Perry v. Simpson Waterproof Manufacturing Co.

37 Conn. 520
CourtSupreme Court of Connecticut
DecidedFebruary 15, 1871
StatusPublished
Cited by29 cases

This text of 37 Conn. 520 (Perry v. Simpson Waterproof Manufacturing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perry v. Simpson Waterproof Manufacturing Co., 37 Conn. 520 (Colo. 1871).

Opinion

Carpenter, J.

Each party filed a motion for a new trial in this case-; the defendants, on the ground that the court erred in ruling that they were liable for the services of the plaintiff rendered for the Bridgeport Rubber Company; and the plaintiff, on the ground that the court erred in ruling that the contract annexed to the finding of the court was not admissible in evidence.

We will first consider the question presented by the defendants’ motion. We are all agreed that under the circumstances detailed in the finding of facts, the ruling of the court below, that the plaintiff was entitled to recover for services actually performed, although for another corporation, was correct. It is not denied .that whatever contract there was in relation to such services, whether express or implied, was made with the defendants. He went into their employment September 1st, 1865, and so continued, as he supposed and believed, until February 1st, 1866, when he was discharged. .The defendants sold out their business to the Bridgeport Rubber Company about the first of October, 1865; but it was done in such a manner, and the change of business was so made, and the business subsequently so conducted, as to leave the plaiiitiff entirely ignorant of the change. The defendants failed to notify him that they were no longer carrying on the business. It was clearly their duty to have given such notice if they would relieve themselves of their liability to him. Although the contract signed by him contemplated the possibility, and probability even, that such a change would, be made, yet there was no certainty of it, and there is nothing in the contract or in the circumstances of the case to show that the plaintiff was to take notice of the transfer at his peril, or which placed him under obligation to make inquiry. [534]*534Of course there was no laches in the plaintiff in remaining ignorant of the transfer. On the other hand, the defendants knew of the transfer as soon as made, and could, without inconvenience, have given the plaintiff notice. Until such notice they remained liable for his services. It is true the Rubber Company were liable upon an implied promise, if the plaintiff had elected to pursue his remedy against them; but that in no way affects the defendants’ liability. But it is unnecessary to pursue this branch of the case further, as the views of a majority of the court upon the questions presented by the plaintiff’s motion, if sound, show conclusively that the defendants are not entitled to a new trial.

That brings us to consider the question whether the court-below did right in excluding the contract as evidence in the cause, on the ground that it could not be regarded as the con-, tract of the corporation.

We think it is quite clear that the president of a corporation, merely as president, has no power to bind the corporation by any act of his aside from his official duties. It is equally clear that the president, like any other person, may be constituted an agent for the transaction of its business. His authority so to act may be found in the charter or. by-larvs, in a direct vote of the corporation or board of directors, or in usage acquiesced in by the corporation. A corporation will also'be bound by the unauthorized acts of its president if it subsequently ratifies those acts, or so conducts itself with reference to them as that it ought to be estopped from denying his • authority; and generally, the doctrine of estoppel will apply whenever the corporation receives and retains the benefit of the contract.

Now the consideration of this contract, moving from the plaintiff, is two-fold; — 1st, the inconvenience or injury to him in consequence of giving up a lucrative situation ; and 2d, services .to be .rendered by him for the defendants. Those services were chiefly important to the defendants on account of the peculiar situation of their works, then standing idle for the want of a competent foreman, and the skill and experience of the plaintiff in the business in which he was to be [535]*535engaged. At the request of the president and secretary of the corporation, the plaintiff relinquished his previous situation, to his own injury, thereby performing fully his part of the contract in that respect, and the defendants received the full benefit of it. The plaintiff entered the service of the defendants, and performed faithfully all the duties required of him, until he was, without cause, and against his will, disclxai^-ed by the defendants or their assigns. The services rendered prior to the transfer to the Rubber Company were rendered for the defendants; those subsequently rendered were, as between these parties, and in contemplation of law, also rendered for their benefit. As the plaintiff was ready and willing to fulfil his contract, we may say truthfully, in a legal sense, that the defondants.had the benefit of it; at least the-benefit of services actually rendered, and certainly it was no fault of the plaintiff that they did not receive the benefit of his services for the full period of two years. In estimating the value of those services to the defendants, it must be borne in mind that that value consisted, not merely of so much time devoted to their service, and of- the employment for their benefit of his skill and experience, but it was largely enhanced by the peculiar circumstances of the defendants. Their mill had stood idle for two months at least, for the want of a suitable man to act as foreman in operating it. They contemplated a sale of their entire property to a corporation to be organized under the laws of this state. In order to effect an advantageous sale, it would seem important that the mill should be put in operation. For that purpose, and until a sale, the defendants needed a foreman. After a sale they did* not need one. For so short a time a competent man could not easily be obtained. Probably none could be had for less than two years ; otherwise they would hardly have employed one for so long a time, especially as they contemplated a sale so soon. In one month after the mill started the contemplated sale took place, and four months afterwards the plaintiff was discharged. It is therefore reasonable to infer that the principal object had in view by the president and secretary of the corporation was to place the property of [536]*536the defendants in a position to be advantageously sold. No other reasonable construction can be put upon the finding. If a sale could as well have been effected without resuming operations at the mill, why was it not done ? What necessity for contracting with the plaintiff for a term of years extending beyond the contemplated existence of the corporation itself ? But whether we are right in this inference or not is not very material, for it is certain that the corporation chose to use the time, skill and experience of the plaintiff, after subjecting him to the inconvenience referred to, precisely in that way. They deemed it for their interest to do so, and the effect upon the plaintiff was the same whether they originally intended it or not. The corporation therefore received substantially the full benefit of the contract.

In view of these tacts, is. it consistent with honesty and fair dealing for the defendants, through the instrumentality of this contract, to accomplish their object, and then repudiate the contract and turn the plaintiff out of employment ? Who can believe that the plaintiff, could he have foreseen what was to be, would have entered into this contract ? If not binding, does it not operate as a fraud upon him ? And can this court lend its sanction to a fraud so gross and palpable ?

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Bluebook (online)
37 Conn. 520, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perry-v-simpson-waterproof-manufacturing-co-conn-1871.