Hawkins v. Turner

303 S.E.2d 164, 166 Ga. App. 50, 1983 Ga. App. LEXIS 2063
CourtCourt of Appeals of Georgia
DecidedMarch 16, 1983
Docket65060
StatusPublished
Cited by27 cases

This text of 303 S.E.2d 164 (Hawkins v. Turner) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hawkins v. Turner, 303 S.E.2d 164, 166 Ga. App. 50, 1983 Ga. App. LEXIS 2063 (Ga. Ct. App. 1983).

Opinions

Carley, Judge.

Appellant-Hawkins was the subcontractor hired by the general contractor, Clark & Clark (Clark), to install a sprinkler system in a new store owned by appellee-Turner. Turner and two adjoining store owners brought the instant action against Clark and appellant for damages caused by a water flood, the source of which was the sprinkler system installed by appellant. A more detailed factual background may be found in Turner v. Clark & Clark, 158 Ga. App. 79 (279 SE2d 323) (1981), in which this court reversed a grant of summary judgment in favor of Clark. Just before the case came to trial, Clark was voluntarily dismissed, leaving appellant as the sole defendant. The jury returned a verdict in favor of Turner and the other store owners and Hawkins appeals.

1. Appellant contends that any liability for negligence in installing the sprinkler system is the responsibility of Hawkins Heating and Plumbing Company, Inc., a corporation, and not of himself individually. Appellant’s motion for summary judgment predicated on this contention was denied on the grounds that material issues of fact remained. Subsequently, partial summary judgment in favor of appellees was granted as to this issue. The trial [51]*51court’s order provided that the contracting entity with the contractor, Clark, was appellant individually and not the corporation, Hawkins Heating and Plumbing Company, Inc. The trial court also granted appellees’ motion in limine prohibiting appellant from introducing evidence at trial concerning the purported liability of the corporation.

The undisputed evidence on motion for summary judgment showed the following: Appellant signed the contract with Clark for installation of the sprinkler system as follows: “Hawkins Plumbing Company, Inc., B. L. Hawkins.” However, there is no corporation having the name “Hawkins Plumbing Company, Inc.” Appellant formed a corporation in 1967 named “Hawkins Heating and Plumbing Company, Inc.” of which he was the major stockholder and president. “Hawkins Plumbing Company, Inc.” was never registered as the trade name of “Hawkins Heating and Plumbing Company, Inc.”

Appellees contend that since “Hawkins Plumbing Company, Inc.” was neither a corporation nor the registered trade name of Hawkins Heating and Plumbing Company, Inc., appellant bound himself individually on the contract with Clark. Appellant contends that he never represented to Clark that he was executing the contract in an individual capacity and insists that he executed the contract as the president of a corporation.

That appellant did not indicate his representative capacity in his signature is not conclusive on the question of his individual liability. See Bowers v. Salitan, 97 Ga. App. 877 (104 SE2d 667) (1958); Cochran v. Grand Theater Co., 29 Ga. App. 481 (3) (115 SE 926) (1922); 19 CJS707-708, Corporations, § 1138a. Compare Dobbins v. Etowah Mfg. Co., 75 Ga. 238 (1886) (corporate charter required particular form of execution). Parol evidence is admissible to show that an individual who failed to indicate his representative capacity nevertheless signed a contract as an officer of a corporation and that it was the intent of the parties to bind the corporation. Bowers v. Salitan, supra; Evans v. Smithdeal, 143 Ga. App. 287, 289 (1) (238 SE2d 278) (1977). See generally Dundon v. Forehand, 152 Ga. App. 749, 751 (263 SE2d 687) (1979).

