J. D. Pace & Co. v. Alexandria Electric Rys. Co.

70 So. 867, 138 La. 879, 1916 La. LEXIS 1543
CourtSupreme Court of Louisiana
DecidedJanuary 10, 1916
DocketNo. 20207
StatusPublished
Cited by6 cases

This text of 70 So. 867 (J. D. Pace & Co. v. Alexandria Electric Rys. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. D. Pace & Co. v. Alexandria Electric Rys. Co., 70 So. 867, 138 La. 879, 1916 La. LEXIS 1543 (La. 1916).

Opinion

SOMMERVILLE, J.

Plaintiff, an ordinary partnership, engaged in the real estate business, sues the Alexandria Electric Railways Company, the Kent Company, Limited, J. A. White, individually, and I. D. White, individually, in the sum of $5,000 as commissions on the sale of the Alexandria electric railway, under an alleged contract of employment with I. D. White, vice president and general manager of the Railways Company, and J. A. White, president of the Kent Company. Judgment is asked against the two companies for the sum named; and in the event the court should conclude that petitioner had no contract with said companies, or either of them, then in the alternative, that there be judgment in its favor and against the defendant companies in solido for $10,000 on a quantum meruit; and, [881]*881again, in the alternative, if no judgment should be rendered against both or either of said companies, then that there be judgment in the sum of $5,000, with interest, against I. D. White and J. A. White, individually, and in solido; and, again, in the alternative, that it have judgment as the court may deem meet, equitable, and just between the parties.

Exceptions were filed by the parties, and were overruled. The defendant corporations answered that plaintiff had no dealings or transactions with them with reference to the alleged cause of action upon which the suit is based, and that whatever dealings and transactions it had with I. D. White and J. A. White were at its own risk, for both of them were without authority or power either to represent or to bind the defendant companies by such dealings and transactions. They deny that I. D. White and J. A. White made any agreement to pay plaintiff a commission or compensation of $5,000, or any other sum. They deny that they are, or that either is, bound by any agreement made by any member of the board of directors of said companies. The Kent Company admits that it purchased all the bonds issued by the Alexandria Electric Railways Company, and a large portion of the stock, and subsequently purchased the remaining outstanding shares, but alleges that the two corporations were and are separate and distinct, although all of the directors of the railways company were directors of the Kent Company. The Kent Company had two directors on its board who were not directors on the board of the Railways Company. The Kent Company admits that Ernest Boehme entered into a contract with it whereby it sold all of the stock and bonds of the Alexandria Electric Railways Company to said Boehme for $80,000; but it denies that plaintiff brought, or procured, or was the cause of securing said Boehme as the purchaser of said property, and alleges, on the contrary, that the negotiations were entered into, had, and were carried on directly with the said Boehme without the said plaintiff being the procuring cause thereof, or having anything really to do therewith, or that, if plaintiff did have anything to do in interesting the said Boehme in said purchase, that it was without the corporate consent or authority of defendants. Defendant the Kent Company further admits that the sale of the property was made on the 29th day of April, 1913, and delivery was made May 1, 1913.

There was judgment in favor of plaintiff and against the Kent Company, Limited, in the sum of $4,000, being 5 per cent, commission on the selling price of the railroad. There was also judgment in favor of the defendants, the Railways Company, J. A. White, and I. D. White, and against plaintiff, dismissing the suit as to them. Plaintiff and the Kent Company have appealed. Plaintiff has answered the appeal taken by the Kent Company, and asks that the judgment be increased to $5,000. Plaintiff also filed a plea of estoppel, claiming that the Kent Company was estopped from denying its liability on the amount sued for, for the reason that it is shown by the whole record that while the contract with it may have been unauthorized originally, the defendant, with knowledge of the unauthorized contract, made by one of its agents, accepted the labor of plaintiff, and cannot repudiate the part of the contract that is onerous while accepting that part which was beneficial.

At the time of the bringing of this suit, the Alexandria Electric Railways Company had been reincorporated under the name of the Southern Traction Company.

The boards of directors of the Alexandria Electric Railways Company and the Kent Company were practically the same persons. I. D. White was vice president and general manager of the Railways Company, and his [883]*883brother, J. A. White, was president of the Kent Company.

The Kent Company was organized for the purpose of dealing in real estate, buying and selling of live stock and other property, to own or lease and operate electric and other street railways, waterworks, sewerage systems, lighting plants, etc. Under these powers it bought and owned all of the stock and bonds of the Alexandria Railways Company; and it was this railway company, or the stock or bonds of said company which were sold to Boehme and his associates, and for which sale plaintiff is claiming a commission.

The Kent Company was not only the owner of the railway company, but the, boards of directors of the two companies were the same, and these boards interlocked one another. The corporations were virtually one and the same, although holding two separate charters. The Railways Company was under the general management of I. D. White, the vice president of that company, and one of the directors of the Kent Company; and Mr. White admits having entered into contract with plaintiff to sell the railroad for $85,000; but the Kent Company denies all knowledge of the contract, and that White was authorized to act for it in the premises; but the testimony of almost every director of the Kent Company shows that he knew that plaintiff was engaged in procuring a purchaser of the railroad, although the board of directors of the Kent Company had not specially authorized such employment. The correspondence between plaintiff and • prospective buyers was regularly submitted to I. D. White, one of the directors of the Kent Company, and the members of the board of directors were constantly kept informed as to the progress of the efforts of the plaintiff, extending through some three months, as is evidenced by frequent communications offered in evidence on the trial of the cause. In the letter of January 3, 1913, written by B. J. Weaver, of Dayton, Ohio, to the plaintiff company, the name of Mr. Ernest Boehme is particularly mentioned as one of the parties who was interested in the proposition to buy the railroad; and it was Mr. Boehme and his associates who actually made the purchase on April 29, 1913. This letter is as follows:

“Gentlemen: In reply to your favor of December 31, 1912, I beg to state that Mr. Ernest Boehme, one of the parties who will be associated with us if this proposition is taken over by us, will call upon you in the next few days or week. He left Dayton on Wednesday, on a trip to Tyler, _ Texas, and after closing his business there, which will no doubt require not more than a few days, he will then call upon you and look over your proposition. Any courtesies which you show him will be appreciated by us.
“Yours very truly, E. J. Weaver.”

January 9, 1913, after a purchaser of the railroad was found by plaintiff, the board of directors of the Kent Company, Limited, met and authorized two of its directors, I. D. White and J. W.

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Bluebook (online)
70 So. 867, 138 La. 879, 1916 La. LEXIS 1543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-d-pace-co-v-alexandria-electric-rys-co-la-1916.