Natural Carbon Paint Co. v. Fred Bredel Co.

193 F. 897, 114 C.C.A. 111, 1911 U.S. App. LEXIS 4799
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 3, 1911
DocketNo. 1,724
StatusPublished
Cited by5 cases

This text of 193 F. 897 (Natural Carbon Paint Co. v. Fred Bredel Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Natural Carbon Paint Co. v. Fred Bredel Co., 193 F. 897, 114 C.C.A. 111, 1911 U.S. App. LEXIS 4799 (7th Cir. 1911).

Opinion

SEAMAN, Circuit Judge

(after stating the facts as above). The appellants’ numerous assignments of error are rightly treated by counsel and submitted in both arguments as embraced under three general propositions for reversal of the decree against them which awards and forecloses a mechanic’s lien in favor of the appellee, namely: (1) For alleged failure on the part of appellee, as a foreign corporation, to comply with the statute of Illinois in reference thereto; (2) for insufficiency of the claim or statement of lien as filed to authorize recover}^; and (3) for insufficiency of the proof to establish performance of the alleged contract in suit. All facts involved under the issues raised by the bill and answers and by the cross-bills, upon which the hearing proceeded, are specifically found and determined by the trial court; and it is uncontroverted that such findings in reference to performance of the contracts in suit are supported by testimony. No tenable ground appears for disturbance of such findings of fact, and their sufficiency for support of the decree is unquestionable, unless one or the other of the two first-mentioned, contentions is upheld. These first and second propositions, therefore, present the only assignments requiring further consideration.

[899]*8991. The question discussed in the arguments whether the appellee’s contract in suit is within the meaning of the Illinois statute cited in reference to foreign corporations transacting business in the state — Act May 26, 1897 (Laws 1897, p. 174), as amended by Act April 22, 1899 (Laws 1899, p. 118) pars. 52, 53, and 54, c. 32, 4 Starr & Curtis Ann. Stat. Jones & A. Supp.—may not be free from difficulty under the authorities, were solution required. Its provisions, in so far as material, are:

Section 1 (par. 52):

“Every corporation for pecuniary profit formed in any other state, territory or country, before it shall be authorized or permitted to transact business in this state, or to continue business therein, if already established, shall designate some person as its agent or representative in this state on whom service of legal process may be had if desired: shall have and maintain a public office or place in this state for the transaction of its business, and where proper books shall be kept to enable such corporation to comply with the constitutional and statutory provisions governing such corporation; and such corporation shall be subjected to all liabilities, restrictions and duties which ai'e or may be imposed upon corporations of like character organized under the general laws of this state, and shall have no other or greater powers. * * * ”

Section 2 (par. 53):

“Every company incorporated for purposes of gain under the laws of any other state, territory or coxxntry, now or hereafter doing business within this stale, shall file in the office of the Secretary of State a copy of its charter or articles of incorporation, or iix case such company is incorporated merely by a certificate, then a copy of its certificate of incorporation. * * * Upon a compliance with the above provisions by said corporation, the Secretory of State shall give a certificate that said corporation has duly complied with the laws of this state, and is authorized to do business therein. * «

Section 3 (par. 54):

“Every foreign corporation amenable to the provisions of this act which shall neglect or fail to comply with the conditions of the same as herein provided shall be subject to a fine of not less than SI .000.00, to be recovered before any court of competent jurisdiction; and it is hereby made the duty of the Secretary of State, as lie may be advised that corporations are doing business in contravention of this act, to report the fact to the prosecuting attorney of the county in which such corporation is doing business, and the prosecuting attorney shall, as soon thereafter as is practicable, institute proceedings to recover the fine herein provided for, and Ms compensation therefor shall be 10 per cent, of the amount recovered, the remainder to be paid into the revenue fuxid of the state; in addition to wMc-li penally, on and after going into effect of this act no foreign corporation as above defined which shall fail to comply with this act, can maintain any suit or action, either legal or equitable, in any of the courts of this state upon any demand, whether arising out of contract or tort.”

[1] We understand the general rule to be settled in the interpretation of like statutory provisions that the inhibition is to be construed as applicable alone to the carrying on of a permanent business in the state, and not to the making and performance of a single contract for a customer, without general engagement in business within the state. Cooper Manufacturing Co. v. Ferguson, 113 U. S. 727, 732, 734, 5 Sup. Ct. 739, 28 L. Ed. 1137; Oakland Sugar Mill Co. v. Fred W. Wolf Co., 118 Fed. 239, 243, 55 C. C. A. 93; Ammons v. Brunswick[900]*900Balke-Collender Co., 141 Fed. 570, 573, 72 C. C. A. 614. The appellants contend, however, that the present statute is otherwise construed by the Supreme Court of the state in United Lead Co. v. Elevator Manf. Co., 222 Ill. 199, 201, 78 N. E. 567, and that such decision is conclusive, both of the applicability of the statute to the transaction in suit and of invalidity of the contract thereunder. The decision referred to arose under a statement of facts certified from the Appellate Court, which shows the plaintiff to- be “a New Jersey coi'poration, doing business in” Illinois without compliance with the statute, and objection to the suit was set up by plea, so that the above-mentioned doctrine does not appear to have been involved for decision, nor is it mentioned in the opinion; and no rule or decision under the statute is brought to our attention which makes it applicable to the contract in suit.

[2] Whatever may be the import of this statute, however, we believe no issue was raised by the pleadings under which the trial proceeded for impeachment of the contract in suit. In the answers of all defendants, respectively, except the appellant mortgagee, and in their cross-bills as well, the contract is expressly averred as entered into between the parties thereto, in Wisconsin, as alleged in the bill, and the validity of the contract and of the alleged transactions in performance thereof stands admitted thereunder. The answer of the mortgagee American Trust & Savings Bank “leaves the complainant to its proof thereof,” stating that it “neither admits nor denies” that the contract was entered into as alleged.

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193 F. 897, 114 C.C.A. 111, 1911 U.S. App. LEXIS 4799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/natural-carbon-paint-co-v-fred-bredel-co-ca7-1911.