Churchill v. Thompson Electric Co.

119 Ill. App. 430, 1905 Ill. App. LEXIS 129
CourtAppellate Court of Illinois
DecidedMarch 27, 1905
DocketGen. No. 11,823
StatusPublished
Cited by1 cases

This text of 119 Ill. App. 430 (Churchill v. Thompson Electric Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Churchill v. Thompson Electric Co., 119 Ill. App. 430, 1905 Ill. App. LEXIS 129 (Ill. Ct. App. 1905).

Opinion

Mr. Justice Brown

delivered the opinion of the court.

This is a writ of error sued out from this court to the Superior Court of Cook county to reverse a judgment entered . by that court on the verdict of a jury for $171.60. The' cause was brought to the Superior Court by appeal by the defendants (the plaintiffs in error here) from a justice of the peace. By the justice judgment had been entered for the plaintiff (the defendant in error here) for the same amount.

The plaintiffs in error have assigned error in the admission and exclusion of evidence, in the giving and refusing of instructions, and in the use of injurious language by the trial judge in the presence of the jury.

The question at issue in this cause was the liability of the plaintiffs in error, Charles E.- Churchill and Rome V. Wagner, for certain electrical attachment goods, which it is practically agreed were actually ordered and obtained by one W. E. Hatch, who was sued before the justice jointly with the plaintiffs in error, but who was not found by the officer.

The cause in the Superior Court was of course tried without written pleadings, but there was an affidavit of Charles E. Churchill filed, denying that Rome Y. Wagner, Charles E. Churchill and William F. Hatch were or ever had been partners, and asserting that they were not jointly liable upon the cause of action sued on in this suit.

Plaintiffs in error assert that the action was brought by the defendant in error and was tried solely on the theory that plaintiffs in error were liable under the following section (18) of the Corporation Act, (Chapter 32 of the Revised Statutes) :

' “If any person or persons pretending to be an officer or agent or board of directors of any stock corporation or pretended stock corporation, shall assume to exercise corporate powers or use the name of any such corporation, or pretended corporation, without complying with the provisions of this act or before all stock named in the articles of incorporation shall be subscribed in good faith, then they shall be jointly and severally liable for all debts and liabilities made by them and contracted in the name of such corporation or pretended corporation.”

The defendant in error, on the other hand, insists that this is not an accurate statement of the situation. Its counsel say that as there were no written pleadings, the evidence must be looked to to determine the issues involved, and that the evidence raised two questions: First, were plaintiffs in error liable under the statute referred to ? Secondly, were they liable because of their so holding themselves out to the public as to estop them from denying partnership relations ? In other words, defendant in error claims that it can hold the plaintiffs in error liable as partners under the common law, or, failing in that, as liable under the statute, for an improper assumption of corporate powers and name. We are unable to see in the record any evidence sufficient to hold the plaintiffs in error as partners of Hatch or of each other. It is not contended that there was any actual partnership. But it is urged that the use of a letter head by Hatch in this form:

“R. V. Wagner, President. W. F. Hatch, V.-P. & Mgr.
C. E. Churchill, Secy. & Treas. WAGHER-HATCH MOTOR CO.
308 Dearborn St., Chicago.
Dynamos & Motors, Telephone Harrison 3270.”

taken in connection with the occupation of the same office by Wagner, Churchill and Hatch, and with the facts that the name “The Wagner-Hatch Motor Company” appeared, with the knowledge of plaintiffs in error, on the entrance door of the office and on motors stored in a warehouse'used by all the parties, and that Mr. Churchill guaranteed in writing “certain specific contracts for certain specific goods” for Mr. Hatch, made the three men partners as to creditors •—or at least estopped them from denying to creditors such a partnership—practically the same thing. With this we cannot agree. The letter head implied not a copartnership, but an incorporated company, and the other matters fall far short of raising any presumption of the existence of partnership relations.

Objection was made to the admission of certain testimony . of Mr. Samuel Thompson concerning conversations between himself and Mr. Hatch, and it is argued for plaintiffs in error that the admission of it was error because no foundation had been laid for the declarations and acts of Hatch by establishing any prima facie case of the joint or partnership liability with him of the plaintiffs in error. The admission of the testimony called out on direct examination may have been error, but it could not have harmed the plaintiffs in error. We do not understand that any question is made here as to the amount of the bill sued. The issue is the liability of the plaintiffs in error for it. On that point the evidence of Mr. Hatch’s conversations in the direct testimony of Mr. Thompson throws no light. Mr. Thompson swears to no admissions or assertions to support the theory of such a liability. In the cross-examination of Mr. Thompson an admission of Hatch is sworn to, but that can hardly be complained of by the plaintiffs in error. It is of no probative force, however. We are forced to agree with the learned trial judge who at the conclusion of the plaintiffs’ case below, said, according to the record: “There is not any proof tending to show that there was a partnership.” And again, “The only theory upon which these parties can be held liable is that they knowingly allowed their names to be used as officers of this corporation when there was no such corporation.” In other words, the plaintiffs in error are liable under the provisions of section 18 of chapter 32 of the Revised Statutes, or not at all. This being our opinion, it follows that we think that the second instruction given at the request of the plaintiff below was inapplicable and misleading, and should not have been given. It was as follows:

“The court instructs the jury that if they believe from the evidence, that R. V. Wagner, O. E. Churchill and W. F. Hatch held themselves out as partners trading under the firm name of Wagner-Hatch Motor Company, then in such case said parties are liable for all debts contracted by either or any of said parties under the name of Wagner-Hatch Motor Company.”

Mr. Thompson, as before recited, had implied on cross-examination that “Mr. Hatch had said so,” when asked if he knew the defendants and Hatch to be partners, and although in the absence of other evidence tending to establish a partnership, the probative force of this statement was nothing, it might well have been that the jury thought that this instruction was given with relation to that testimony and justified them in taking that testimony as sufficient to hold defendants liable.

As to the liability under section 18, before quoted, this court has more than once held that some affirmative voluntary act on the part of one sought to be charged, or some active participation in the particular transaction out of which the indebtedness arose, is necessary to hold him. Edwards v. Cleveland Dryer Co., 83 Ill. App., 643; Edwards v. Dettenmaier, 88 Ill. App., 366.

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Cite This Page — Counsel Stack

Bluebook (online)
119 Ill. App. 430, 1905 Ill. App. LEXIS 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/churchill-v-thompson-electric-co-illappct-1905.