Simpson v. Grand International Brotherhood of Locomotive Engineers

98 S.E. 580, 83 W. Va. 355, 1919 W. Va. LEXIS 175
CourtWest Virginia Supreme Court
DecidedFebruary 11, 1919
StatusPublished
Cited by46 cases

This text of 98 S.E. 580 (Simpson v. Grand International Brotherhood of Locomotive Engineers) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Simpson v. Grand International Brotherhood of Locomotive Engineers, 98 S.E. 580, 83 W. Va. 355, 1919 W. Va. LEXIS 175 (W. Va. 1919).

Opinion

POEEENBARGER, JUDGE :

In each of these two cases involving the same general principles and procedure and giving rise to similar questions, two writs of error were obtained. In each, a number of individuals were joined with the unincorporated association known as the Grand International Brotherhood of Locomotive Engineers, as defendants. Under instructions from the court, the jury in each returned a verdict for all the individual defendants, and a verdict against the association, assessing the damages in the Smith case at $15,931.00, and in the Simpson case, at $11,000.00. In each, the jury in response to interrogatories propounded by the court itemized its assessment of- the damages, allowing Smith $1,531.00, as compensation for the loss of his insurance, $2,400.00 for other compensatory damages and $12,000.00 as punitive damages; and Simpson, $4,500.00 as compensation for the loss of insurance and [359]*359$6,500.00 as additional compensatory damages. On a motion for a new trial, tbe court eliminated the punitive damages in the Smith case and rendered judgment for the res--idue of the verdict, amounting to $3,931.00. In the other,, the motion for a new trial was overruled and judgment rendered for the entire amount of the verdict. Writs of error were awarded to both plaintiffs, on their complaints of the-action of the court in directing a verdict for the individual defendants, as well as other assignments of error set forth in their petitions; and, on numerous assignments of error, like writs were awarded to the Brotherhood.

Both actions seek damages for wrongful expulsion of the. plaintiffs from the N. H. Smith Division No. 448 of the Brotherhood, on account of alleged violations of rules and regulations of the association, under coercion by Warren S. Stone>, Grand Chief Engineer of the Brotherhood, the difusión having previously exonerated them on two occasions, once by a mere resolution and again by a formal vote in accordance with the association laws and regulations. Stone being a. non-resident and not served with process, was eliminated-from the ease by a dismissal. The other thirty-three individual defendants in each ease, residents of the state, were made-parties under the impression that they were liable in damages to the plaintiffs, by reason of their having voted for-their expulsion from the division. As to fourteen of them, Smith’s action was dismissed on his own motion, leaving nineteen. The other action was prosecuted to final judgment as to all of the individuals defendants. On the assumption of their identity with the Brotherhood, the Locomotive Engineers Mutual Life and Accident Insurance Association and the Locomotive Engineers Building Association, both foreign corporations, were also joined as defendants, but the actions were dismissed as to the former on its demurrers to the declarations, and as to the latter on its special pleas denying the jurisdiction of the court as to it.

A preliminary inquiry of vital importance in some aspects of the ease is whether the Grand International Brotherhood of Locomotive Engineers has been brought within the jurisdiction of the court by sufficient process and pleadings. [360]*360Upon the assumption that it was a corporation qualified under the laws of the state to do business here, the summons in each case, as to it, was served upon the Auditor of the state, and it was impleaded as a corporation. It filed special pleas at rules denying that it was a corporation, to which the plaintiffs replied generally and the issues thus raised were determined in favor of the defendant, and the actions ■accordingly dismissed as to it. But in the same order in which the dismissal was formally adjudged, the plaintiffs ¿were permitted to amend both the summons and the declaration in each case, by striking out the words “a corporation,” and inserting in lieu thereof the words ‘‘a fraternal beneficiary association.” Assignments of error claim the benefit •of the technical dismissals entered upon the record; but, going beyond that, objections to the amendments are based upon other grounds. Deeming itself to be out of court, by reason of the dismissals, at the time of the making of the amendments, the association entered, no objection, but the individual defendants objected and excepted to the action of the court in permitting the amendments. The course pursued by the plaintiffs was adopted upon two theories; (1), identity of the Grand International Brotherhood of Locomotive Engineers with the Locomotive Engineers Mutual Life and Accident Insurance Association and the Locomotive Engineers Building Association; and, (2), liability of the association to be sued by its association name under the provisions of chapter 55A of Barnes’ Code, 1918.

Of course a corporation, like an individual, majr do business under an assumed or false name and be sued by such name, Marmet Co. v. Archibald, 37 W. Va. 778; but, in order to apply this doctrine, incorporation by some name must be established. One who contracts with and receives money from certain persons acting as a corporation under a valid charter granted under a general law, but acts within both the charter and the general law, cannot avoid the obligation of the contract, by denial of the corporate existence of the persons so contracted with. Bon Aqua Imp’t. Co. v. Standard Fire Ins. Co. 34 W. Va. 764. But this involves action in a corporate capacity or name. In the absence of evidence [361]*361to tlie contrary, there is a presumption that persons representing themselves to be incorporated and contracting in a corporate name, are what they represent themselves to be, and the situation, of the parlies and circumstances are often such as to estop them from denial of the fact. Singer Mfg. Co. v. Bennett, 28 W. Va. 16; Miller v. Newburg Orrel Coal Co., 31 W. Va. 836. Lack of proof of the element of representation of corporate existence renders this principle unavailable to the plaintiffs. And, in the absence of proof to the contrary, very slight evidence of incorporation will sustain a finding that a party to a contract is a corporation, though not so described in the contract. Brotherhood of Locomotive Firemen v. Cramer, 60 Ill. App., 212. Independent Order of Mutual Aid v. Paine, 122 Ill. 625. Under some of these decisions, the adoption of a name by which the organization shall be known and the use of a seal, as disclosed by corres< pondence found in the record, might be sufficient evidence to establish the corporate existence of the association, contrary to the finding in the trial court, in the absence of proof to the contrary, but direct and positive evidence that it is a voluntary and unincorporated association clearly overthrows a mere inference arising from these circumstances. There is no proof that the contracts of membership made between the plaintiffs, and the association were understood or deemed bj^ them to have been made in a corporate name. On the contrary, both admit in their testimony, that the association is not incorporated. Not having been mislead nor deceived as to the capacity in which the association made its contracts with them, they are not in a position to invoke the doctrine of estoppel.

The .amendments were permitted and the association held to answer, under the impression that the Brotherhood is a fraternal benefit society, within the meaning of the provisions of'ch. 55A of the Code, re/presented by the State Auditor, for purposes of service of process, and liable to be sued in its association name.

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Bluebook (online)
98 S.E. 580, 83 W. Va. 355, 1919 W. Va. LEXIS 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simpson-v-grand-international-brotherhood-of-locomotive-engineers-wva-1919.