Demarest v. . Flack

28 N.E. 645, 128 N.Y. 205, 40 N.Y. St. Rep. 383, 1891 N.Y. LEXIS 974
CourtNew York Court of Appeals
DecidedOctober 6, 1891
StatusPublished
Cited by38 cases

This text of 28 N.E. 645 (Demarest v. . Flack) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Demarest v. . Flack, 28 N.E. 645, 128 N.Y. 205, 40 N.Y. St. Rep. 383, 1891 N.Y. LEXIS 974 (N.Y. 1891).

Opinion

Peckham, J.

The plaintiff alleged in her complaint that the defendants were a joint stock company doing business in Hew York city under the name and style of “ America’s Winter Carnival Company.” It was further alleged that they were the owners of the toboggan slides used at Fleetwood Park in the city of Hew York and that such slides were under their management and control. The plaintiff also alleged that she had, while riding on one of the toboggans upon one of the slides in the possession and management of the defendants, been accidently and seriously injured through the carelessness of defendants or their employes, and she demanded judgment for $25,000 damages.

The defendants, by answer, denied that they were a joint stock company and also denied the allegations that they were the owners of the toboggan slides mentioned or that they were under their control, and they denied all allegations of negligence either on their own part or on that of any of their employes.

■ Hpon the trial the plaintiff gave no evidence as to the defendants being a joint stock association, but endeavored to pyove a joint or partnership liability of defendants based upon the allegation that the grounds where the accident occurred were owned by the Hew York Driving Club, and that in the fall of 1887 the grounds were leased by it to the defendants for the purpose of putting up these toboggan slides.

The evidence tending to show even a prima facie liability on the part of the defendants-is of the most meagre character. We will assume, however, that the plaintiff proved enough to call upon the defendants for an answer to her cause of action.

This answer was in brief that the defendants were nothing • but individual members of and stockholders in an incorporated *209 company which had hired the grounds, owned the toboggans and operated the slides, and that whatever liability there was, if any, in favor of the plaintiff, was borne by the incorporated company, and not by the individual stockholders therein.

To prove this defense the counsel for the defendants offered in evidence a certificate of incorporation of the America’s Winter Carnival Company, as organized under the laws of West Virginia, and at the same time he offered the Code of W est Virginia in evidence.

The certificate and the Code were objected to by the plaintiff’s counsel on the ground that there was no allegation in the answer of the existence of a corporation or the incorporation of the America’s Winter Carnival Company, and that it was necessary to plead such fact before defendants could avail themselves of the defense.

The certificate was further objected to as incompetent, immaterial and illegal.

The objections were overruled and plaintiff’s counsel duly excepted. ' '

The first ground of objection as to the necessity of pleading the defense founded on the incorporation was properly overruled. It was not a defense necessary to be pleaded. It went to the root of the cause of action, and tended - to show there never had been any liability on the part of defendants. It was not an affirmative defense which in substance admitted an original cause of action, but showed facts which operated as a satisfaction thereof. It was not like a defense- of payment, or a release, or an accord and satisfaction. ■ If operative, it showed there had never been any liability, and hence it was admissible under the defendants’ denial of any liability as set out in the complaint. The certificate, when read in evidence, showed. that it was signed by the secretary of state of West Virginia, and that it was issued under the great seal of that state, and in it the secretary declared that the corporators therein named, and their successors and assigns, were, from the 12th day of December, 1887, until the 1st day of January, 1935, a corporation by the name and for the purposes set forth in the certificate.

*210 It was subsequently jn-oved, under objection and exception, that this company was, at the time of the happening of the accident, in possession of the toboggan slide in question, and was the owner thereof.

As to the second ground of objection taken by plaintiff’s (.counsel to the introduction of the certificate, that it was incompetent, immaterial and illegal, we may assume that it raises the question of the validity of the incorporation itself, and of its sufficiency as a defense. Upon this issue a few additional facts must be stated.

The Code of West Virginia which was received in evidence ■shows that a corporation of the kind herein spoken of could be formed under the general laws of that state by five or more ■persons signing an agreement to the effect stated in the statute, .and by the payment by each corporator of at least ten per cent, .of .the par value of the stock subscribed for by him. .Affidavits on the part of at least two of the corporators stating -necessary facts were also required by the statute. It is further -.therein provided that the agreement, acknowledgment and affidavits are to he delivered to the secretary of state, and he issues to the corporators his certificate under the great seal of the:state, declaring, among other things, that they and their successors and assigns are a corporation from that date until a time therein specified. The effect of the certificate is provided for by the statute, which says that the corporators .and their successors and assigns shall, from the date of the •certificate until the time designated therein, be a corporation, .and .the -certificate shall be received as evidence of such incorporation. The statute provides for the holding of meetings ■of the corporation, including the first general meeting for purposes of organization, out of the state, and it also provides for keeping the principal office of the corporation in any state or territory of the United States, and it permits the corporation to adopt by-laws and to prescribe the qualifications of directors, and if it be not otherwise provided, every director must be a stockholder and a resident of the state of West Virginia.

The certificate in question in this case embodies an agree *211 ment among five corporators, by which they agree to become a corporation by the name of America’s Winter Carnival Company, for the purpose of leasing premises for amusement, among others for toboggan slides, and they agree that its principal office shall be in the city of Hew York, and in this agreement, they recite that they have subscribed a certain sum (named therein) to the capital of the company, and have paid ten per cent, thereof, and that the capital so subscribed was divided into shares of one hundred dollars each, which were held by them. The names of the corporators were signed to the agreement, and their residences were therein stated as being in the city of Hew York. The agreement, properly signed and acknowledged, was presented to the secretary of state of West Virginia, and a certificate of incorporation duly issued, as already stated.

From the evidence it is clear, upon the question of user, that there was a person who acted as president of this company under a so-called election, although it does not appear how or when he was elected. That person was a resident of Hew York. There was also a person who acted as treasurer of the company, and he also resided in Hew York.

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Bluebook (online)
28 N.E. 645, 128 N.Y. 205, 40 N.Y. St. Rep. 383, 1891 N.Y. LEXIS 974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/demarest-v-flack-ny-1891.