Thompson v. Laboringman's Mercantile & Manufacturing Co.

53 S.E. 908, 60 W. Va. 42, 1906 W. Va. LEXIS 23
CourtWest Virginia Supreme Court
DecidedJanuary 30, 1906
StatusPublished
Cited by23 cases

This text of 53 S.E. 908 (Thompson v. Laboringman's Mercantile & Manufacturing Co.) 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
Thompson v. Laboringman's Mercantile & Manufacturing Co., 53 S.E. 908, 60 W. Va. 42, 1906 W. Va. LEXIS 23 (W. Va. 1906).

Opinion

Poffenbarger, Judge:

The Laboringman’s Mercantile and Manufacturing Company seeks the reversal of a judgment against it in favor of A. Thompson, for the sum of $407.44, rendered by the circuit court of Tucker county, in an action of debt on a promissory note.

This action is similar in some respects to that of Third National Bank v. Laboringman's Mercantile and Manufacturing Co., decided by this Court and reported in 49 S. E. 544. Some of the principles announced in that case are applicable and controlling here.

The note, bearing date January 24, 1901, is for the sum of $382.39, was payable thirty days after date at the office of [44]*44the Blackwater Lumber Company in Davis, West Virginia, and was signed “Laboringmans Mer. & Mfg. Co. P. M. Murphy, Pres.” The parol evidence introduced is, in substance, as follows: A Thompson says Murphy approached him on the day of the date of the note and requested a loan, representing that the defendant company had a note due at the bank which it was unable to meet by a few hundred dollars, and also that there was an account due from it to the Blackwater Lumber Company, a corporation of which the said Thompson was practically the owner, which the defendant desired to pay. Thereupon Thompson prepared a note, and, after obtaining the signature thereto, gave his check for two hundred dollars, the difference between the amount due the Blackwater Lumber Company and the face of the note. Being asked, on cross-examination, whether the amount thus deducted was due from the defendant company or from the Davis Poultry Company, with which also Murphy was connected, he said he did not know, but had relied upon the information given him by Murphy, who had said “Our company owed the Blackwater Lumber Company. ” Whether the check was deposited to the credit of the defendant company in bank and the amount thereof checked out in payment of its debts or otherwise applied by it does not appear. After the note became due, it was protested, and notice thereof sent to the defendant company. Sometime thereafter, Thompson presented the note to the manager of the company at its office, and, later, to John F. Getty, supposing him to be one of the directors of the defendant company, but Getty seems not to have been a director until April 20, 1901. These demands were made probably in March or April, 1901. George B. Thompson testifies that very soon afterwards he called upon W. E. Patterson, secretary and director of the company, concerning the note and was told by Patterson that he knew nothing regarding it but would consult Murphy about it and send him down to see about it. John F. Thompson testified that he had presented the note in August or September, 1901, to W. W. Golightly, manager of the company, and demanded payment thereof and was informed that the directors would have to take action upon it before it could be ' paid. Having been informed that the directors would meet in a day or two, he went back the next week and was told [45]*45that they had decided that they had no right to act pn matters of that kind, the meeting having been a special meeting, but that a regular meeting would be held soon, at which action upon it could be taken. After the regular meeting he went back and was informed that nothing had been done about the note. The book in which the directors recorded their proceedings shows two entries made on the 5th day pf September, 1901, which are, respectively, as follows:

“On motion of Mr. Marks, seconded by Mr. Pressau, it was ordered that the demand of Mr. A. Thompson for the payment of the note of $382.39, contracted by P. M. Murphy be laid on the table.”

“On motion of Mr. Marks, seconded by Mr. Pressau, it was ordered that the demand of Mr. A. Thompson, for the payment of the note of $382.39, contracted by P. M. Murphy, without the knowledge and consent of the directors, be laid on the table.”

As tending to show acts from which the public might infer the authority of Murphy to borrow money for his company and execute its obligations therefor, it was shown that he had borrowed of George B. Thompson, January 15, 1901, two hundred dollars, and, on February 2, 1901, five hundred dollars, for which, on the last named date, he had given the defendant company’s check, post dating it. When due, it was presented for payment and protested. Later, it was re-pré-sented, upon information from Murphy that it would be paid, and was accordingly paid, but whether the money was deposited for that purpose by the company itself, or by Murphy, does not appear. On the 21st day of February, 1901, Murphy gave to F. A. Cruickshank the note of the company for two hundred dollars for money loaned by him, which note was afterwards paid in currency by P. M. Murphy. The evidence further discloses that at about the time the check, given to George B. Thompson, was protested, Murphy, with the knowledge and authority of the directors, was' at Piedmont, W est Virginia, attempting to raise money for the company on its note for two thousand dollars.

