Hall v. Vermont & Massachusetts Railroad

28 Vt. 401
Supreme Court of Vermont·Decided February 15, 1856·Published·Cited by 30 cases

Opinion

The opinion of the court was delivered by

Isham, J.

The auditor has reported the sum of $893.55, as being due to the plaintiff on his account, for which sum judgment was rendered by the county court and on which both parties have taken exceptions. The charges in the plaintiff’s account, No. 80, 81, 82, amounting with the interest thereon to the sum of $119.39, were properly disallowed. Those services were rendered by the plaintiff at Boston, in conjunction with other citizens of Brattleboro, in procuring the charter of this company, and they appear to have been voluntarily rendered, as - it was anticipated by him that the Construction of the road would give an increased value to his real estate. The plaintiff could not have been employed by the defendants to render those services, for the corporation at that time had not a legal existence, nor has there been any subsequent promise to pay for them; and certainly, none can be implied against parties, when, at the time the services were rendered, they were incapable of making an express contract.

The charges No. 83, 84, 85, 88, 90, amounting to $ 18,12 were for services in attending various meetings of the corporators^ after the charter was granted, and previous to the organization of the company in the choice of directors. Those charges, we think, Viere properly allowed. The plaintiff with others and their successors were, by the charter, made a corporation, having the powers and privileges, and subject to the duties and liabilities contained in the general act of Massachusetts,- relating to railroad corporations. Among other matters required by the charter, subscriptions-[407] to the capital stock of the company to the amount of five thousand shares, were necessary before án organization could be perfected. The duty rested up’ón the corporators to do whatever Was required by the charter to effect that result. It may be true that the company Were not invested with full corporate powers until after the stock was subscribed, and their organization perfected in the choice of directors ; yet, the corporation was in esse before that event; it had an inchoate existence, and the corporators had the power, and were so far the agents of the corporation as to bind them by any act which they Were required to do, or which was necessary to perfect their organization under the charter. Upon that principle was decided the case of the Vt. Central R. Co. v. Clayes, 21 Vt. 30 The auditor has found that the services were necessary, and though no express promise has been made by the defendants to pay for them, we think, under the circumstances, one will be implied.

The charges Nos. 86, 87, 89, 91, 92, 93, 94, 1, 3, 5, and the charges for cash expenditures, Nos. 4, 6, 8, were also, we think, properly allowed. It appears from the report of the auditor that on the 21st of May, 1844, the corporators passed a vote that “all “ reasonable expenses incurred in taking stock shall be audited and “ allowed by this board.” At the same time the plaintiff and one Everett were appointed a committee to obtain stock subscriptions at Boston. In pursuance of that vote stock subscriptions were procured, so that the company were organized on the 22d of November, 1844, and directors were chosen. On the 15th of January, 1845, a vote was passed by the directors, of which board the plaintiff' was a member, “ that a committee be appointed to obtain additional subscriptions to the stock of the corporation to an amount not exceeding $ 300.000, and to allow such compensation as the board shall deem proper,' — provided that the compensation shall, in no case, exceed one per cent on the amount of the subscriptions so obtained.” The charges above enumerated are for services rendered under those votes. The auditor has stated that the services were rendered, that fhe charges are reasonable in amount, and, the corporation having received the benefit of them, we think they are liable for the amount allowed. We are also satisfied that under the vote of May 21, 1844, the plaintiff’s claim is not limited to cash expenditures merely, but that he is also entitled to a reasonable [408] compensation for Ms personal services. In the case, Regina v. The Gov. & Guard of the Poor of Kingston on Hull, 20 Eng. L. & Eq. R. 149, the words “ expenses incurred” were limited to cash expenditures. In that case the town clerks were directed by act of Parliament to prepare lists of persons entitled to vote for members of Parliament, and the expenses incurred were to be repaid. Frojn the phraseology of the act, it was considered to be the intention to add to the official duty of the town clerks the performance of that duty without additional compensation, except for cash advances. That such additional duties may be imposed on public officers in that manner, was decided in that case, as also in the case of Jones v. Mayor of Carmathan, 8 Mes. & Wels. 605; But, we think, a different construction should be placed on this vote of the company. The plaintiff was not in the disehaz’ge of the duties of a public officer, neither was it competent for the board of corporators to impose on Mm the performance of those duties without compensation. The vote contains an express request for Mm to perform those services, and, we think, the intention was that he should be paid for them.

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