House v. Bank of Lewisport

198 S.W. 760, 178 Ky. 281, 1917 Ky. LEXIS 711
CourtCourt of Appeals of Kentucky
DecidedDecember 7, 1917
StatusPublished
Cited by2 cases

This text of 198 S.W. 760 (House v. Bank of Lewisport) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
House v. Bank of Lewisport, 198 S.W. 760, 178 Ky. 281, 1917 Ky. LEXIS 711 (Ky. Ct. App. 1917).

Opinion

Opinion op the Court by

Judge Miller

Affirming in the first case and reversing in the second case..

This appeal involves the construction of section 571 of the Kentucky Statutes, which reads as follows:

“All corporations except foreign insurance companies formed under the laws of this or any othér state, and [282]*282carrying on any business in this state, shall at all times have one or more known places of business in this state, and an authorized agent or agents thereat, upon whom process can be served;'and it shall not be lawful for any' corporation to carry on any business in this state, until it shall have filed in the office of the Secretary of State a statement, signed by its president or secretary, giving the location of its office or offices in this state, and the name or names of its agent or agents thereat upon whom pro-cess can be served; and when any change is made in the location of its office or offices, or in its agent or agents, it shall at once file with the Secretary of State a statement of such change; and the former agent shall remain agent for the purpose of service until statement of appointment of the new agent is filed; and if any corporation fails to comply with the requirements of this section, such corporation, and any agent or employe of such corporation, who shall transact, carry on or conduct any business in this state, for it, shall be severally guilty of a misdemeanor, and fined not less than one hundred nor more than one thousand dollars for each offense. ’ ’

The appellee, the Bank of Lewisport, a Kentucky corporation, complied with the statute by filing in the office of the Secretary of State, in 1895, a statement wherein it declared that the bank’s principal office was at Lewisport, Hancock county, Kentucky, and that Tom B. Pell and B. II. Poindexter were its agents there for service of process.

Pell was president and Poindexter was cashier of the bank in 1895 when the statement was filed. In 1902 Poindexter resigned as cashier and moved to Owensboro, Ky., in the adjoining county, and about fourteen miles from Lewisport. Pell continued to live in Lewisport and to act as the president and the designated agent of the bank for service of process until his death on June 21,1912.

After Poindexter moved to Owensboro he occasionally visited Lewisport, but had no business connection with the bank unless his former designation as agent for the service of process might be so considered. After the death of Pell in 1912, Poindexter continued to reside at Owensboro, but was frequently absent therefrom on business. But, Poindexter never resigned as such agent, nor was he removed, nor was any other agent appointed in his place or in the place of Pell, until the appointment of S. T. McGill on June 21, 1916.

[283]*283On September 24,1915, the Bank of Lewisport filed its action in the Hancock circuit court seeking to recover judgment from the appellant House, upon six promissory notes aggregating $5,188.75. Only the last-three notes, aggregating $1,687.75, were executed after the death of Pell. By his answer House pleaded usury; and he further sought to defeat the collection of the notes upon the ground that the bank had failed to file in the office of the Secretary of State a new statement showing a change in its agent for the service of process required by section 571, supra, after the death of Pell in 1912.

A jury was waived and upon a trial of the case by the court the usury was excluded, but House’s defense as above indicated was disregarded and judgment given against him. His appeal is the first case styled in the caption.

On July 29, 1916, the Commonwealth filed a penal action against the Bank of Lewisport in the Hancock circuit court seeking to recover a penalty of $1,000.00 from the bank upon the ground that it had been conducting its business in Hancock county without having filed in the office of the Secretary of State a statement giving the location of its place of business and its agent thereat upon whom process could be served, as is required by section 571, supra.

Being of the opinion that the offense, if any, had been committed in Franklin county, the county in which the certificate should have been filed, and that the Hancock circuit court was, therefore, without jurisdiction, the circuit court dismissed the penal action. The Commonwealth’s appeal is the second case styled in the caption.

The cases were tried upon substantially the same facts, -were argued together in this court, and will be disposed of in one opinion.

These appeals present a new question in this court. In Oliver v. Louisville Realty Co., 156 Ky. 628, and in other cases construing section 571 of the Kentucky Statutes, this court has held, in conformity with the language of the statute, that it is unlawful for any corporation to carry on any business in this state before it has filed in the office of the Secretary of State a statement giving-the location of its office in this state and the name of an agent thereat upon whom process can be served; -and, that any contract made by a corporation before it had filed its statement was void because it was made in yio[284]*284lation of law. Fruin-Colnon Contracting Co. v. Chatterson, 146 Ky. 504, 40 L. R. A. (N. S.) 857; Hunter v. Big Four Auto Co., 162 Ky. 781.

These appeals, however, present a different question. Here the hank did fully comply with the statute in 1895; and certainly it was lawfully doing business from that date until Pell’s death in 1912, in so far as the statute could affect that question. The question for .decision, therefore, is this: Is the contract of a corporation made after the death or removal from the county of its agent for the service of process, void under section 571 of the Kentucky Statutes, where no new agent has been designated for the service of process? If a contract of this character is unlawful it cannot be enforced, under the well established principle that the courts will not afford relief to a violator of the law. But if there is no statutory prohibition upon the doing of business after the death or removal of the agent and before the appointment of a new agent, the contracts so made are not invalid, although the offender may be punished., House contends, and to succeed he must show, that his notes given for money borrowed after Pell’s death were prohibited by the statute; and in support of this contention he relies upon that provision of section 571, supra, which provides that when any change is made in its agent the corporation shall at once file with the Secretary of State a statement of such change.

It is insisted that this language prohibits the corporation from doing business until it files another statement designating a new. agent upon whom process can bé served, thus bringing the case within the rule announced in Oliver v. Louisville Realty Co., supra. .But the statute does not so declare'; and, it is apparent from the context that it cannot be so construed, since the next clause in the statute expressly provides that when ány change is made- in the agent, the former agent shall remain agent for the service of process until a statement of appointment of the new agent is filed.

Section 571, supra, contains three general provisions covering a like number of subjects. First, it requires the corporation to have a place of business in the state and an agent thereat upon whom process can be.

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Cite This Page — Counsel Stack

Bluebook (online)
198 S.W. 760, 178 Ky. 281, 1917 Ky. LEXIS 711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/house-v-bank-of-lewisport-kyctapp-1917.