Philadelphia, Wilmington, & Baltimore Railroad v. Quigley

62 U.S. 202, 16 L. Ed. 73, 21 How. 202, 1858 U.S. LEXIS 634
CourtSupreme Court of the United States
DecidedJanuary 17, 1859
StatusPublished
Cited by181 cases

This text of 62 U.S. 202 (Philadelphia, Wilmington, & Baltimore Railroad v. Quigley) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Philadelphia, Wilmington, & Baltimore Railroad v. Quigley, 62 U.S. 202, 16 L. Ed. 73, 21 How. 202, 1858 U.S. LEXIS 634 (1859).

Opinion

Mr. Justice CAMPBELL

delivered the opinion of the court.

The plaintiff, (Quigley,) a citizen of Delaware, complained of the defendants, “ a body corporate in the State of Maryland, by a law of the; General Assembly of Maryland,”' for'the publication of a libel by them, in which his capacity and skill. *208 as. a mechanic and builder of depots, bridges, station-houses, and other structures for railroad companies, had been falsely and maliciously disparaged and undervalued. The defendants pleaded the general issue. On the trial of the cause, it appeared that in 1854, the president and directors, then in charge of the affairs of the defendants, instituted an inquiry into the administration and management of a person who had been the superintendent of their railroad for ten years. Among other subjects, the nature of his connection and dealings with the plaintiff, who had likewise been in the service of the corporation as “ general foreman of all their carpenters,” engaged the attention of the committee- oT investigation. • The president of the company, who conducted the inquiry before this committee on behalf of the corporation,.-seems to have been convinced that-, the superintendent had exhibited partiality for the plaintiff, and had allowed-,him extravagant compensation for service, and the privilege of free transit over the road for himself, his workmen, and freight,-to' the detriment of the company, and. in breach of his duty as superintendent. The superintendent defended himself against these and other impu i tatións, and produced testimony -to the skill and fidelity of the plaintiff while in the service of the company; also, to the value of his services, and to..the effect that.no unusual or improper favor had been extended to him.

The president of the company,,in the course of the investí-' gation, addressed' a letter to an architect, who had some -acquaintance with the, plaintiff, to request his "opinion of his skill as a mechanic, and' whether the sendees of the plaintiff could have had any peculiar value to' a-railroad company. The reply of this architect was very.pointed and depreciative of the plaintiff,‘affirming that- “he.was not entitled to rank as a third-rate workman,” and “was unable to make -the simplest geometrical calculations.” All the testimony collected by the committee, as produced by the superintendent, was carefully reduced to writing, and printed; first, for the use. of the president and directors, and afterwards was submitted to the company at their meeting on the-8th of January; 1855, .with a report, which exonerated in.á great' measure the superintendent *209 from any mal-practice in consequence of his relations with the. plaintiff. The investigation was searching, and testimony, which, with the report of the committee, fills two printed volumes, was submitted to the company. The letter of the architect, in answer to the letter of the president, is printed- in one of these volumes, and this publication is the- libel complained of. Several of the directors testify they were not aware of the' publication, and evidence was adduced that the plaintiff had declared that the investigation had resulted in increasing, his business’. A verdict was returned in favor of the plaintiff. The defendants are a company incorporated by the Legislatures of Delaware and Pennsylvania, as well as of Maryland, to construct a railroad to connect the three cities which contribute to form its name, and a portion of their directors and stockholders are citizens of Delaware.

The defendants contend that they are not liable to be sued in this action; that theirs.is a railroad corporation, with defined and limited faculties and powers, and having only such incidental authority as is necessary to- the full exercise of the faculties and powers granted by their charter; that, being as mere legal entity,' they are ineapable of malice, and that malice is a necessary ingredient in a libel; that this action should have been instituted against the natural persons who were concerned in the publication of the libel. To support this argument, we should be required to concede that a corporate body could only act within the limits and. according to the faculties determined by the act of incorporation, and therefore that no crime or offence can be imputed to it. That although illegal acts might be committed for the benefit or within the service of the corporation, and to accomplish'objects for which it was created by the direction of their dominant body, that such acts, not being contemplated by the charter, must be re-, férred to the rational and sensible agents who performed them, and the whole responsibility must be limited to those agents, and we should be forced, ás a legitimate' consequence, to conclude that no action ex delicto or indictment will lie against a corporation for any misfeasance. But this conclusion would be entirely inconsistent with the legislation and jurisprudence' *210 of- the States of the Union relative to these artificial persons, Legislation has. encouraged their organization, as they concentrate and employ the intelligence, energy, and capital of society, for the development of enterprises of public utility. There is scarcely an object of general interest for which some association. has not been formed, and there are institutions whose members are found in every part.of the Union, who contribute their efforts to the common object. To enable impersonal .beings — mere legal entities, which exist only in contemplation of law — to perform corporal acts, or deal with, personal agents, the principle of representation has been adopted as a part of their constitution. The powers x>f the corporation aré placed in the hands of a governing body selected by the members, who manage its affairs, and who appoint the agents that exercise its faculties for the accomplishment of the object of its being. But these, agents may infringe the rights.'of persons who are unconnected with the corporation, or who are brought into relations of business or intercourse with it. As a necessary correlative to the principle of the exercise of corporate powers and faculties by legal representatives, is the recognition of a corporate responsibility for the acts of those representatives.

With much wariness, and after close and exact scrutiny into the nature of their constitution, have the judicial tribunals determined the legal relations which are established for the corporation by their governing body, and their agents, with the natural persons with whom they are brought into contact or collision. The result of the cases is, that for acts done by the agents of a corporation, either in contractu or in delicto, in the course of its business, and of their employment, the corporation is responsible, as an individual is responsible under similar circumstances. At a very early period, it was decided in Great Britain, as well as in the United States, that .actions might be maintained against corporations for torts; and instances may be found, in the judicial annals of both countries, of suits for torts-arising from the acts of their agents, of nearly every variety. Trespass guare clausum fregit was supported in 9 Serg. and R., 94; 4 Mann. and G., 452; Assault and Battery, 4 Gray Mass. R., 465; 6 Ex. Ch., 314. For damages by a col *211

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Bluebook (online)
62 U.S. 202, 16 L. Ed. 73, 21 How. 202, 1858 U.S. LEXIS 634, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philadelphia-wilmington-baltimore-railroad-v-quigley-scotus-1859.