Colorado Milling & Elevator Co. v. Proctor

76 P.2d 438, 58 Idaho 578, 1938 Ida. LEXIS 6
CourtIdaho Supreme Court
DecidedFebruary 11, 1938
DocketNo. 6481.
StatusPublished
Cited by10 cases

This text of 76 P.2d 438 (Colorado Milling & Elevator Co. v. Proctor) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colorado Milling & Elevator Co. v. Proctor, 76 P.2d 438, 58 Idaho 578, 1938 Ida. LEXIS 6 (Idaho 1938).

Opinion

*581 BUDGE, J.

Respondent instituted this action for the collection of a promissory note in the face amount of $1,021.92, executed by appellant to “Parma Elevator,” and alleged that respondent was doing business at Parma, Idaho, under the name of “Parma Elevator.” Appellant's demurrer, considered more fully hereafter, was overruled and appellant ajiswered. Execution of the note was admitted, but that it was executed for a good and valid consideration was denied. For further defense appellant alleged that in August, 1930, he delivered to respondent 3,898 bushels of first grade Federation wheat at the then prevailing market value, namely $1,25 per hundred, and that he had been credited at the rate of only 65 cents per hundred, and further, that after delivery of the 1930 wheat crop respondent was actually indebted to *582 appellant on the wheat delivered, the amount delivered more than satisfying respondent’s demands against appellant. The jury before which the action was tried found for respondent and against appellant in the sum of $510.96, upon which verdict judgment was entered for such amount, plus costs and attorney’s fees, totaling $756.61, whereupon this appeal was taken from the judgment and from an order overruling appellant’s motion for a new trial.

Appellant’s first assignment of error is to the effect that the court erred in overruling the demurrer to the amended complaint, for the reason that a corporation may not do business under an assumed or trade name in this state. The note sued upon by respondent was made payable to “Parma Elevator.” Respondent alleged that it was doing-business at Parma, Idaho, under the name of “Parma Elevator.” The corporate existence of respondent Colorado Milling and Elevator Co., and that it was qualified to do business in the state were admitted by stipulation. The facts resolve the question to be decided principally into whether a corporation may contract in an assumed or trade name or a name acquired by user or reputation, in the absence of a statute prohibiting it from doing so, no law of this state having been found prohibiting a corporation from transacting business or contracting under an assumed or trade name. Likewise, it appears that there is no statute specifically authorizing a corporation to adopt or use an assumed or a trade name, Title 52, Chapter 5, relating- to “assumed business names” having no application to corporations duly organized under the laws of this state, or to any corporation organized under the laws of any other state, and lawfully doing business in this state, I. C. A., sec. 52-504, providing:

‘ ‘ This chapter shall in no way affect or apply to any corporation, duly organized under the laws of this state or to any corporation organized under the laws of another state and lawfully doing business in this state, .... ”

The foregoing conclusion is supported by National Oil Works v. Korn Brothers, 164 La. 800, 114 So. 659, so construing a similar statute.

*583 In Fletcher Cyclopedia, Corporations, Permanent Edition, vol. 6, p. 87, sec. 2442, the general rule that a corporation may assume a name, unless there is some statutory provision to the contrary, is stated as follows:

“A corporation when it comes into existence, acquires a legal name by which it is known and identified, and by which in general it contracts and acts. Strictly speaking, this name is the only legal name which it can have, unless, of course, such name is subsequently changed by the state or under authority from the state. It seems quite well established, however, that in the absence of statutory prohibition a corporation may have and be known to the public by more than one name, and that, in addition to the name given it by its charter, it may acquire other names by user or reputation. Of course it cannot by usage or prescription acquire a legal name other than that conferred upon it by law, and ‘a corporation cannot, except as authorized by law, change its own name, either directly or by user.’ It cannot be said that a corporation has a right, not only to the actual name given to it by its articles of incorporation, but also to a translation of such name into a foreign language.
“This legal name and title which the law confers upon a corporation is the' only one which it should use. It may not, without authority of law express or implied, use any other name, particularly where the statute directly prohibits corporations from transacting any business under any other or different name than that conferred upon them by their articles of incorporation. But however desirable it may be that a corporation act and contract in its true legal name, this is not always done. In written instruments, pleadings, process, etc., misdescriptions very often creep into the corporate name with what effect will be seen later, and a corporation may contract, acquire rights or incur obligations in a fictitious or trade name. Like any individual, a corporation may assume a name other than its legal name and carry on business in such assumed name, but in order to apply this doctrine, incorporation by some name must be established. If a note or deed is executed by a corporation under an assumed name, it is just as much bound as if it had used its proper name, and *584 the same is true of any other contract. A contract entered into by or with a corporation under an assumed name may be enforced by either of the parties, if the identity of the corporation is established by the proof. ’ ’

Authorities supporting the proposition are: McClain v. Georgian Co., 17 Ga. App. 648, 87 S. E. 1090; Golden’s Foundry & Machine Co. v. Wight, 35 Ga. App. 85, 132 S. E. 138; Moon Motor-Car Co. v. Savannah Motor-Car Co., 41 Ga. App. 231, 152 S. E. 611; President etc. of Mount Palatine Academy v. Kleinschnitz, 28 Ill. 133; Butler Mfg. Co. v. Elliott & Cox, 211 Iowa, 1068, 233 N. W. 669; National Oil Works v. Korn Bros, supra; Mail & Express Co. v. Parker Axles, Inc., 204 App. Div. 327, 198 N. Y. Supp. 20; William Gilligan Co. v. Casey, 205 Mass. 26, 91 N. E. 124; Curtin v. Salomon, 80 Cal. App. 470, 251 Pac. 237; Brotherhood State Bank of Spokane v. Chapman, 145 Wash. 214, 259 Pac. 391, 56 A. L. R. 447, and annotation of authorities, 56 A. L. R. 450.

Appellant’s contention, set forth in assignment 2, that error was committed in admitting respondent’s exhibit A, a certified copy of respondent’s certificate of assumed name on file with the county recorder is disposed of by the foregoing conclusion. While possibly immaterial, the admission of such exhibit was not prejudicial to appellant.

It is next urged that respondent’s exhibit B, the note, was improperly admitted in evidence, no consideration for the instrument having been shown and the consideration having been put in issue, and for the further reason that the note was not given to appellant but to the Parma Elevator. There was evidence that the identity of the Parma Elevator and appellant were one and the same, which fact may be established by the ordinary methods of proof. (Marmet Co. v. Archibald, 37 W. Va. 778, 17 S. E.

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Bluebook (online)
76 P.2d 438, 58 Idaho 578, 1938 Ida. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colorado-milling-elevator-co-v-proctor-idaho-1938.