Columbia Valley Trust Co. v. Smith

107 P. 465, 56 Or. 6, 1910 Ore. LEXIS 130
Oregon Supreme Court·Decided March 15, 1910·Published·Cited by 1 cases

Opinion

Opinion by

Mr. Chief Justice Moore.

1. It is contended by defendant’s counsel that evidence received oyer objection and exception did not substantiate the incorporation of the plaintiff, or the assignment of the note sued upon to it, and, such being the case, an error was committed in refusing to grant a judgment of nonsuit. The bill of exceptions shows that A. ,P. Tifft, as plaintiff’s witness, having testified that he was its president, counsel said: “We will offer in evidence the original articles of incorporation of the plaintiff.” An objection to the document, on the ground that it was immaterial, irrelevant, and incompetent, and that the writing was not properly proven, was overruled, and an exception allowed. The plaintiff’s counsel further observed: “We also offer the supplementary articles of incorporation.” To this offer the same objection, ruling, and exception are noted as in the preceding tender of proof. The defendant having admitted that he executed the note in question, it was received in evidence without objection or exception, and shows that Pelton indorsed it in blank. Tifft stated upon oath that, although he did not see the indorsement made on the note, he was acquainted with and recognized the signature of Pelton, who, in transferring the instrument to the plaintiff, gave it to the witness. He was then asked, “Who is now the owner and holder of that note?” and over objection and exception, on the ground that the inquiry called for a conclusion, was permitted to reply, “The Columbia Valley Trust Company, the plaintiff in this case.” The execution [9] of the documents purporting to be the plaintiff’s articles of incorporation was attested by subscribing witnesses, neither of whom was called to verify the authenticity of the writings. Nor did the plaintiff offer any evidence tending to show that the provisions of the statute had been complied with, in that the articles of incorporation were executed in triplicate, one filed with the Secretary of State, one with the local county clerk, and another retained by the plaintiff at its place of business in Multnomah County (Section 5053, B. & C. Comp.), or that the subscribers, of the articles had opened books to receive applications for capital stock of the corporation, that one-half thereof had been subscribed, or that directors had been elected. (Section 5057, B. & C. Comp.)

It is argued that the failure to call the subscribing witnesses to prove the execution of the articles of incorporation, and the neglect to show a compliance with the requirements of the statute respecting its existence and organization, renders the admission in evidence of such articles erroneous, and necessitates a reversal of the judgment. The statute demands that when a writing is offered in evidence, and it appears that the document is attested by a subscribing witness, its execution shall be proved by him, if living, within the State, and can testify. Section 773, B. & C. Comp. In construing this enactment, its provisions were held to be mandatory. Hannan v. Greenfield, 36 Or. 97, 103 (58 Pac. 888).

The statute announcing the degree of proof necessary in certain cases formerly contained the following provision: “The articles of incorporation, or a certified copy of the one filed with the Secretary of State or the county clerk, is evidence of the existence of such corporation.” Section 5054, B. & C. Comp. Construing this clause in connection with other sections of the general incorporation act, it was determined that a substantial compliance with such provisions was necessary in order to create [10] and form a private corporation, and that when its existence or organization was challenged by the pleadings it was essential for the party on whom the burden was imposed to supplement the evidence, which the articles of incorporation or a proper copy thereof afforded, by testimony tending to show an observance of the several statutory requirements. Goodale Lumber Co. v. Shaw, 41 Or. 544 (69 Pac. 546). Since that decision was rendered, the statute (Section 5054, B. & C. Comp.) has been amended, and now reads as follows:

“The articles of incorporation, or a certified copy of the one filed with the Secretary of State or county clerk, shall be prima facie evidence of the existence of such corporation and of its right to do the business mentioned in said articles without any other evidence thereof.” Laws Or. 1905, p. 111.

It is argued by defendant’s counsel that the amendment is an attempt On the part of the legislature to invade the province of the judicial department by prescribing the degree of proof required in a particular instance; that the enactment does not pretend to repeal or alter the clauses of the general act of incorporation which designate the several duties required to be performed in order to create and organize a private, corporation; and that, such being the case, the evidence offered at the trial herein was insufficient to authorize a judgment for the plaintiff.

The principle is settled that a legislative assembly may make such changes in the rules of evidence, governing the trial of civil causes, as wisdom and experience may suggest, providing, however, the alteration does not preclude a party from freely presenting the facts which tend to support his theory of the issue invoked. Cool. Con. Lim. (5 ed.) 348, 452; 11 Am. & Eng. Enc. Law (2 ed.) 550. “Courts of high authority,” says Mr. Justice Shiras, in Marx v. Hanthorn, 148 U. S. 172, 181 (13 Sup. Ct. [11]*11508, 510: 37 L. Ed. 410), “have held that mere rules of evidence do not form part of contracts entered into while they are in force, and that it is competent for the legislature to, from time to time, change the rules of evidence, and to make such change applicable to existing causes of action.” In Board of Commissioners v. Merchant, 103 N. Y. 143, 148 (8 N. E. 484, 485: 57 Am. Rep. 705), in discussing this question, Mr. Justice Earl says:

“The general power of the legislature to prescribe rules of evidence and methods of proof is undoubted. While the power has its constitutional limitations, it is not easy to define precisely what they are. A law which would practically shut out the evidence of a party, and thus deny him the opportunity for a .trial, would substantially deprive him of due process of law.”

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Columbia Valley Trust Co. v. Smith, 107 P. 465, 56 Or. 6, 1910 Ore. LEXIS 130 (Or. 1910).

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