School Town of Princeton v. Gebhart

61 Ind. 187
CourtIndiana Supreme Court
DecidedMay 15, 1878
StatusPublished
Cited by24 cases

This text of 61 Ind. 187 (School Town of Princeton v. Gebhart) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
School Town of Princeton v. Gebhart, 61 Ind. 187 (Ind. 1878).

Opinion

Howk, J.

In this action, the appellee, as plaintiff, sued the appellant, as defendant, in a complaint of three paragraphs, in the Gibson Circuit Court.

The appellant demurred to each of the paragraphs of the complaint, upon the ground that it did not state facts sufficient to constitute a cause of action, which demurrers were severally overruled, and to these decisions the appellant excepted.

. The appellant answered in twelve paragraphs, of which the eleventh paragraph was struck out on appellee’s motion, and his demurrers to the second, third, fourth, fifth, seventh, eighth, ninth, tenth and twelfth paragraphs of answer, for the want of sufficient facts therein to constitute defences to the action, were severally sustained, and to all these decisions the appellant excepted.

The first paragraph of the answer was a general denial, and -to the sixth paragraph -thereof the appellee replied by a general denial.

The venue of the action having been changed to the court below, the issues joined were there tried by a jury, and a verdict was returned for the appellee, assessing his damages in the sum of one thousand one hundred and seventy-one dollar’s and ninety-five cents.

[189]*189The appellant’s motions for a new trial, and in 'arrest of judgment, were severally overruled, and its exceptions were duly saved to each of these decisions; and the court then rendered judgment on the verdict.

In this court, the appellant has assigned, as errors, the following decisions of the court below :

1. In overruling its demurrers to each of the paragraphs of the appellee’s complaint;

2. In sustaining the appellee’s demurrers to the second, third, fourth, fifth, seventh, eighth, ninth, tenth and twelfth paragraphs of the appellant’s answer;

3. In striking out the eleventh paragraph of the answer;

4. In overruling its motion in arrest of judgment; and,

5. In overruling its motion for a new trial.

We will consider and decide the questions in this case, presented and discussed by the appellant’s learned attorney in his brief in this court, in the same order in which he has presented them.

1. In the first paragraph of his complaint, the appellee alleged, in substance, that the appellant was indebted to the appellee in the sum of one thousand ninety-seven dollars and twenty-five cents, on account of three hundred and ninety-nine feet of cornice, including labor and material, furnished the appellant for a certain schoolhouse belonging to the appellant; that said cornice, including the labor of putting it on, was furnished and sold to the appellant at and for the price of two dollars and seventy-five cents per foot; that it was’furnished by the appellee to the appellant, at the special instance and request of the then school trustees of said town; and, for said cornice and labor- so furnished, the appellant agreed to pay appellee the said sum; that the appellant, at the time said material and labor were so furnished, was, and ¡since had been, duly and legally organized as a corpora-j.tion- for school purposes, under the laws of this State; that said amount became due on the 8th day of Jury, [190]*1901871; that there was then paid the appellee the sum of two hundred and twelve dollars and eighty cents; that the balance of said amount, to wit, eight hundred and eighty-four dollars and forty-live cents, although long since due, still remained unpaid; that the payment of said balance had been unreasonably withheld from the appellee; and that, for that reason, the appellant was indebted to the appellee in the further sum of three hundred dollars, as interest on said balance. Wherefore, etc.

In discussing the sufficiency of this first paragraph of the complaint, the appellant’s counsel seems to have doubts of the corporate entity of the appellant, and of its power to make a valid and binding parol contract. The appellant is a municipal corporation “ distinct” from, the civil town of Princeton. Wright v. Stockman, 59 Ind. 65, and the authorities there cited.

In section 4 of “ An act to provide for a general system of common schools,” etc., approved March 6th, 1865, it is provided, as follows :

“ Sec. 4. Each civil township and each incorporated town or city in the several counties of,the State is hereby declared a distinct municipal corporation for school purposes, by the name and style of the civil township, town or city corporation, respectively, and by such name may contract and be contracted with, sue and be sued,” etc. 1 R. S. 1876, p. 780.

Section 5 of the same act provides for the election, and term of office, of three trustees for such a school corporation as the appellant, etc.; and section 10 of the same act provides, that such trustees shall “provide suitable houses,” etc., for the schools of such corporation. 1 R. S. 1876, p. 782.

Under these statutory provisions, it is clear we think, that the appellant is a corporation separate and distinct from the civil town of Princeton, clothed with full power to contract and be contracted with, and charged with the duty, among others, of building and providing suitable [191]*191school-houses. It was ouce the law, that a corporation could contract only by deed, under its corporate seal, but that is not the modern doctrine. The law is now well settled, that corporations are bound by their parol or implied contracts, intra vires, and in the discharge of the duties wherewith they are charged, to the same extent as natural persons. Sheffield School Township v. Andress, 56 Ind. 157.

It seems to us, that the appellant, in the transaction stated in the first paragraph of the complaint, acted within the scope of its corporate powers and in the discharge of duty; and that, having received the appellee’s material and labor, it was hound by its contract to pay therefor the price agreed upon.

The appellant’s attorney also makes the point, that the first paragraph of the complaint was defective and insufficient, because “ it nowhere alleges, that a demand was made upon the defendant for payment, before suit was brought.” It was alleged, that the amount of appellee’s claim became due on ‘July 8th, 1871, more than four years before this suit was brought. As a general rule, money due may he sued for without any previous demand therefor, and wre know of no good reason, which would make a demand necessary in this case. In our opinion, no error was committed by the court, in overruling the appellant’s demurrer to the first paragraph of the complaint.

The appellee alleged, in substance, in the second paragraph of his complaint, that, in the month of July, 1871, one Cunningham Allen was engaged in the erection and building of a large brick school-house for said town, on the Seminary lot, under a contract with, and the directions of, the school trustees of said town; that the appellee was employed by said Allen, as such contractor, to furnish material and labor, in the construction of said schoolhouse, in making and putting op said school-house three hundred and niuety-nine feet of galvanized-iron cornice, at two dollars and seventy-five cents per foot, amounting [192]

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Bluebook (online)
61 Ind. 187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/school-town-of-princeton-v-gebhart-ind-1878.