Waller v. Bank of Kentucky

26 Ky. 201, 3 J.J. Marsh. 201, 1830 Ky. LEXIS 21
CourtCourt of Appeals of Kentucky
DecidedJanuary 8, 1830
StatusPublished

This text of 26 Ky. 201 (Waller v. Bank of Kentucky) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waller v. Bank of Kentucky, 26 Ky. 201, 3 J.J. Marsh. 201, 1830 Ky. LEXIS 21 (Ky. Ct. App. 1830).

Opinion

Chief Justice Robertson

delivered the opinion of the Court.

This is an action of assumpsit, by Ab-salomW. Waller, against the bank of Kentucky, for compensation, which he claims for services, as one of its clerks, since 1825.

Supposing that the bank could not be legally bound by any contract, which had not been authenticated by its corporate seal, the circuit court sustained a demurrer, to the declaration, and Waller has prosecuted this writ of error, with a supeisedeas.

As the declaration is in sufficient form, the principal question, which the record presents for our consideration, is, whether assumpsit can be maintained against a corporation?

As a corporation has no natural existence, l?ut is exclusively an artificial being, it is represented and recognized by its corporate seal, which is substituted as the sensible emblem or effigy of that, which is created by, and exists only in law.

Therefore, as a general proposition, it is undcuia. ble, that a corporation cannot act without a seal.

But is'this proposition universal?.

As a corporation has no visible or actual existence, and is known by its seal, some of the elementary writers have inferred, and therefore, have stated, in [202]*202comprehensive terms, without any exception, or qualiCCilti°n5 that a corporate body can make no valid contract, of any kind, or for any purpose, nor do any other legal act, without the authentication of its seal.

When corpot ration makes contract, its beex4 ressed through corporate sea), ct b a^tat°r" ute, tlbind" ^ffixationa?4 Jtsseaj,

Blackstone, (I. Com. 475) says, “a corporation, being an invisible body, cannot manifest its inten-tions, by any personal act, or oral discourse;it there-, fore acts, and speaks, only by its common seal.”

'Blackstone’s deduction, is as logical, as his premises are true. But many, who have seen this, and similar authorities, in some other books, have extended their consequences further‘than the text in Blackstone requires, and beyond tbeTeason,from which he deduced bis general proposition.

’ft is true, that a -corporation has no persona! identity; it is, therefore, - necessarily true, that it can do np personal act; has no personal rights; and, is under, no personal obligations. Consequently, it cannot bold an office; nor be an executor; nor make a will; It can only appear in courfby attorney; ftcan neither sue, nor be sued, for a battery, “for it can neither beat, nor be beaten, in'its’body 'politic.” It cannot ■commit a crime, nor be committed to prison.

It is equally true, that a corporation aggregate can have but one will, and that is compounded of the united wills of its several constituent members; and that, consequently, as all the natural'persons, composing the'body corporate, constitute only one person, in confemplation of law, whose being is corporate.only, the seal of the corporation “unites the several assents of thfe individuals who compose the community, and makes one joint assent of the whole.”

When a corporation makes n-contract directly, and by its own immediate volition, its assent must be expressed through its corporate seal, unless it be author-'ze<^ ^y express statute, to bind itself .without the affix-ationof .its seal. This is a necessary consequence, from the nature of a corporation. It possesses, indi-vfcJuality, only in contemplation of law, and -is seen and acknowledged only, through its seal.

But, does it not result as a corollary, that a corporation can do no act, which shall be binding upon [203]*203it, nor incur any liability by either its assent or the operation of law, unless the act, or liability be attested by its seal?

In its rela~v tion, as an individual, to natural persons, it can be accredited, only by its seal. Bin for regulating itself., and in its own police, it may act efficiently without seal. May pass biz-laws; elect its officers and agents, and keep record ofits proceedings; and they are all valid, without affixation of seal. It cannot contradict its feof-

In its relation as an individual, with pa'tural persons, it can be accredited only by its seal. But for regulating itself, and determining its own police and rules of action, it may will and act efficiently without the instrumentality of its seal. It may pass by-law?, and the seal is not necessary to their validity. It may elect its officers and agents, without attesting their appointments, by letters patent. It may ' keep a record ofits proceedings, and this will be good without the seal. It cannot deny o.r contradict its record; and, therefore, it is bound by its record'. I. Salkeld, 192; I. Lord Raymond, 688.

“An aggregate corporation may employ any one in ordinary services, without deed, I. Vent. 47.”
“Such a corporation may appoint a bailiff, tn-take a distress, without deed or warrant.”' I; Salkeld, 191.
“A corporation may,.without seal, duly authorize an agent to sign notes.” Rex vs. Bigly, III Pr. Wms. 419.

Although no special, mode be prescribed by law,, for transfering stock, it may be transferred, without the use of the. seal. Shipley, et al. vs. The Mechanics Bank, X, Johnson, 484.

In the Attorney General vs. Davis, (II. Atkins, 212); Lord Hardwick says, that, it is not necessary, that, evey corporate act,, should be attested by the seal of the corporation. Such as the appointment of a Chap^ lain, or a presentation to a living, &c.

The same sentiment is expressedin “the Attorney-General vs. Scott, I. Vesey, 413; and in Venirs Abr. 268, et sequel; and in Chitty on Contracts, 84; and in Bacon’s Abr. Cor’n. e. 3; and in Blow. 91, b; and in II. Saunders, 305.

The supreme court of the United States, decided in the case of the Bank of Columbia vs. Patterson’s administrator, (VII. Cranch, 306) that assumpsit, on-either an express promise, by an agent of a corpora[204]*204tion, or on a promise, implied by law, may be maitV ta'ne<^ against the corporation. And, in that case, it laid down as a sound rule of law, “that whenever a corporation is acting within the scope of the legitimate purposes of its institution, all parol contracts, made by its authorized agents, are express promises of the corporation; and all duties imposed on them bylaw,and all benefits, conferred attheirrequest, raise implied promises, for the enforcement of which, an action may “well lie.”

Many cases are cited in that opinion, and the foregoing is the principle, which the court extracted from all the cases which it received, both in favor of, and opposed to, the doctrine which it establishes.

The same doctrine, has been repeatedly recognized in New York. See Stafford vs. the Alderman, &c. of Albany, (VI. Johnson’s Reports, 1) