Perkosky v. Keystone Facing Mills Co.

5 Pa. D. & C. 613, 1924 Pa. Dist. & Cnty. Dec. LEXIS 196
CourtPennsylvania Court of Common Pleas, Westmoreland County
DecidedMay 10, 1924
DocketNo. 88
StatusPublished

This text of 5 Pa. D. & C. 613 (Perkosky v. Keystone Facing Mills Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Westmoreland County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perkosky v. Keystone Facing Mills Co., 5 Pa. D. & C. 613, 1924 Pa. Dist. & Cnty. Dec. LEXIS 196 (Pa. Super. Ct. 1924).

Opinion

Whitten, J.,

The board of directors of the defendant company was composed of five members. Moreman was president, Beach was secretary and Pekich was vice-president. These three directors, with the knowledge of, and without objection from, the other members, transacted the business of the company.

There was ample proof — though denied to some extent by defendant’s witnesses — that the president, secretary and vice-president, assuming to represent the defendant, employed the plaintiff as its sales agent, the plaintiff to receive a commission of 20 per cent, on all sales made by him of the product of defendant’s factory; and that all of the members of said board of directors had knowledge of such employment and acquiesced therein; that after the plaintiff, relying on the faith of his contract with the defendant, had procured many orders for the sale of the defendant’s product, and had expended considerable time and money in so doing, the defendant notified plaintiff to cancel all such orders; that the plaintiff, being thus deprived of the commissions thus earned as defendant’s sales agent, immediately made demand in writing of the defendant for the payment of certain expenses, aggregating $465, alleged to have been incurred by plaintiff while acting as defendant’s sales [614]*614agent; and that after the receipt by the defendant of such written demand, Moreman, president, Beach, the secretary, and Pekich, vice-president thereof, assuming to represent the defendant, agreed to pay the plaintiff said bill of expenses.

The jury found a verdict in favor of the plaintiff for $355 of the $465 claimed by the terms of the alleged settlement.

The sufficiency of the proof as to the authority of Moreman, president, and Pekich, vice-president, to negotiate the alleged settlement with the plaintiff is practically the only question of law involved.

It was not shown that there was any formal action by the board of directors authorizing the president, secretary, vice-president or any other person to transact the business of the company, but it was shown that the business of the company had been conducted by the president, secretary and vice-president, and that the other directors acquiesced therein. Nor does it appear that the company ever adopted any by-laws.

The proofs show that the president, secretary and vice-president made the original contract employing the plaintiff as defendant’s sales agent, and caused stationery to be printed, designating plaintiff’s office in Pittsburgh as the sales office of the defendant company; that this fact was known to the members of the board of directors; and that the defendant accepted the benefit of contracts made by plaintiff by filling orders secured by him pursuant to his employment as such sales agent. (Testimony, page 27.) “Aside from the position as presiding officer of the board of directors and of the stockholders when convened in general meeting, the president of a corporation has, by virtue of his office merely, no greater power than that of a director. Whatever authority he has must be expressly conferred by statute, charter, by-laws or the board of directors, or be implied from express power granted, usage or custom or the nature of the company’s business. He may be, and frequently is, made the chief executive officer of the company and invested with broad, general powers of management and superintendence:” 14-a Corpus Juris, 94.

“The office of general manager is of broader import than that of president. The fact that a person having an active conduct of the business of a corporation is also its president does not operate as a limitation upon the powers usually exercised by its general agents or managers. This authority is not limited to that possessed by virtue of his office as president, but is incidental to the management of its business:” 14-a Corpus Juris, 95.

“If a president of a company be in the habit of acting as its business agent, with its knowledge and without objection, making sales, settling accounts and collecting debts, actual authority may be inferred from such acts and the company would be bound by them:” Dougherty v. Hunter, 54 Pa. 380.

“Where a person has been in the habit of acting as the business agent of a corporation, with its knowledge and without objection, actual authority may be inferred from his acts and the company will be bound by them:” Culver v. Pocono Spring W. I. Co., 206 Pa. 481.

Even where the by-laws of a corporation limit the authority of the president, yet if the entire management and control of a corporation has been allowed to pass into the hands of such officer, who executed notes in its name, it may be estopped from denying liability thereon, and a verdict for the amount of the notes based upon evidence to show these facts would be upheld: Hartzell v. Ebbvale Mining Co., 239 Pa. 602.