“An undertaking by an individual in a fictitious or trade name is the obligation of the individual.” Nat. Cash Register v. Sikes, 94 Ga. App. 391, 392 (94 SE2d 782) (1956). See also Dehco, Inc. v. Greenberg, 105 Ga. App. 236 (124 SE2d 311) (1962). Similarly, “if a contract is entered into by an agent in the name of a nonexistent principal, the inference is that the agent is bound on it.” Gifford v. Jackson, 115 Ga. App. 773, 775 (156 SE2d 105) (1967). However, amere “misnomer of a corporation in a written instrument, or in a law, or in a judicial [52]*52proceeding is not material or vital in its consequences, if the identity of the corporation intended is clear or can be ascertained by proof,, 6 Fletcher, Cyclopedia of the Law of Private Corporations 182-183, § 2444 (Perm. Ed.). (Emphasis supplied.) See also 18 CJS 573, Corporations, § 172. Cf. Smith v. Hedenberg, 189 Ga. 678, 680 (2) (7 SE2d 234) (1940); United Rentals Systems v. Safeco Ins. Co., 156 Ga. App. 63, 66 (2) (273 SE2d 868) (1980); Robinson v. Reward Ceramic Color Mfg., 120 Ga. App. 380, 381 (2), 382 (4) (170 SE2d 724) (1969); South Cobb Builders Supply v. Sou. Concrete Prods. Co., 116 Ga. App. 779, 782 (159 SE2d 121) (1967); Wall v. First State Bk. of Blakely, 86 Ga. App. 118 (70 SE2d 917) (1952).

“A corporate name usually consists of several words, and an omission... of one or more is not so likely to confuse and mislead, or to hide the identity of the entity intended, as would be the case as to natural persons. The important thing is to determine what corporation the parties intended, for it is the intent of the parties that controls. Error in the use of the corporate name will not be permitted to frustrate the intent which the name was meant to convey, and to find out the identity of the corporation intended, resort may be had to evidence aliunde.” 6 Fletcher 182, § 2444, supra. See generally Allen v. People’s Bank, 133 Ga. 150 (1) (65 SE 379) (1909); West v. Fed. Deposit Ins. Corp., 149 Ga. App. 342, 347 (254 SE2d 392) (1979), aff'd 244 Ga. 396 (260 SE2d 89) (1979); Evans v. Smithdeal, supra, at 290. Cf. Golden’s Foundry & Machine Co. v. Wight, 35 Ga. App. 85, 86 (3) (132 SE 138) (1925). We hold, therefore, that an agent who executes a contract using a misnomer of a corporation is not as a matter of law conducting business either in a fictitious or trade name or in the name of a nonexistent principal. See generally West v. Fed. Deposit Ins. Co., supra at 348.

Whether the contract was executed under any circumstances tending to import Clark’s knowledge of appellant’s agency for a corporation or of the identity of the corporation are questions of fact. See generally Whitlock v. PKW Supply Co., 154 Ga. App. 573, 574 (269 SE2d 36) (1980); Brown-Wright Hotel Supply Corp. v. Bagen, 112 Ga. App. 300, 303 (145 SE2d 294) (1965). Further, appellant’s use of the designation “Inc.” in signing “Hawkins Plumbing Company, Inc.,” raises the inference that Clark knew that the contract execution was that of a corporate entity. See Williams v. Appliances, Inc., 91 Ga. App. 608 (86 SE2d 632) (1955). See generally Collins v. Brayson Supply Co., 157 Ga. App. 438, 439 (278 SE2d 87) (1981); Stephens v. Bibb Investment Co., 54 Ga. App. 321 (187 SE 709) (1936). On motion for summary judgment, all inferences must be construed favorably to appellant as the non-movant. Tipton v. Harden, 128 Ga. App. 517, 519 (4) (197 SE2d 746) (1973).

[53]*53It was the burden of appellees as movants to establish the absence of any issue of material fact. West v. Fed. Deposit Ins. Co., supra, at 348. Appellees failed to carry that burden. It could not be determined as a matter of law that appellant was individually liable on the contract, as this was a question for the jury’s determination. See Collins v. Brayson Supply Co., supra; Rogin v. Dimensions South Realty Corp., 153 Ga. App. 75, 77 (264 SE2d 555) (1980); West, 149 Ga. App. at 348, supra; Patterson v. Duron Paints of Ga., 144 Ga. App.

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Bluebook (online)
303 S.E.2d 164, 166 Ga. App. 50, 1983 Ga. App. LEXIS 2063, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hawkins-v-turner-gactapp-1983.