Denver & R. G. Ry. Co. v. Harris

3 N.M. 109
CourtNew Mexico Supreme Court
DecidedJanuary 15, 1884
StatusPublished

This text of 3 N.M. 109 (Denver & R. G. Ry. Co. v. Harris) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denver & R. G. Ry. Co. v. Harris, 3 N.M. 109 (N.M. 1884).

Opinion

Bristol, J.

This case is here on writ of error to the district court Sor the First judicial district and county of Santa Fe. Harris, the plaintiff below, brought an action of trespass against the Denver & Eio Grande Railway Company, a corporation under the laws of the state of Colorado, to recover damages in the sum of $10,000 for bodily injuries inflicted by the agents and employes of the defendant corporation while in and about the employment of their principal, and Recovered judgment in the sum of $9,000. As to the merits of the -case the whole controversy turns upon the question whether the injuries were inflicted by the agents or employes of the defendant cor-portion or other persons acting on their own behalf exclusively, or acting within the scope of their employment by such corporation. A ■corporation being an artificial body created by law, all its acts necessarily must be performed by its agents and servants. And when a corporation is sued in an action founded on the unlawful or tortious acts of the agents or servants, the fact whether the acts complained of were done on their own account exclusively or on behalf •of the corporation within the line of their employment is not ordinarily to be established by the plaintiff by proof of what occurred in some meeting of the directors of the corporation,—the evidence of which is under the control of such directors,—but by proof of what the agents and servants of the corporation had done, and of the attending circumstances indicating the purpose of their acts and the object to be attained thereby; and especially if attained, and the corporation accepted the same and used the fruits thereof as its own, proof thereof might be received to establish the corporate liability.

The old common-law doctrine that “A corporation cannot be aiding to a trespass,” nor “give a warrant to do a trespass without writing,” or that “it could authorize no agent, do no act, and give no assent but by deed, ” was long since exploded. The doctrine as now understood and applied by the courts is that corporations are liable for -every wrong, every trespass, and every tort committed by their agents and employes within the scope of their employment as such, and to the same extent as individuals under like circumstances; and the doctrine of ultra vires, as formerly understood and applied, does not under the modern decisions have any application to such cases. Merchants’ Bank v. State Bank, 10 Wall. 645; Nat. Bank v. Graham, 100 U. S. 702; State v. Morris & E. R. Co. 23 N. J. Law, (3 Zab.) 368, 369.

The doctrine of ultra vires, as formerly understood and applied by the courts to corporations, was that such institutions were endowed with a species of infallibility; that they in their corporate character could not do or sanction any act by and through their agents or servants -which they were not authorized to do by their respective charters conferring corporate powers; that because they were not authorized to do wrongful and tortious acts they could therefore do no wrong. But it was soon ascertained that these institutions, notwithstanding they had no legal authority to do wrong, yet they often assumed powers ultra vires to do and actually did commit all sorts of trespasses and unlawful and wrongful acts through wholly irresponsible servants and employes, often caused the greatest losses and damages to private individuals and their property; and the courts, to protect society, were finally impelled ex necessitate to place the responsibility of corporations ■on a more enlightened and reasonable basis.

The doctrine of ultra vires, as now interpreted by the courts, and applied to corporations, signifies merely such acts and doings by any ■corporation which, though it may have the power to perform or to adopt and sanction through its agents or servants, yet.it has no legal authority to do under its charter of corporate powers; in the same sense precisely that every act performed by a natural person which the law either in express terms or by necessary implication does not sanction, nor confer on him any right to do, would be illegal, and might be termed ultra vires.

In the well-considered case of State v. Morris & E. R. Co. supra, in which this whole subject is ably reviewed, and the modern doctrine clearly expressed, the court by its chief justice used the following language : “But it is said that although a corporation may omit to perform acts made obligatory upon it by law, and thus be liable for nonfeasance, yet from its very nature it cannot use force, and therefore cannot commit any act involving force, and which must be charged to have been committed vi et armis. This argument rests entirely upon the disability of the corporation to commit any act of trespass or positive wrong, and applies to its capacity to commit civil as well as criminal injuries. It is the very argument by which it was sought to be established that no action for a trespass or tort would lie against .a corporation. But it has been well said, that if a corporation has itself no hands with which to strike, it may employ the hands of others; and it is now perfectly well settled, contrary to the ancient authorities, that a corporation is liable civiliter for all torts committed by its servants or agents by authority of the corporation, express or implied. * * * The result of the modern cases is that a corporation is liable civiliter for torts committed by its servants or agents precisely as a natural person; and that it is liable as a natural person for the acts of its agents done by its authority, express or implied, though there be neither a written appointment under seal, nor a vote of the corporation constituting the agency or authorizing the act. * * *

“It is further objected that a corporation aggregate cannot be lia'ble to indictment for a crime because the commission of the criminal .act is not warranted by their corporate powers. This argument, pmshed to its legitimate conclusion, would exempt a corporation from all liability for wrongs, civil as well as criminal. It is most aptly answered by Mr. Binney in his argument in Chestnut Hill Turnpike Co. v. Rutter, 4 Serg. & R. 16: ‘According to the doctrine contended for, if they do an act within the scope of their corporate powers it is legal and they are not answerable for the consequences.’ If the act be not within the range of their corporate powers they had no right by law to do it; it was not one of the objects for which they were incorporated, and therefore it is no act of the corporation at all. This doctrine leads to absolute impunity for every species of wrong, and can never be sanctioned by any court of justice. * * * It is said, again, that the individuals who concur in making the order or in doing the work are individually responsible. And so is every servant or agent by whose agency a tort is committed, but it has never-been supposed that the principal is therefore exempt from liability. On the contrary, the principle and the policy of the law has ever been to look to the principal rather than to the mere agent; and in the case of corporations it is the clear dictate of sound law not only, but of public policy, to look rather to the corporation at whose instance and for whose benefit the wrong is perpetrated than to the individual directors by whose order the wrong was done, who may be entirely unknown, or to the laborers by whom the work was performed, who, in a great majority of cases, would be alike unknown and irresponsible.”

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Related

Merchants' Bank v. State Bank
77 U.S. 604 (Supreme Court, 1871)
National Bank v. Graham
100 U.S. 699 (Supreme Court, 1880)

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Bluebook (online)
3 N.M. 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denver-r-g-ry-co-v-harris-nm-1884.