Lewis v. Atlanta-Charlotte Airline Railway Co.

159 S.E.2d 243, 250 S.C. 528, 1968 S.C. LEXIS 225
CourtSupreme Court of South Carolina
DecidedFebruary 6, 1968
Docket18755
StatusPublished

This text of 159 S.E.2d 243 (Lewis v. Atlanta-Charlotte Airline Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis v. Atlanta-Charlotte Airline Railway Co., 159 S.E.2d 243, 250 S.C. 528, 1968 S.C. LEXIS 225 (S.C. 1968).

Opinion

Bussey, Justice.

Plaintiff’s 'intestate, allegedly came to his death as the result of being struck by a train of the defendant-appellant, [530]*530Southern Railway Company, in Pickens County, South Carolina, the engineer of the train at the time having been one Walter T. Morris, a resident of Atlanta, Georgia. Two actions were commenced under the caption of this case; one for the alleged wrongful death of plaintiff’s intestate, and the other under the survival act for the benefit of the estate.

Plaintiff’s counsel served on defendant’s counsel and on the said Walter T. Morris a notice of motion and affidavit seeking an order requiring the attendance of the defendant Southern Railway Company by and through its engineer, Walter T. Morris, for examination under oath pursuant to Sec. 26-503 of the 1962 Code of Laws of South Carolina, before the Master in Equity for Greenville County, in regard to various listed facts and circumstances of the accident which the plaintiff alleged were essential and necessary in the preparation of plaintiff’s case. The affidavit alleged, inter alia, and it is not denied by the defendant, that the named engineer is the sole person having the knowledge of the facts which the plaintiff sought to ascertain. Although served, Morris, the engineer, did not appear to interpose any objection, but the defendant Southern Railway appeared, and, over its opposition, the circuit court issued an order directing that Southern Railway Company be examined by and through the said Walter T. Morris “before the Master in Equity of Greenville County on August 15, 1967.”

Appeal is from the foregoing order and the only substantial question involved is the contention of Southern that a corporate party to an action cannot be examined, before trial, under Sec. 26-503 of the Code, through a subordinate employee who is neither an officer of the corporation nor an agent with general authority to act for the corporation. While the language of prior decisions of this court would clearly indicate that a corporate party can be examined through a subordinate employee, particularly where that employee is the sole person having knowledge of the facts sought to be ascertained, admittedly the precise point raised by Southern has never been squarely presented or passed [531]*531upon in any prior decision of this court. Code Sec. 26-503 does not specifically provide for the examination of a corporate party, and, naturally, does not provide specifically how a corporate party may be examined. That a corporate party may be examined pursuant to said statute has, however, been long established since the decision in the case of U. S. Tire Co. v. Keystone Tire Sales Co., 153 S. C. 56, 150 S. E. 347, 66 A. L. R. 1264. In some jurisdictions the statutory or practice rule provisions relating to the examination of a corporate party are quite specific as to the individuals through whom such an examination of the corporate party can be obtained. In Alabama, for instance, pursuant to statute, the factual information sought may be obtained from or through “* * * such officer, agent, or servant of the corporation as may be cognizant of the facts.” See Ex Parte City Sales Company, 264 Ala. 637, 88 So. (2d) 668.

On the other hand, by virtue of the language and construction of Rule 26(d) (2) and Rule 37(d) of the Federal Rules of Civil Procedure, the federal courts have almost universally held that the examination of a corporate party must be by and through either an officer or a “managing agent” of the corporate party. At least several states have substantially adopted the federal practice, by enacting statutes which in effect provide that the examination of a corporate party must be through an officer or “managing agent.” An annotation in 98 A. L. R. (2d) commencing on page 622 shows that the courts have experienced considerable difficulty in determining precisely who is a “managing agent” within the meaning of these statutory and rule provisions. It would appear that at least one jurisdiction, New York, has encountered enough difficulty with the term “Managing agent or employee” that it amended its statute and/or rule to delete the word, “managing” and allow a corporate party to be examined by and through any employee having knowledge of the pertinent facts. 98 A. L. R. (2d) 625.

The appellant cites no authority for its contention other than cases arising under the federal rules, or a state statutory [532]*532counterpart thereof, which specifically restricts an examination of a corporate party to either an officer or a managing agent. A research on our part has failed to disclose any case deciding the precise question now presented to us, arising in a jurisdiction where, as here, the statute does not spell out precisely what officers or employees of the corporate party may be examined, and, hence, we are without benefit of any persuasive judicial authority from other jurisdictions.

Although the precise point has not before been presented to us, the practice in this state for many years has been to require the examination of a corporate party, pursuant to Code Sec. 26-503, by and through the employee of the corporate party who was possessed of the information sought, without regard to whether such employee was either an officer or an agent with general authority to act for or bind the corporation. In Stepp v. Horton, 227 S. C. 432, 88 S. E. (2d) 258, a railway claims agent; in Williamson v. South Carolina Elec. & Gas Co., 236 S. C. 101, 113 S. E. (2d) 345, a service agent or repairman; in Barfield v. Dillon Motor Sales, Inc., 233 S. C. 26, 103 S. E. (2d) 416, a bookkeeper; in Mahaffey v. Southern R. Co., 175 S. C. 198, 178 S. E. 838, employees who had knowledge as to who placed certain freight cars in a particular location. In the absence of a statutory provision, similar to that prevailing in certain other jurisdictions, limiting the employees by and through whom the examination of a corporate party may be had, we see no compelling reason for disturbing the practice long followed in this jurisdiction.

Apparently the underlying thought and reason for the statutory and rule provisions, in some jurisdictions, limiting the employees by and through whom the examination of a corporate party may be had is that such party should not be bound by the testimony of an employee, who might not be amenable to the will of the corporation; who might be disloyal or untruthful; and who would not normally have the right to bind the corporation by his acts or statements. In accordance with such rationale, appellant [533]*533argues that the examination of it by and through its engineer would bind it to whatever the engineer might say and would in effect constitute a judicial admission on its part, and that it should not be so bound. There is nothing in .the record to indicate or even suggest that the engineer is disloyal to appellant, not amenable to its will, or untruthful. We are not presently called upon to decide precisely to what extent appellant may be bound by the testimony of the engineer. If and when it should appear that there is any question as to either the truthfulness or loyalty of the particular employee, a decision as to the extent, if any, to which the corporation might or might not be bound by his testimony would then be timely.

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Related

Barfield v. Dillon Motor Sales, Inc.
103 S.E.2d 416 (Supreme Court of South Carolina, 1958)
Williamson v. South Carolina Electric & Gas Co.
113 S.E.2d 345 (Supreme Court of South Carolina, 1960)
Stepp v. HORTON
88 S.E.2d 258 (Supreme Court of South Carolina, 1955)
United States Tire Co. v. Keystone Tire Sales Co.
150 S.E. 347 (Supreme Court of South Carolina, 1929)
Mahaffey v. Southern Ry. Co.
178 S.E. 838 (Supreme Court of South Carolina, 1935)
Ex Parte City Sales Company
88 So. 2d 668 (Supreme Court of Alabama, 1956)

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Bluebook (online)
159 S.E.2d 243, 250 S.C. 528, 1968 S.C. LEXIS 225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-atlanta-charlotte-airline-railway-co-sc-1968.