McCandless v. Inland Acid Co.

37 S.E. 419, 112 Ga. 291, 1900 Ga. LEXIS 130
CourtSupreme Court of Georgia
DecidedNovember 28, 1900
StatusPublished
Cited by5 cases

This text of 37 S.E. 419 (McCandless v. Inland Acid Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCandless v. Inland Acid Co., 37 S.E. 419, 112 Ga. 291, 1900 Ga. LEXIS 130 (Ga. 1900).

Opinion

Lumpkin, P. J.

The Inland Acid Company brought, in the superior court of Haralson county, an action against J. M. McCandless and others, for the recovery of a lot of land, the mineral interests in three other lots, and for injunction, the cancellation of certain deeds, and other relief. The defendants in their answer disclaimed title to the lot first indicated, and at the trial of the case in the superior court at its January term, 1899, the entire controversy seems to have been resolved into a determination of the question whether or not the plaintiff was entitled to recover the mineral interests in the three lots, and, as a consequence, to a cancellation of the deeds described in its petition. Eelatively to the adjudication of this question, 'the plaintiff stood squarely upon a claim of legal title to the mineral interests, and did not in its petition set up, or by its evidence attempt to show, any equitable ground for recovery. The case came to the March term, 1899, of this court, upon a bill of exceptions sued out by the defendants, in which error was assigned upon the direction by the trial court of a verdict in favor of the plaintiff. See 108 Ga. 618. It appeared from the record then before us that both sides claimed title to the property in dispute, viz., the aforesaid mineral interests, under one M. T. Singleton. In the official report preceding the opinion of this court it is stated that the action was “ based upon a deed to [293]*293the plaintiff from one Singleton, dated January 9, 1895, and recorded July 9, 1897also that “Defendants relied upon a deed to the property in question, from the sheriff to one of them, dated and recorded on March 21, 1896, and made in pursuance of a sale under executions issued upon judgments against Singleton, rendered January 22, 1896.” The Singleton referred to was M. T. Singleton. We reversed the judgment on the ground and for the reasons set forth in 108 Ga., supra. A second trial in the superior court was had at the July term, 1900, thereof, the plaintiff having in the meantime filed an amendment to its original petition, alleging that, for various reasons which were fully set forth, the judgments upon which were issued the executions under which the .sheriff’s sale was had were null and void. The defendants demurred to specified paragraphs of the plaintiff’s amendment. The ■demurrer as to all of them save two was overruled, and as to these two it was sustained. After the close of the testimony, the court .again directed a verdict for the plaintiff, and the defendants sued ■out a bill of exceptions, assigning error upon this action, and also upon the refusal to sustain in toto its demurrer to the plaintiff’s .amendment. By a cross-bill of exceptions the latter alleged error in adjudging that the demurrer was, as to the two paragraphs of the amendment hereinbefore indicated, well taken. We will first discuss the exception of the defendants below to the direction of the verdict, and then dispose of the only remaining point made in their bill of exceptions which, in the view we take of the case, it is material for us to decide. After so doing we will deal with the ■questions raised by the cross-bill of exceptions. Such additional facts as should be set forth will be stated as we progress.

1. At the trial now under review both sides still claimed title under M. T. Singleton, the plaintiff relying upon a deed from him presently to be mentioned, and the defendants upon the sheriff’s deed to which reference is made above. The plaintiff, according to the original bill of exceptions, introduced in evidence “ a deed from M. T. Singleton to M. T. Singleton, J. W. Singleton, Chas. H. Clark, and George H. Clark, incorporators of the Inland Acid Company, conveying the property in dispute, dated January 9th, 1895, and recorded February 9th, 1897.” It also introduced in evidence its •charter, granted by the superior court of Polk county, March 13th, 1895, and based its right to a recovery exclusively upon these two [294]*294documents. It did not put in evidence any conveyance to the company from the four persons named as grantees in the deed of M. T. Singleton, nor any other muniment of title. The defendants’ bill of exceptions, though not in the clearest and most specific manner possible, does, with sufficient distinctness to be understood as-to this matter, present the point that the plaintiff did not by the introduction of the Singleton deed and its charter make out a prima facie case; and we think the point is well taken. It will, of course, be conceded that the plaintiff was not entitled to recover unless it showed title in itself, and certainly this was not done by exhibiting its charter in connection with the Singleton deed. Unquestionably, it must stand or fall on that deed; and even if the above-quoted recital of its contents is to be regarded as meaning that the four grantees were in the instrument designated “ as incorporators ” of the Inland Acid Company, the instrument fell far short of passing the title to a company not in existence at the time of its execution. The company could not, as such, obtain title to property until after it came into being as a legal entity; in other words, not until it became a “person” capable in law of exercising the rights of acquisition and ownership. In principle, the decision of this court in Rau v. Union Paper Mill Co., 95 Ga. 208, is controlling upon the question in hand. On pages 212 and 213, Mr. Justice Atkinson said: “ In the second place, a corporate existence was essential to the acquirement of real estate. No title could by possibility pass to this corporation until by .organization it had attained an actual entity. As it stood, upon the moment of the grant of its charter it was a species of legal foetus — a corporate body in embryo.. Organization was essential to its endowment with the vital principle. Without this it could do no corporate act, could receive no corporate property, could incur no corporate liability, and against it no corporate judgment could be legally rendered.” The doctrine-thus announced is well supported by the following from Thompson on Corporations: It “is obviously a sound conclusion that a transfer of property from an unincorporated association to a corporation composed of the same members may be worked by a legislative enactment, accepted, sanctioned, and given effect to by the parties between whom, the transfer is made. But if the legislature, in an act of incorporation, intends that the property, of the co-adventurers who are incorporated shall be vested in the corporation without-[295]*295a deed of conveyance, it will of course say so in direct language. Thus, an act incorporating tenants in common, to enable them to carry on more conveniently a common purpose, does not of itself vest in the corporation a title to the land previously owned hy the individuals and used hy them for the same purpose. . ■ . So, the organization of a voluntary loan association, under a statute, does not transfer the property of the associates to the corporation witN out a formal conveyance, because the statute does not say so. And in general, a clause in a charter declaring that the corporators are constituted a body corporate for a specified purpose does not give them any rights of property with respect to such purpose. It only confers corporate existence, and limits the purpose for. which such existence is given. If lands are necessary for carrying the purpose into effect, they must be acquired under some other authority, grant or conveyance.” See vol. 5, § 5794, and cases cited.

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Bluebook (online)
37 S.E. 419, 112 Ga. 291, 1900 Ga. LEXIS 130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccandless-v-inland-acid-co-ga-1900.