Cozzens v. Chicago Hydraulic-Press Brick Co.

46 N.E. 788, 166 Ill. 213
CourtIllinois Supreme Court
DecidedApril 3, 1897
StatusPublished
Cited by11 cases

This text of 46 N.E. 788 (Cozzens v. Chicago Hydraulic-Press Brick Co.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cozzens v. Chicago Hydraulic-Press Brick Co., 46 N.E. 788, 166 Ill. 213 (Ill. 1897).

Opinion

Mr. Chief Justice Magruder

delivered the opinion of the court:

First—The plaintiff, the Chicago Hydraulic-Press Brick Company, is a corporation organized under the laws of Missouri; and it is claimed that its corporate existence was not proven. One of the pleas filed was the plea of nul tiel corporation. When this plea is interposed, the burden of proving corporate existence is cast on the plaintiff corporation. (Bailey v. Valley Nat. Bank, 127 Ill. 332). But this plea does not impose the burden upon the plaintiff of proving, that it was in all respects a perfectly legal corporation. It is sufficient, for a recovery upon the issue presented by that plea, to make proof that the plaintiff corporation had a defacto existence. An association may be regarded as a de facto corporation, where there is a law authorizing the creation of corporations of its class and powers, and where there is an attempt in good faith to comply with the law. (Hudson v. Green Hill Seminary, 113 Ill. 618). The plaintiff introduced in evidence, upon the issue made as to its corporate existence, section 2492, article 5, chapter 98, first volume of the Revised Statutes of Missouri, as follows, to-wit: -

“Section 2492. Articles of Incorporation—When and where filed—Shall Toe evidence, when.—Whenever a corporation shall be organized under the laws of this State, it shall be the duty of the officers of said corporation to file with the Secretary of State a copy of the articles of association or incorporation, and the corporate existence of such corporation shall date from the time of filing said copy of such articles; and a certificate by the Secretary of State under the seal of the State, that said corporation has become duly organized, shall be taken by all courts of this State as evidence of the corporate existence of such corporation. A certified copy of said certificate of the Secretary of State shall be filed and recorded in the office of the recorder of deeds of the county in which the organization is organized.”

Plaintiff also introduced in evidence a certificate of incorporation issued by the Secretary of State of Missouri, reciting, that certain individuals had filed in his office, articles of association or agreement in writing, as provided by law, and had, in all respects, complied with the requirements of law governing the formation of private corporations for manufacturing and business purposes, and certifying, that said parties, their associates and successors, had become a body corporate, and duly organized under the name of Chicago Hydraulic - Press Brick Company, and had all the rights and privileges granted to manufacturing and business corporations under the laws of the State of Missouri. Plaintiff also introduced in evidence a certified copy of said certificate of incorporation, with the certificate of the recorder of deeds of the city of St. Louis attached, certifying that the same was recorded in his office on February 19, 1890.

Without deciding whether the statute of Missouri and the certificates made under and in pursuance thereof, as thus introduced in evidence, were or were not sufficient to prove the existence of a de jure corporation, they were certainly sufficient to show the existence of a de facto corporation. This was sufficient under the issue made by the plea of nul tiel corporation in this collateral proceeding. Hence the objection, that there was no proof of corporate existence, is without force.

Second—Objection is made by appellant, that the appellee was allowed to amend its declaration without the granting of a continuance to appellant, and without giving him an extension of ten days’ time to plead to the amended declaration. In the declaration as originally drawn, it was alleged that the defendants “guaranteed payment of the sum of money in said note specified according to the tenor and effect of said note, and of the guaranty written on the back of said note.” When the declaration was amended by dismissing the case as to Wheatley, Buck & Co., the amended declaration omitted the words, “and of the guaranty written on the back of said note.” During the trial the omission of these words was discovered, and the court granted leave to the plaintiff to amend his declaration by inserting them.- When this amendment was allowed, the defendant asked for a continuance. The refusal of the court to continue the cause was not error, because the defendant did not make an affidavit, such as is required by the 25th section of the Practice act in such cases, that he was unprepared to proceed with the trial at that term in consequence of the amendment. (2 Starr & Curtis’ Stat. p. 1788). The defendant then asked for ten days’ time to plead to the amended declaration. This request the court refused, and ordered that the pleas already filed to the original declaration stand as the pleas to the amended declaration. Under the statute the court was authorized to allow such time to plead as might be deemed reasonable and necessary. (2 Starr & Curtis’ Stat. p. 1789). Giving time to plead is in the discretion of the court, and is not reviewable on appeal except for abuse of the discretion. (Culver v. Hide and Leather Bank, 78 Ill. 625). Here, there was no abuse of discretion, and no injury to the defendant, because the amendment to the declaration made the amended declaration the same as the original declaration, and the pleas on file, which were allowed to stand as pleas to the amended declaration, had been filed by defendant to the original declaration.

Third—It is said that there were material alterations in the contract of guaranty. It is also objected, that the note provided for interest at the rate of seven per cent per annum, while the guaranty for the payment of the note provided for interest at the rate of six per cent per annum, and that, therefore, the contract of guaranty was changed. The evidence tends strongly to show, that the erasure of the words which were erased from the guaranty, was made before the signature of appellant as guarantor was endorsed upon the note. In addition to this, it was left by the instructions of the court to the jury to determine whether the plaintiff had established by a preponderance of the evidence the making by the defendant of the dontract of guaranty sued on. The jury, by their verdict, and the Appellate Court, by its judgment of affirmance, have settled the question in favor of plaintiff, that the contract of guaranty sued on was the contract made between the parties. The fact, that the maker of the note agreed therein to pay seven per cent interest, while the guarantor limited his guaranty to the payment of six per cent interest on the amount of the note, created no repugnancy or inconsistency between the note and contract of guaranty. A credit on a note cannot release the surety, and for the same reason a credit of one per cent of interest cannot release the surety. It was the right of the guarantor to thus limit the extent of his liability.

Fourth—It is claimed by the appellant, that, while it was proper to dismiss the suit as to Stebbins and Mesney, such dismissal was not proper as to Wheatley, Buck & Co. The principle is invoked, that, when an action is brought on a joint contract, judgment must be against all or none; (Kingsland v. Koeppe, 137 Ill. 344;) and it is, therefore, argued that appellant and Wheatley, Buck & Co., being jointly liable as guarantors, judgment should have been rendered against them both, or not at all. Wheatley, Buck & Co.

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Bluebook (online)
46 N.E. 788, 166 Ill. 213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cozzens-v-chicago-hydraulic-press-brick-co-ill-1897.