Strachan Shipping Co. v. Hazliphood Cotton Co.

132 S.E. 454, 35 Ga. App. 94
CourtCourt of Appeals of Georgia
DecidedFebruary 19, 1926
Docket15461
StatusPublished
Cited by3 cases

This text of 132 S.E. 454 (Strachan Shipping Co. v. Hazliphood Cotton Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Strachan Shipping Co. v. Hazliphood Cotton Co., 132 S.E. 454, 35 Ga. App. 94 (Ga. Ct. App. 1926).

Opinion

Jenkins, P. J.

The Supreme Court, in answer to questions certified to it in this case (161 Ga. 480), adjudicated that the amendment to the petition did not set forth a new and different cause of action, and that both the original petition and the petition as amended constitute an action in tort arising out of the negligent breach of a contract, but not an action in trover. Not being an action in trover, the plaintiff must recover, if it recovers at all, by proving a negligent breach of the defendant’s duties arising out of the contract; and consequently, if the defendant did not make the contract for itself, the plaintiff could not recover under the form of action brought and maintained. It is the rule that “If the employer is in fact an agent and acts with the authority of an undisclosed principal, either he or such principal may be held liable at the election of the opposite party.” Willingham v. Glover, 28 Ga. App. 394, 396 (3) (111 S. E. 206). The first question in the instant case, therefore, is whether the defendant contracted for itself, or on behalf of a disclosed principal. The contract being signed in its own name, with merely the word “agent” appended thereto, the presumption would ordinarily arise that it would be bound for the contract, on the theory that its principal was not disclosed. But such a presumption is a rebut-table presumption, and it is permissible to show that even though a simple contract was signed by an agent in his own name, the in[97]*97tention of the parties was that the agent’s principal should be bound by the contract and not himself. In the case, of Allen v. Montgomery, 25 Ga. App. 817, 820 (105 S. E. 33), this court used the following quotations: “ ‘Contracts not under seal, other than negotiable instruments, require but little observance of mere form. The intention of the parties is the prevailing consideration in. the construction of this class of contracts; and the rule is well established that, if the nature and circumstances of the transaction show that the intention was to bind the principal and not the agent, effect will be given to such intention, though the agent signs his own name merely.’ 1 Am. & Eng. Enc. of Law (2d ed.), 1050, 1051. See 2 C. J. 674; Merchants Bank of Macon v. Central Bank of Georgia, 1 Ga. 418 (44 Am. Dec. 665); Cleveland v. Stewart, 3 Ga. 283; Raleigh & Gaston R. Co. v. Pullman Co., 122 Ga. 700, 709 (50 S. E. 1008).”

The plaintiff in error takes the position that in making the affreightment contract it necessarily acted as an agent of the emergency-fleet corporation, or the United States shipping board, and that the courts must take judicial cognizance that this was the only capacity in which it could have acted at the time of the contract, in view of the war-time legislation of Congress. We have carefully considered the act of Congress of September 7, 1916 (39 Stat. 728 et seq., Comp. Stat. 1918, § 8146a et seq.), relating to the formation of the United States shipping board, out of which grew the emergency-fleet corporation; the various acts of Congress amendatory thereof, and also the case of The Lake Monroe, 250 U. S. 246 (39 S. Ct. 460), treating of such acts, and have arrived at the conclusion that the culmination of the powers and exercise thereof in and by the fleet corporation did not ipso facto disarm all shipping interests and owners of vessels in this country from doing foreign business and making contracts therefor as principals. This act and the conduct of the President thereunder did not ipso facto, we think, have the sweeping effect thus claimed for them of relegating all such shipping interests and owners to the category of bare agencies for the government. The act seems to have provided that these agencies of the government should have the power to requisition any or all of such facilities for foreign trade; and that it would remain with them as to vessels and other [98]*98facilities which they would so requisition for service to the government in such trade. In the case of The Lake Monroe, 250 U, S. 252 (supra), the court said: “In this state of affairs, Congress embodied in the 'Urgent Deficiencies Appropriation Act of June 15, 1917, c. 29, 40 Stat. 182, a clause entitled ‘Emergency Shipping Fund,’ which conferred upon the President broad powers of control over contracts for the building, production, or purchase of ships or material, and among others the power to purchase, requisition, or take over the title to, or the possession of, for use or operation by the United States any ship now constructed or in process of construction or hereafter constructed, or any part thereof, or charter of such ship.” So it will be seen that they were not taken over in mass or requisitioned merely by the passage of the legislation or by the bestowal of these powers. And in claiming such requisitions of particular facilities by the government litigants have been left by the legislation, and the construction of it by the court, to show such facts by aliunde proof. From what has been said the question of whether the defendant below could act and did act as agent remains a question of fact; and we can not dispose of the question as a matter of law.

However, we are of the opinion that if the defendant below has shown, or hereafter shows, that in making the affreightment contract it did not act as a principal, but as a matter of fact was known to be acting as an agent for a disclosed principal, and that if the plaintiff below knew that the defendant was really acting in the matter for a disclosed principal, and not for itself, there can be no recovery in this action as brought and as maintained. The petition was drawn to recover damages against the defendant for its negligent failure to perform its contract duties under its affreightment contract. It was not drawn to recover against an agent for a tort committed by it, independently of the contract. The suit is admitted not to be in trover; and was so held by the Supreme Court. It is not an action for pure conversion, independently of the contract, and resting upon a basis of pure trespass. It is founded upon the violation of a carrier’s public duty arising out of its contract of carriage. And it is the law of this State that in such an action privity between the parties to the action must be shown. The Civil Code (1910), § 4408, provides as follows: “No privity is necessary to support an action of tort; but if the tort [99]*99results from the violation of a duty, itself the consequence of a contract, the right of action is confined to the parties and privies of that contract, except in cases where the party would have had a right of action for the injury done, independently of the contract.” The suit as here brought and maintained could not have been maintained against anybody independently of contract. The contract must inevitably be looked to in order to ascertain what duty was violated by the guilty party. And it must inevitably be looked to in order to ascertain the party who was bound to the performance of that duty. Assuming, therefore, for the sake of the argument, that under the proof submitted the defendant was an agent only in the making of the contract, and that he made it for a disclosed principal, then the defendant, not being bound by the contract, is not liable to the plaintiff for the acts of negligence arising out of the contract as specifically charged in this petition.

The rule would be otherwise if the basis of the action did not arise out of a contract.

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132 S.E. 454, 35 Ga. App. 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/strachan-shipping-co-v-hazliphood-cotton-co-gactapp-1926.