Mobile & Kansas City Railroad v. Owen

121 Ala. 505
CourtSupreme Court of Alabama
DecidedNovember 15, 1898
StatusPublished
Cited by7 cases

This text of 121 Ala. 505 (Mobile & Kansas City Railroad v. Owen) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mobile & Kansas City Railroad v. Owen, 121 Ala. 505 (Ala. 1898).

Opinion

TYSON, J.

— It appears from a recital in the record that the plaintiff Avhen the cause Avas announced ready for trial, stated that he did not claim any recovery upon [508]*508a quantum meruit, and that the common counts in the complaint were retained and relied upon only so far as they entitled him to recover upon an executed special contract.

There were six counts in the complaint and all of them were common counts except one, which was designated as No. 6. This declared upon a special contract in substance as follows: That on, to-wit, the 1st day of August, 1888, the defendant elected, employed and hired one Richard B. Owen, plaintiff’s assignor, as secretary of defendant company ('who is sued as a corporation), to perform the duties of said office of secretary from the said first day of August, 1888, until his successor in said office should be duly elected and qualified, at the stipulated salary of fifty dollars per month. That by virtue of said election, plaintiff’s assignor entered upon the discharge of the duties of his office and was subsequently re-elected. That under these elections as secretary he remained continuously in said office, faithfully discharging the duties thereof from the date of his first election to December 1, 1894, land that defendant has failed to pay the compensation for the services performed by plaintiff’s assignor as secretary during the months from April, 1890, to November, 1894, both inclusive.

There were a number of pleas filed by the defendant, to which demurrers Avere sustained, but it is unnecessary to determine the correctness of the rulings of the court with respect to any of them except the special plea filed June 1, 1897, as the sustaining of the demurrer to this plea is the only error assigned.

The theory upon Avhich this plea was constructed, proceeds upon the hypothesis that AArhen the plaintiff’s assignor accepted the office of secretary of the defendant company and entered upon the discharge of his duties as such, that debarred him from accepting and discharging the duties of secretary of another company without the consent of the defendant. In effect the plea asserts, that by doing so the defendant was absolved from all liability, notwithstanding it alleges facts Avhich show that he continued to serve the defendant corporation as its secretary, and, for aught that appears, it accepted his services with full knowledge of his official relations to [509]*509tbe other company; and, notwithstanding, there was no term in his contract by which he bound himself not to accept the ofiice of secretary of another company.

We know of no rule of law or public policy Avhich inhibited him from filling both offices at the same time, so long as the duties required of him as secretary of the other company were not inconsistent with his employment by the defendant or involved the doing of no act prejudicial to its interest. All that defendant had a right to demand of him as its officer was a faithful discharge of his duties as such. And so long as he remained in ofiice and exercised its functions with fidelity and capacity he was entitled to the compensation or salary agreed to be paid him. Even in the case where the master under his contract is entitled to the entire time of his servant, the master could not defeat an action by the servant for wages earned, upon the ground that he had performed services for another during the term of his employment, but might, in a proper case, recoup or set-off, by appropriate plea, the money earned by the servant to which the master would be entitled. — -Wood on Master and Servant, p. 202. There was no error in sustaining the demurrer to the plea.

The case was tried upon the pleas of the general issue, payment, and the statute of limitations of three years, the latter alleging the cause of action to be an open account. There are many assignments of error based upon objections to testimony by defendant and the exclusion of testimony offered by it. Many of these can be disposed of without discussing them at length; by merely stating the rules of law by Avhich the liability of the defendant to the plaintiff are to be determined.

Thompson, in his 'work on the Law of Corporations, section 4692, says: “The secretary of an incorporated company is an officer of the company * * * and not merely an officer of the managers or directors by whom he is employed;” and in section 4704 he says: “Such officers as that of secretary, treasurer and general managing agent are merely ministerial offices. Their incumbents do not stand on the same footing as directors, nor even as the president, in respect to their compensation. It is.not a rule, as in the case of a director, that the law does not imply a promise to pay for such ser[510]*510vices. * * * So where a salary has been attached to such an office, the presumption is that it continues so long as any duties remain to be performed by the officer, notwithstanding a change so radical as that of a consolidation with another company.”

Wood on Master and Servant, p. 190, says: “Where a person has been employed by another for certain definite term at fixed wages, if the services are continued after the expiration of the term in the same business it is-presumed that the continued services are rendered upon the same terms;” and in section 97 he says: “A person employing another for a definite term is bound to provide him with labor for the whole term and cannot deduct from the wages of the servant for the time he was not at work when the failure results from his own fault.”

The evidence offered by plaintiff showed that the bylaws of the defendant created the office of secretary, and that plaintiff’s assignor performed all the services required of him as secretary of the defendant company for the entire period covered by the claim sued upon. He was first elected to the office of secretary by the board of directors on December 21, 1889, and re-elected to such office on December 30, 1890. The term of his office as fixed by the by-laws of the defendant corporation was for one year, and until his successor was elected and qualified, unless previously removed. The board of directors under the by-laws was invested with the power of the election of persons to fill this office, and to fix the salary to be paid by defendant to this officer. No minute entry appears upon the record kept of the acts and doings of the board of directors fixing the amount of the salary to be paid plaintiff’s assignor as secretary of defendant company. It does appear, however, that $50 per month was agreed upon at the time he accepted the office in August, 1888, between the president of the defendant company and plaintiff’s assignor as the salary to be paid him by defendant; and that defendant paid him this stipulated sum from August 15th, 1888, to April, 1890 ; and that in his annual report, made as secretary, of the expenditures of the company, to the stockholders, on December 18, 1889, the item paid him as salary from August 15,1888, to December, 1889, was included in said [511]*511report and approved by the stockholders. He was never removed from office or notified that his salary would he discontinued by any one authorized to do so. The only evidence introduced by defendant which in the least tended to contradict or break the force of the evidence offered by plaintiff, was the testimony of one Merrill, who testified to a conversation with plaintiff’s assignor in November or December, 1894, when he called upon him for the minute book of defendant corporation.

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Bluebook (online)
121 Ala. 505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mobile-kansas-city-railroad-v-owen-ala-1898.