National Oil Works, Inc. v. Korn Bros.

6 La. App. 75, 1927 La. App. LEXIS 350
CourtLouisiana Court of Appeal
DecidedMarch 28, 1927
DocketNo. 9635
StatusPublished

This text of 6 La. App. 75 (National Oil Works, Inc. v. Korn Bros.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Oil Works, Inc. v. Korn Bros., 6 La. App. 75, 1927 La. App. LEXIS 350 (La. Ct. App. 1927).

Opinion

JONES, J.

This is a suit for one hundred twenty-five ($125.00) dollars damages for breach of plumbing contract alleged to have been made by plaintiff with defendants on July 26, 1922.

Defendants answer denying that there ever was a contract and averring that they had made every effort to have purported contract duly and properly signed by plaintiff, but their requests had been refused and they had, therefore, declined to hav.e further transaction.

The pleadings are as follows:

The petition was filed on March 2, 1923, in the name of “National Oil Works, a corporation created and existing under and by virtue of the laws qf the State of Mississippi and authorized to do business in the City of New Orleans.” The affidavit to the petition is sworn to by Peter A. Cooney, as the president of National Oil Works, Inc. The suit is entitled National Oil Works, Inc., and the alleged contract, which is attached to the petition, is made in the name of National Oil Works, Inc., and is signed by that name and also by defendants.

The citations were issued in the name of National Oil Works, Inc., and the defendants, on March 19,' filed exceptions of vagueness, calling the plaintiff, National Oil Works, Inc. These exceptions of vagueness were maintained by. the judge on April 3, 1923, with leave to amend and on April 30th of the same month, plaintiff filed a supplemental petition in the same name attaching thereto plans and specifications.

On May 29, 1923, defendants filed an answer denying that either National Oil Works or National Oil Works, Inc., was a Mississippi corporation with authority to do business in New Orleans.' They further [76]*76denied that the copy of the contract attached to plaintiff’s petition was identical with that which had been given to them. They admitted that unsigned contracts in duplicate already written out in the name of National Oil Works, Inc., had been tendered to'theni by plaintiff’s architect; that they had signed these documents and left them at the office Of the architect for the signature of plaintiff and that later they had received their copy simply signed National Oil Works. They further averred that upon receipt of this document that they called upon the architect for information as to the status of the National Oil Works and that they were told that Peter A. Cooney was the president of National Oil Works, Inc.; that they made several efforts to see the said Peter A. Cooney, but were finally told by the architect that Mr. Cooney did not wish to see them and they thereupon notified said architect that they -had no contract and would do nothing further in the matter.

On June 27, 1923, plaintiff filed a second supplemental petition saying that in the original petition, petitioner had alleged its name to be National Oil Works, Inc., but petitioner now says that National Oil Works & Mill Supplies Co., Ltd., is a corporation duly organized and existing under the laws of Mississippi and that said incorporation was certified to by the clerk of the Chancery Court of Harrison County on August 31, 1918; that after said date the board of directors of said corporation changed its name to National Oil Works, Inc.; that petitioner is now informed that while its action is legal the name of the corporation cannot be changed until the resolution of the board authorizing 'the change has been recorded with the clerk of the Chancery Court and duly published; that being uncertain as to the validity of the action qf said board, petitioner desires to substitute the name National Oil Works & Mill Supplies Co., Ltd., instead of National Oil Works, Inc.

Petitioner further alleges that National Oil Works & Mill Supplies Co., Ltd., and National Oil Works, Inc., plaintiff, are one and the same corporation and the identical legal entity created under the laws of Mississippi and authorized to do business in the State of Louisiana.

Petitioner prayed that it be allowed to file the supplemental petition and that National Oil Works & Mill Supplies Co., Ltd., be designated as the name of iplaintiff and that there be judgment in its favor. The judge signed the order allowing the filing of the amended petition.

On July 9th defendant filed exceptions to this second supplemental petition as follows:

(1) Want of legal citation, because the citation gives the name of plaintiff as National Oil Works and there .is no such plaintiff.
(2) That said supplemental petition is too vague and indefinite for defendants to answer in that it sets out a change in party plaintiff without legal ground and causes a multiplicity of parties plaintiff after issue had been joined.
(3) That said supplemental petition shows no cause or right of action.

These exceptions were overruled on February 5, 1924, and on February 16th of the same month defendants filed an answer denying on information and belief the averments of the second supplemental petition.

The case was tried in the lower court on April 24, 1924, and judgment was rendered n favor of plaintiff and suspensive appeal was taken to this court.

The sole question before us is the validity of the contract.

[77]*77On the trial of the case plaintiff introduced a certified copy of a charter passed before a notary public in this city, on February 14, 1923, wherein a new corporation was formed called National Oil Works of Louisiana, Inc.

Article three of this charter shows that this corporation was particulárly and expressly organized for the purpose of taking over the business, property, assets, stock, good will, etc., of National O'il Works, Inc., a corporation organized under the -laws of the State of Mississippi, first under the name of National Oil Works & Mill Supplies Company, Ltd., and which charter has been subsequently amended.

Plaintiff also introduced in evidence a certified copy, signed by Secretary of State, of a certificate of incorporation of National Oil Works & Mill Supplies Company, Ltd., organized under the laws of the State of Mississippi, dated September 19, 1918, authorizing the said corporation to do business in the State of Louisiana, and also a certificate from the same official saying that Peter A. Cooney, of New Orleans, had been designated as the agent of said corporation for service of papers, etc.

Defendants introduced into evidence their copy of the contract which was signed National Oil Works.

On the trial of the case Mr. Cooney testified that National Oil Works, Inc., had been doing business in Louisiana for twenty years and that it had purchased property in that name.

In his brief and argument in this court, plaintiff contends that defendants are estopped to deny the existence of the corporation and quotes in support of this argument a paragraph from the case of Latiolais vs. Citizens’ Bank of Louisiana, 33 La. Ann. 1449, reading as follows:

"It is settled, by an overwhelming array of indisputable precedents, that, as a rule, one who contracts with what he acknowledges tó be and treats as a corporation, incurring obligations in its favor, is estopped from denying its corporate existence, particularly when the obligations are. sought to be enforced. It is right that it should be so.

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Related

Louisiana Nat. Bank v. Henderson
40 So. 779 (Supreme Court of Louisiana, 1906)
Latiolais v. Citizens' Bank
33 La. Ann. 1444 (Supreme Court of Louisiana, 1881)
Williams v. Hewitt
17 So. 496 (Supreme Court of Louisiana, 1895)
A. Lehman & Co. v. Knapp
20 So. 674 (Supreme Court of Louisiana, 1896)

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Bluebook (online)
6 La. App. 75, 1927 La. App. LEXIS 350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-oil-works-inc-v-korn-bros-lactapp-1927.