. If all the counts were of that indefinite character, this suit would fail, because there would be nothing on the record to inform the American Surety Company that it was giving an obligation to protect any kind of a claim except on promises made to Homer as receiver. Therefore defendant could not be held for a judgment on promises made to the present plaintiff. There was, however, a count which set out the facts specifically, and alleged a contract made between the Barr Pumping Engine Company and the Campbell & Zell Company, and an obligation to pay by the Barr Pumping Engine Company to the Campbell & Zell Company, which, according to the dates alleged, preceded the appointment of Homer as receiver.

The judgment in the state court followed that count, and was in favor of the Campbell & Zell Company, and not of Homer, as receiver. The law, as settled, applies, that, where there is one good count, claiming sufficient to warrant the judgment, the judgment must stand, even though all the other counts are bad. So that the case stands as though the declaration in the suit in the state court showed that Homer, although the nominal plaintiff, was really suing in behalf of the Campbell & Zell Company, and on a contract made with it. This appears on the face of the papers, which the American Surety Company was bound to inform itself about, and which we may presume it did inform itself about, when it gave the bond in suit. Therefore the true condition was shown at the outset, and, as we will find, whatever was afterwards done was entirely consistent with the facts as they thus appeared, and only contributed to give full effect thereto. That proposition must be kept firmly in mind, and the dates also.

At that stage of the case the Barr Pumping Engine Company, desiring to release an attachment of its property, gave a bond for that purpose. In that bond the American Surety Company, the present defendant, became surety. Nevertheless, we must look at the four corners of the obligation of suretyship to learn its proper construction. Guaranty Co. v. Press Brick Co., 191 U. S. 416, 24 .Sup. Ct. 142, 48 L. Ed. 242. This is not a new rule. In Bowman v. Read, 2 Wall. 591, 603, 17 L. Ed. 812, the court says:

“Sureties are as much bound by the true intent and meaning of their contracts which they voluntarily subscribe as principals. They are bound in the manner, to the extent, and under the circumstances as they existed when the contract was executed.”

This bond, if it is severed into parts, contains some expressions which might require the court to construe it strictly as a contract between the American Surety Company and Homer, as receiver; but we must look at all the expressions found in it, and at what was contained in the plaintiff’s declaration in the state court; and, looking at these, we find it clear that the parties understood that the Campbell & Zell Company had the real interest, and that Homer was simply a go-between. Of this, the American Surety Company [494]*494had knowledge when it executed the obligation in suit, so that in executing it the surety company subjected itself 'to all such future steps as might be taken by the courts in working out the substance as shown on the face of the papers.

Assuming that the original suit had been brought in the state of Maryland by Homer, as receiver of the Campbell & Zell Company, in his name as such receiver, and had there proceeded to judgment in his name as such receiver, and that afterwards the receivership had been discharged, and by order of court the original condition had been restored, then, undoubtedly, in working out the substantial rights of the Campbell & Zell Company appearing‘on the face of the papers, supplementary suits could properly have been brought in its name, and judgments taken accordingly, in the Maryland courts; and all rights to the bond, both in equity and in law, would have vested in it. That is a settled rule, and it goes quite as far as we are required to go in order to maintain the suit now before us, under existing circumstances.

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Bluebook (online)
129 F. 491, 1904 U.S. App. LEXIS 4761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-zell-co-v-american-surety-co-circtdma-1904.