Eaton v. Walker

6 L.R.A. 102, 43 N.W. 638, 76 Mich. 579, 1889 Mich. LEXIS 989
CourtMichigan Supreme Court
DecidedOctober 18, 1889
StatusPublished
Cited by34 cases

This text of 6 L.R.A. 102 (Eaton v. Walker) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eaton v. Walker, 6 L.R.A. 102, 43 N.W. 638, 76 Mich. 579, 1889 Mich. LEXIS 989 (Mich. 1889).

Opinion

Long, J.

Plaintiff, in the year 1883, was a dealer in grain and produce, residing at Mason, in this State. Defendants were- the sole parties interested in a business of buying and selling grain and provisions for immediate and future delivery for themselves and other persons on commission at Detroit, and were members of the Board of Trade of Detroit.

This action is brought upon an account stated by defendants to plaintiff in the sum of $3,562.68. The account was erroneously made out in the name of the firm of Walker, Summer & Co., with whom plaintiff had formerly done business, and of whom Mr. Walker was at that time a member.

No question was made on the trial as to the amount due the plaintiff from Walker, Hopkins & Co., but the defense [581]*581rested on the single ground that Walker, Hopkins & Co. were a corporation, and not liable as individuals.

The cause was tried before the court without a jury, and the court made the following finding of facts and conclusions of law:

“ 1. On the third day of May, A. D. 1882, the defendants organized a corporation under the name of Walker, Hopkins & Co. by executing articles of association, and having the same duly filed in the offices of the clerk for the county of Wayne and the Secretary of State for the State of Michigan. The object of such corporation, as described in such articles of association, was ‘to carry on mercantile business in buying and selling grain for immediate or future delivery.’
“2. This corporation assumed to organize under Act No. 187 of the Session Laws of 1875, as amended by Act No. 274 of the Session Laws of 1881. The capital stock of the corporation was fixed at $50,000; each of the defendants subscribing for an equal portion of the same.
“3. The defendants Livingstone and Hopkins paid for their stock. The defendant Livingstone, on the sixth day of May, A. D. 1882, paid $10,000 on account of his stock; on the nineteenth day of May, $1,675; on the twenty-ninth day of May, $1,000; first day of June, $1,000; on the twelfth day of July, $325; on the ninth day of June, 1883, $1,000; and on the twenty-fifth day of July, 1883, $1,675. The defendant Hopkins paid for his stock in cash at or about the time of the organization of the said corporation.
“ 4. Prior to the organization of this corporation, a copartnership, of which the defendant Charles H. Walker was one of the copartners, conducted a business in buying and selling grain, and doing a general commission business, under the name of Walker, Summer & Co. Neither the defendant Hopkins nor the defendant Livingstone was connected with this copartnership. Prior to the organization of the corporation of Walker, Hopkins & Co., the defendant Walker purchased all of the assets of the firm of Walker, Summer & Co., and transferred such assets to Walker, Hopkins & Co.; an agreement being executed between the defendant Walker, and Walker, Hopkins & Co., providing, in eifeet, that the stock of the defendant Walker should be paid for out of collections to be made out of the assets thus transferred to Walker, Hopkins & Co.; but it does not appear that collections to any considerable amount were ever made upon the assets thus [582]*582transferred to Walker, Hopkins & Co., or that the stock of the defendant Walker was ever paid for.
“5. Soon after the organization of the corporation of Walker, Hopkins & Co., as above stated, it commenced to do business as a corporation in buying and selling grain and provisions for immediate or future delivery; the defendant Mark Hopkins, Jr., having been elected president of the corporation, and defendant Walker secretary and treasurer, and defendant Livingstone vice-president. The three defendants herein were elected a board of directors, and records of the-meetings of such corporation were duly kept, a corporate seal had and used, and regular stock certificates issued, and the fact of its incorporation duly announced through the public-press and by circular. Such business was continued by said Walker, Hopkins & Co., as such corporation, till the twenty-seventh day of July, 1883, when it made an assignment for the benefit of its creditors to Charles M. Swift as assignee, who qualified as such assignee, and executed the trust under such assignment so made by said corporation.
“6. The business of said corporation during the time it so •conducted said business was managed by the defendants Hopkins and Walker as president and secretary and treasurer of said corporation. The defendant Livingstone took no part in the transaction of the ordinary business of the corporation.
7. The plaintiff, who had been a customer of the firm of Walker, Summer & Co., upon the organization of the corporation of Walker, Hopkins & Co., continued todo business-with it, as he had done business with Walker, Summer & Co., prior to the organization of the corporation of Walker, Hopkins & Co.
“8. At the date of the execution of the assignment aforesaid, Walker, Hopkins & Co. was indebted to the plaintiff in the sum of $3,562.68.
“9. At the time that said Walker, Hopkins & Co. commenced business as aforesaid, and during the time it continued to do business, the plaintiff had full notice that-Walker, Hopkins & Co. was a corporation and not a copartnership, and he continued to do business with said Walker, Hopkins & Co. as such corporation.
“10. That the plaintiff transacted his business with Walker, Hopkins & Co. as a corporation, and the indebtedness sued for herein was contracted while said plaintiff was dealing with said Walker, Hopkins & Co. as such corporation.
[583]*583“11. The defendant Livingstone became a party to the organization of said corporation of Walker, Hopkins & Co., and a subscriber to its stock, in entire good faith, and all his dealings had with said corporation were had in good faith, and he never after the organization of said corporation received, directly or indirectly, any benefit therefrom by way of return of stock subscribed and paid for, or dividends thereon, and never, at any time while said corporation continued to do business, had any suspicion that the organization of said corporation was in anywise defective.
“ CONCLUSIONS OR LAW.
“a — Whether Act No. 274 of the Session Laws of 1881, under which the corporation of Walker, Hopkins & Co. assumed to organize, was a valid law or not, by reason of the alleged defect or imperfection in its title, the plaintiff is not entitled to recover in this cause. The defendant Livingstone having acted in good faith with reference to the organization of said corporation and the transaction of its business, and the plaintiff having dealt with it as a corporation, he is now estopped to question.the validity of its incorporation.
“5 — The defendants are entitled to a judgment in this case.”

