Mason v. Farmers Bank

12 Va. 84
CourtSupreme Court of Virginia
DecidedMarch 15, 1841
StatusPublished

This text of 12 Va. 84 (Mason v. Farmers Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mason v. Farmers Bank, 12 Va. 84 (Va. 1841).

Opinion

Tucker, P.

The argument on the merits of this case has been suspended, for the purpose of settling a preliminary question as to the character of the action. It is a suit brought, not against The Farmers bank of Virginia, which is a chartered institution, but against the branch of that bank at Petersburg, which is not a corporation in itself, but is only an agent of the corporation. Looking to the charter (which though not found in the verdict, is a public law of which we must take notice, Stribling v. Bank of the Valley, 5 Rand. 132.) the court must know that The Farmers bank is a char[88]*88tered institution, and has a branch established by law in the town of Petersburg. Two questions then present themselves: 1. Whether an action can be maintained against the president and directors of the office of <^scount an(i deposit at Petersburg? and 2. Whether this action is so brought ?

As to the first, it may be considered as definitively settled by the judgment of this court in the case of Tompkins v. The Branch Bank of Virginia; in which two judges, who did not sit in that cause, express, in this case, their entire concurrence. The grounds upon which that decision was made are believed to be unassailable ; and we see no reason to depart from a precedent, which has settled a point of practice and the construction of a statute, for the future government of the profession.

2. Is this an action against the corporation itself, or is it an action against the Branch Bank ? To this it may be answered, in the first place, that there is no sensible distinction in this respect, between the case at bar and that of Tompkins v. The Branch Bank of Virginia, so that, without more saying, that case would determine this. But, secondly, a reference to the declaration ascertains beyond question, that the demand is against the branch and not against the corporation, and the assumpsit is laid accordingly. [The judge quoted the words of the declaration, and said] Language cannot be more plain, and argument would be thrown away in an attempt to prove more clearly, that the action is against the Branch Bank, and not against the corporation itself. It is against the agent, not against the principal. The two boards are distinct, composed of distinct and different individuals, with different powers and authority. The Mother Bank represents the corporation: the Branch Bank does not; it is the mere agent of the corporation, appointed by the stockholders indeed, but only for the management of the branch, “under such agreements [89]*89and subject to such regulations as shall be deemed proper, not contrary to law or to the constitution of the Bank.” Hence it is obvious, that the two bodies of directors are distinct, and that a suit against the president and directors constituting the bank agency at Petersburg, cannot be a suit against the president directors and company, representing, and indeed constituting the corporation itself. There is, indeed, a further distinction between the Branch and the Bank itself, in their name and style: the true name and style of the former is “ The president and directors of the office of discount and deposit ;” the style of the latter is “ The president, directors and company of the Farmers Bank of Virginia.” The Branch Bank is not the company; and the words “ and company” are in the declaration improperly added to their style. Strike them out, and the company is not sued: insert them, and you erroneously bind up with the company as constituting the corporation, not those who do constitute it, but a set of mere agents who do not.

Many ingenious suggestions have been made for transposing the words of the declaration, so as to make this an action against the corporation. It would be useless to examine them in detail, and to prove their unreasonableness. Suffice it to say, that where the meaning of words is plain, there can be neither necessity nor propriety in additions, transpositions, and rejections as surplusage, for the purpose of meeting the exigencies of a plaintiff’s case. Such is the case here. There is no room for difficulty or doubt, as to the true interpretation of this declaration; and I cannot therefore consent to tear words from their context in one place, and insert them in others, or to reject words as surplusage, in order to make it that which it is not. Nor can I admit for a moment, that this is to be likened to the construction of wills &c. The very authority cited at the bar, repels the idea. “ There is a difference between writs, declarations &c. and leases and obligations; for if the name [90]*90of a corporation be mistaken in a writ, a new writ may be purchased of common right, but it were fatal if mistaken in leases and obligations, and the benefits of them would be wholly lost; and therefore, one ought to be suPPorte(^ an<^ the other not.” 10 Co. 125. Gilb. C. B. 234. cited 1 Bos. & Pull. 42. 4 Bac. Abr. Misnomer & Addition. D. p. 760.

It was argued, .that the error here is cured by the statute of jeofails. This can only be supported upon what I conceive to be a misconception of the character of the error. It seems to be supposed, that this is but a case of misnomer, which the party must object by plea in abatement. But in my judgment the error lies deeper, and is more fatal. There is, indeed, a misnomer of the Branch Bank in the addition of the words “ and company :” and this, I concede, might be stricken out. But the essential error is, that the suit is brought against defendants who have no corporate character, and yet not against them in their individual characters. Considering the defendants as the Branch Bank (the mere agent of the corporation), and not as a corporation itself, it is a non-entity, incapable of suing or being sued, and incapable of contracting, except on the part of the corporation itself. The declaration makes a demand against parties, who cannot be made liable to an action, and against whom no judgment can ever be rendered. Now, where this is the case, the defect is beyond the cure of a verdict, or of the omnipotent statute of jeofails. “ No proof at the trial can make good a declaration, which contains no grounds of action on the face of it;” Rushton v. Aspinwall, 2 Doug. 679. and there can be no ground of action against persons who cannot contract but as agents for others, and are incapable of being sued.

The same answer may be given to the cases which have been cited. They were cases of mere misnomer. In one of them, The mayor and burgesses of Stafford v. Bolton, 1 Bos. & Pull. 40. a part of the plaintiffs’ [91]*91name, viz. “ of the county of Stafford,” was omitted. Eyre, C. J. said—“A corporation is a mere creature of the crown, having no essence but what is derived from its name. On strict reasoning, therefore, I should be inclined to think, that if a corporation sued by a name that did not belong to it, it would be as nothing.” And a fortiori, if it were defendant, for a judgment against a non-entity would be null: it could not be carried into effect; or if attempted to be executed upon the effects of a real corporation, it would be no protection to the officer against their action. “In the case” (continues the judge) “of a mistake in the name of an existing person having a right to sue, it may be pleaded in abatement. But the case in Brooke, Misnomer 73.

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Bluebook (online)
12 Va. 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mason-v-farmers-bank-va-1841.