Haynes v. Brown

36 N.H. 545
CourtSupreme Court of New Hampshire
DecidedJuly 15, 1858
StatusPublished

This text of 36 N.H. 545 (Haynes v. Brown) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haynes v. Brown, 36 N.H. 545 (N.H. 1858).

Opinion

Bell, J.

On the motion for a nonsuit the question arises whether competent evidence was presented to the jury, on which they could be justified in finding a verdict for the plaintiff.

1. Was there competent evidence of the existence of the corporation, as alleged ?

[561]*561“ The existence of a corporation, incorporated by private .act, may be shown, either by an exemplified copy of an act, authenticated by affixing thereto the seal of the State, without other proof; by a sworn copy of the same, or by admission ; all such proof being accompanied by proof of acts of user under the act or charter.” Ang. & Am. Corp. 572 ; State v. Carr, 5 N. H. 367, and cases cited; 1 Greenl. Ev., sec. 480.

Where the corporation was a domestic corporation, the printed statute book, as printed by the printer to the State, has been admitted as evidence of the act of incorporation. Ib.; Wood v. Jefferson Co. Bank, 9 Cowen 205 ; Anon., 2 Salk. 566.

In the case of New-Boston v. Dunbarton, 12 N. H. 409, and 15 N. H. 201, and in Bow v. Allenstown, 34 N. H. 351, it was held that in a case where no charter or act of incorporation could be found, a charter may be presumed from the long continued exercise of corporate powers without objection; and in the last case, that a grant of corporate powers may be implied, where otherwise the manifest purpose of any legislative act would be defeated.

In this case no sworn or authenticated copy of any act of incorporation was produced, and no copy in the authorized printed statutes was shown, and no evidence of loss, or secondary proof was offered.

The courts will not ex officio take notice of private acts. They must be proved. 1 Ch. PI. 218; 1 Greenl. Ev., sec. 480. They will not be noticed unless given in evidence. Griswold v. Kemp, 1 C. & M. 635.

Though the acts of user were sufficient, if a charter had been shown, there was no competent evidence of an act of incorporation, and there was consequently a failure to prove the existence of the corporation in the ordinary mode.'

But besides the proof of a corporation by the two steps of showing a charter and the action of the grantees under it, or a user of the franchise, evidence may be offered which goes to the fact of the existence of the corporation without reference to these successive steps. Such is the admission of the existence of the [562]*562corporation by the party against whom the evidence is offered, either by his express declarations, or by his acts, necessarily, or by fair construction and inference, implying the fact. Ang. & Am. Corp. 574; Congregational Society v. Perry, 6 N. H. 164.

No declarations of the defendant were shown. But it was proved by one witness that he was present when the corporation was organized by the choice of officers, and that the.defendant, at meetings of the corporation, and at meetings of the directors, acted as its president, and that shortly after its organization the corporation commenced business. Another witness testified that he was secretary and treasurer of the corporation, and that he received a number of books as books of the corporation, of which he produced one, which purported to be a stock-book, and he said he had a book of certificates of stock, though he thinks no certificates were issued. The note produced is signed the Manchester Car and Machine Works, by Hiram Brown, (the defendant) president.

These circumstances, very meagre indeed compared with the evidence which might be supposed to exist, seem to us to have a strong tendency to show an admission by the defendant of the fact that there was a corporation duly constituted and organized by the name of the Manchester Car and Machine Works, on which, as against him, the jury would have the right to regard that fact as proved.

It is for them and not for the court to judge of its weight. The absence of other evidence of the organization and acts of this corporation, or company, is somewhat explained and accounted for by the testimony of the secretary and treasurer, who says he had the books, but has them not at this time, nor any knowledge where they are.

2. It is wholly immaterial in this case, whether a corporation has been legally organized or not, or whether it has complied with the requirements of the charter, or laws, or not. That is a matter to be settled in a suit between the government which created the corporation and the corporators, and not collaterally, [563]*563in any action between third persons and either the corporation or the corporators. State v. Carr, 5 N. H. 371; Ang. & Am. Corp. 575, and many cases cited.

3. The proper and usual evidence that a party plaintiff is a stockholder of a corporation, is the production and proof of his certificate, which is in his own custody and control, but the evidence of the same fact by a stranger must ordinarily be derived from the books of the corporation, which are evidence in the nature of public records, as to every body, of the corporate proceedings. The absence of these records was sufficiently accounted for to make parol evidence of the same matters admissible. The evidence tended to show that the defendant was a stockholder. His attendance at the meetings, and acting as the president, was competent proof for this purpose. If he was not a stockholder, it would be an answer to the action, and it was in the defendant’s power readily to show it; if he offers no evidence, a jury would be warranted to infer from these circumstances that he was a stockholder. In Chesley v. Pieree, 32 N. H. 402, the court declined to decide that either a certificate or payment was essential to constitute a stockholder. If a party, with the assent of the grantees or of the corporation, has assumed the position and duties of a stockholder, he may be held to the responsibilities of one, without either payment or a certificate. The evidence has a tendency to prove that there were other stockholders. If so defacto, it is not material that they were legally such.

It might be of consequence, in a suit for assessments, to show that some amount of stock was limited and fixed by the charter, or the corporation. Littleton Mg. Co. v. Parker, 14 N. H. 543 ; Central R. R. v. Johnson, 30 N. H. (10 Foster) 390.

But in an action against the individual stockholder to charge him personally, because the corporation have failed to perform their duties, this seems immaterial. The stockholder is made, by the statute, “ jointly and severally liable for all debts, &c., of the corporation, until the whole amount of the capital fixed and limited by such corporation shall have been paid in, and a certificate [564]*564thereof shall have been made and recorded,” &c. (Laws of 1846, chap. 321⅜ sec. 2 ; Comp. Stafc., 312.) Until such amount is fixed, the condition on which the stockholders are- exonerated from individual liability cannot be performed.

4.

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Bluebook (online)
36 N.H. 545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haynes-v-brown-nh-1858.