The question of liability was withdrawn from the jury by a demurrer to the evidence, which the court overruled and rendered judgment for the amount due as ascertained by the verdict.

[46]*46It is not pretended that Murphy had any inherent authority or power as president to borrow money and execute the 'company’s note therefor. That such authority is not possessed by the president of a corporation, in the absence of .an express delegation thereof, has been determined by this Court. Bank v. Kimberland, 16 W. Va. 579; Third National Bank v. Laboringman's &c. Co. 49 S. E. 544. Nor is it pretended that he had any antecedent express authority from the board of directors to so bind the corporation.

The judgment rests upon two propositions, the first of which is that there is evidence which would justify a finding that the defendant, with full knowledge, allowed Murphy to .so act and deal, in respect to its business, as to constitute a representation to the public of authority in him to borrow money on its account. The facts relied upon to sustain this proposition are of the same character as those set up in Third National Bank v. Laboringman’s &c. Co., and, in that case, they were deemed and held wholly insufficient for that purpose. They were almost contemporaneous in date with the ’transaction with Thompson. It does not appear that he had any knowledge of but one such transaction, namely, the first one had with George B. Thompson. Nothing in the testimony indicates that the directors of the corporation had any knowledge of .this transaction subsequently had with George B. Thompson or the one had with W. W. Golightly. In the absence of any knowledge of these facts on the part of the board of directors, there is no foundation for saying the corporation held Murphy out to the public as an agent authorized to borrow money for use in its business. A verdict of a .jury, predicated upon such testimony, could not be sustained and, therefore, the evidence is clearly insufficient upon a demurrer thereto.

The other view is that of ratification of the unauthorized .act of the president. There is no claim of an express ratification. The contention is that it is a ratification by acquiescence and retention of benefits. As noted in the statement of the evidence, it does not appear that the account which was set off against the note at the time of its execution was 'due from the defendant company. Mr. Thompson’s evidence .goes no further than to say it was so represented to him by Murphy .and he acted upon that information.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

France v. SOUTHERN EQUIPMENT CO.
689 S.E.2d 1 (West Virginia Supreme Court, 2010)
Silling v. Erwin
885 F. Supp. 881 (S.D. West Virginia, 1995)
Samsell v. State Line Development Company
174 S.E.2d 318 (West Virginia Supreme Court, 1970)
Samsell v. State Line Development Co.
174 S.E.2d 318 (West Virginia Supreme Court, 1970)
Greep v. Bruns
159 P.2d 803 (Supreme Court of Kansas, 1945)
Alexander v. Phillips Petroleum Co.
130 F.2d 593 (Tenth Circuit, 1942)
Henshaw v. Globe & Rutgers Fire Insurance Co.
166 S.E. 15 (West Virginia Supreme Court, 1932)
Gain v. Gerling
153 S.E. 504 (West Virginia Supreme Court, 1930)
First National Bank v. Tri-State Equipment & Repair Co.
152 S.E. 635 (West Virginia Supreme Court, 1930)
Realty Co. v. Supply Co.
148 S.E. 122 (West Virginia Supreme Court, 1929)
Mack Realty Co. v. Beckley Hardware & Supply Co.
148 S.E. 122 (West Virginia Supreme Court, 1929)
Smiley v. Bank of Wyoming
140 S.E. 330 (West Virginia Supreme Court, 1927)
Branford State Bank v. Howell Co.
102 So. 649 (Supreme Court of Florida, 1924)
Pan Coal Co. v. Garland Pocahontas Coal Co.
125 S.E. 226 (West Virginia Supreme Court, 1924)
Cochran v. Craig
106 S.E. 633 (West Virginia Supreme Court, 1921)
Hartley v. Ault Woodenware Co.
97 S.E. 137 (West Virginia Supreme Court, 1918)
Flanagan v. Flanagan Coal Co.
88 S.E. 397 (West Virginia Supreme Court, 1916)
La Belle Iron Works v. Quarter Savings Bank
82 S.E. 614 (West Virginia Supreme Court, 1914)
American Rio Grande Land & Irrigation Co. v. Mercedes Plantation Co.
155 S.W. 286 (Court of Appeals of Texas, 1913)
Elk Valley Coal Co. v. Thompson
150 S.W. 817 (Court of Appeals of Kentucky, 1912)

Cite This Page — Counsel Stack

Bluebook (online)
53 S.E. 908, 60 W. Va. 42, 1906 W. Va. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-laboringmans-mercantile-manufacturing-co-wva-1906.