The court subsequently filed the following conclusions:

“From these facts, as found, I am clearly of the opinion that Walker, Hopkins & Co., with whom the plaintiff dealt, and by whom the account was rendered, was a corporation de facto, if not

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Duray Development, LLC v. Perrin
792 N.W.2d 749 (Michigan Court of Appeals, 2010)
F. R. Johnson Products Co. v. Commissioner
1982 T.C. Memo. 110 (U.S. Tax Court, 1982)
Kriger v. South Oakland County Mutual Aid Pact
211 N.W.2d 228 (Michigan Court of Appeals, 1973)
Rohan v. Detroit Racing Association
22 N.W.2d 433 (Michigan Supreme Court, 1946)
State Ex Rel. Pardee v. Latourette
125 P.2d 750 (Oregon Supreme Court, 1942)
Detroit Trust Co. v. Allinger
261 N.W. 90 (Michigan Supreme Court, 1935)
State Ex Rel. Schlegel v. Munn
250 N.W. 471 (Supreme Court of Iowa, 1933)
Egekvist Bakeries, Inc. v. Benson
243 N.W. 853 (Supreme Court of Minnesota, 1932)
Berlin State Bank v. Nelson
204 N.W. 92 (Michigan Supreme Court, 1925)
Tisch Auto Supply Co. v. Nelson
192 N.W. 600 (Michigan Supreme Court, 1923)
City of Albuquerque v. Water Supply Co.
174 P. 217 (New Mexico Supreme Court, 1918)
Vernor v. Secretary of State
146 N.W. 338 (Michigan Supreme Court, 1914)
Metropolitan Casualty Insurance v. Basford
139 N.W. 795 (South Dakota Supreme Court, 1913)
Newcomb-Endicott Co. v. Fee
133 N.W. 540 (Michigan Supreme Court, 1911)
Lynch v. Perryman
1911 OK 406 (Supreme Court of Oklahoma, 1911)
Attorney General ex rel. Linnell v. Gay
162 Mich. 612 (Michigan Supreme Court, 1910)
Imperial Building Co. v. Chicago Open Board of Trade
87 N.E. 167 (Illinois Supreme Court, 1908)
Board of County Commissioners v. Trowbridge
42 Colo. 449 (Supreme Court of Colorado, 1908)
Whipple v. Tuxworth
99 S.W. 86 (Supreme Court of Arkansas, 1907)
Clark v. American Cannel Coal Co.
73 N.E. 1083 (Indiana Supreme Court, 1905)

Cite This Page — Counsel Stack

Bluebook (online)
6 L.R.A. 102, 43 N.W. 638, 76 Mich. 579, 1889 Mich. LEXIS 989, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eaton-v-walker-mich-1889.