On the other hand, the president of a business corporation has no authority, as such, to bind the corporation in relation to the general conduct of its business affairs: Bangor Ry. Co. v. American Bangor Slate Co., 203 Pa. 6.

[615]*615In the instant case, the clear weight of the evidence shows that upon the cancellation of the orders which the plaintiff had procured, relying upon the faith of his employment as defendant’s sales agent, the plaintiff had a just claim against the defendant for some compensation by reason of the defendant’s cancellation of such orders. Under the circumstances, did the defendant’s president, vice-president and secretary have actual, implied or apparent authority to settle and adjust the plaintiff’s claim?

Undoubtedly, the jury was warranted in finding that the directors of the defendant company acquiesced in the employment by defendant’s president, secretary and vice-president of the plaintiff as its sales agent, and accepted benefits therefrom.

If plaintiff’s employment as defendant’s sales agent had not been canceled by the defendant, and if the defendant had filled all of the orders secured by the plaintiff, the defendant would not be permitted to repudiate plaintiff’s claim for commissions.

In other words, the proofs warranted a finding by the jury that the president, secretary and vice-president were the defendant’s agents for the purpose of employing agents to sell its product.

The defendant offered no proof that the alleged settlement of plaintiff’s claim, in lieu of commission, was improvident or excessive in amount, or that the amount of such settlement was in excess of the commissions which plaintiff could have recovered if no settlement had been made.

If no settlement had been made, and if the plaintiff had brought suit — in affirmation of his employment as defendant’s sales agent — for his commissions upon the orders procured for the defendant’s product, the evidence produced in this case touching his right to recover such commissions would have carried the case to the jury.

Therefore, the only issue is whether, in the circumstances, the president, vice-president and secretary had authority to negotiate the alleged settlement with the plaintiff. This question was submitted to the jury in a charge to which defendant made no complaint, except that a point for binding instructions to find a verdict for the defendant was refused.

The jury must have found that the alleged settlement between the plaintiff and the defendant, to the extent of $355, was duly made and authorized by the defendant.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Thompson, Exrx. v. Barrow
81 Pa. Super. 216 (Superior Court of Pennsylvania, 1922)
Dougherty v. Hunter
54 Pa. 380 (Supreme Court of Pennsylvania, 1867)
Adams Express Co. v. Schlessinger
75 Pa. 246 (Supreme Court of Pennsylvania, 1874)
Brooke v. New York, Lake Erie, & Western R. R.
1 A. 206 (Supreme Court of Pennsylvania, 1885)
Anderson v. National Surety Co.
46 A. 306 (Supreme Court of Pennsylvania, 1900)
Bangor & Portland Railway Co. v. American Bangor Slate Co.
52 A. 40 (Supreme Court of Pennsylvania, 1902)
Culver v. Pocono Spring Water Ice Co.
56 A. 29 (Supreme Court of Pennsylvania, 1903)
Singer Manufacturing Co. v. Christian
60 A. 1087 (Supreme Court of Pennsylvania, 1905)
Dalmas v. Kemble
64 A. 559 (Supreme Court of Pennsylvania, 1906)
American Car & Foundry Co. v. Alexandria Water Co.
67 A. 861 (Supreme Court of Pennsylvania, 1907)
Girard v. Case Bros. Cutlery Co.
74 A. 201 (Supreme Court of Pennsylvania, 1909)
Duffy v. York Haven Water & Power Co.
81 A. 908 (Supreme Court of Pennsylvania, 1911)
Hartzell v. Ebbvale Mining Co.
86 A. 1093 (Supreme Court of Pennsylvania, 1913)
Beltz v. Garrison
98 A. 956 (Supreme Court of Pennsylvania, 1916)
Smith v. Standard Steel Car Co.
106 A. 102 (Supreme Court of Pennsylvania, 1919)
Faiola v. Calderone
119 A. 539 (Supreme Court of Pennsylvania, 1923)

Cite This Page — Counsel Stack

Bluebook (online)
5 Pa. D. & C. 613, 1924 Pa. Dist. & Cnty. Dec. LEXIS 196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perkosky-v-keystone-facing-mills-co-pactcomplwestmo-1924.