Rialto Co. v. Miner

166 S.W. 629, 183 Mo. App. 119, 1914 Mo. App. LEXIS 461
CourtMissouri Court of Appeals
DecidedApril 7, 1914
StatusPublished
Cited by4 cases

This text of 166 S.W. 629 (Rialto Co. v. Miner) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rialto Co. v. Miner, 166 S.W. 629, 183 Mo. App. 119, 1914 Mo. App. LEXIS 461 (Mo. Ct. App. 1914).

Opinion

BEYNOLDS, P. J.

This is an action by plaintiff, alleged to be a corporation duly organized and existing under the laws of the State of Illinois, to recover five months’ rent claimed to be due under and by virtue of a lease executed by plaintiff as lessor, to the defendant, lessee, the lease covering certain rooms in a building-owned by plaintiff in the city of Chicago, the lease dated March 9,1908, annual rental $2610, $217.50 payable monthly in advance on the first day of each month. Alleging that the defendant lessee had paid the rent under the lease until November 1, 1909, but had made default- in payments for the remaining five months of the term, judgment is demanded for the amount.

The answer, for a first defense, denies that plaintiff is a corporation duly organized and existing under the laws of the State of Illinois, and denies that it is a corporation at all, alleging that the statutes of Illinois prohibit a corporation from acquiring and holding real estate, and that it is contrary to the laws and public policy of that State to permit a corporation to be organized for the purpose of leasing specified real estate for a long term of years upon which to erect buildings for tenants, and that a corporation attempted to be organized for such purposes has no valid, legal existence; that the. promoters of the plaintiff corporation, seeking to evade the law and the public policy of the State of Illinois, organized the plaintiff company for the avowed purpose of securing or erecting a building to contain [124]*124suitable and proper vaults and safes for the storage and protection of property and to do all things incident to the management of the building; that the avowed object of the plaintiff company was not to conduct a safety deposit vault business and that the company or alleged corporation did not at any time, and never has at any time, attempted in good faith to exercise any corporate functions properly belonging to deposit or safety vault companies, or any other functions not prohibited by the laws of the State of Illinois; that plaintiff is neither a corporation de ju^re nor defacto and has not the power to sue in this or any other court, and that by reason of the facts above stated the lease set up was and is null and void and directly contravenes and is in violation of the statutes of the State of Illinois and against the public policy of that State. “Defendant for his further answer herein says that he leased the premises herein referred to for the purpose of operating and conducting a brokerage and commission business,” in Chicago; that about the beginning of the lease he moved into the offices or rooms in the building, furnished them with certain articles, enumerating them, of which article defendant avers he was lawfully possessed as of his own property and which were of the value of $1500; that on or about May 25, 1908, defendant quit his brokerage and commission business in the offices, closed the offices, turned the keys over to plaintiff and left the furniture and fixtures in the premises ; that when defendant surrendered the keys of the offices to plaintiff it was agreed between plaintiff and defendant that the furniture and fixtures were to remain in the premises and be in the care and custody of plaintiff during the remainder of the term of the lease and that plaintiff would not permit or cause the property to be removed or molested during the term of the lease without the written consent of defendant, but, disregarding its duties plaintiff suffered and permitted the furniture ' and fixtures to be removed from the offices and from its [125]*125care and custody during the term of the lease without the knowledge or written consent of defendant and wholly without his authority, and that the property thereby passed from the control of and was lost to defendant, to his damage in the sum of $1500, for which sum he demands judgment against plaintiff. This answer was duly verified by defendant, and a general denial, by way of reply, filed by plaintiff.

The cause came on for trial before the court and a jury and under the direction of the court the jury returned a verdict for plaintiff for the amount of the rental and interest and against defendant on his counterclaim, and judgment was entered accordingly. Interposing a motion for new trial and excepting to that being overruled, defendant has duly perfected his appeal to this court.

The errors assigned are to the action of the court in peremptorily instructing the jury to return a verdict for plaintiff on its cause of action and to return a verdict against defendant on his counterclaim.

At the trial of the cause, plaintiff introduced and read in evidence several sections from chapter 32 (Hurd’s Ed. 1909), Revised Statutes Illinois, relating to corporations for pecuniary profit.

Section 1 of that chapter provides that corporations may be formed in the manner provided by the act “for any lawful purpose except banking, insurance, real estate brokerage, the operation of railroads and the business, of loaning money.”

Section 2 provides for the manner of obtaining the license, which is that whenever any number of persons not less than three, nor more than seven, shall propose to form a corporation under the act, they shall make a statement to that effect under their hands and duly acknowledged before some officer in the manner provided for the acknowledgments of deeds, setting forth the name of the proposed corporation, the object for which it is to be formed, its capital stock, the number [126]*126of shares of which such stock shall consist, the location of the principal office and the duration of the corporation not to exceed ninety-nine years, which statement shall be filed in the office of the Secretary of State. If the object for which the corporation is proposed to be organized is clearly and definitely stated, “and is a lawful object,” the Secretary of State shall thereupon issue to such persons a license as commissioners to open books for subscription to the capital stock of the corporation at such times and places as they may determine. Upon the filing of any statement with the Secretary of State for the purpose of obtaining a license to incoi-porate, he may propound such interrogatories as he shall deem necessary to ascertain the true object.

The third section provides that after the capital stock shall be fully subscribed, the commissioners shall convene a meeting of the subscribers for the purpose of electing directors, or managers and the transaction of such other business as shall come before them.

The fourth section provides that the commissioners shall make a full report of their proceedings, “which report shall be sworn to by at least a majority of the commissioners and shall be filed in the office of the Secretary of State. The Secretary of State shall thereupon issue á certificate of the complete organization of the corporation, making a part thereof a copy of all the papers filed in his office in and about the organization of the corporation,, and duly authenticated under his hand and seal of State, and the same shall be recorded in a book for that purpose, in the office of the recorder of deeds of the county where the principal office of such company is located. Upon the recording of the said copy, the corporation shall be deemed fully organized and may proceed to business.”

Section 5 provides that “corporations formed under this act shall be bodies corporate and politic for the period for which they are organized; may sue and be [127]

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Cite This Page — Counsel Stack

Bluebook (online)
166 S.W. 629, 183 Mo. App. 119, 1914 Mo. App. LEXIS 461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rialto-co-v-miner-moctapp-1914.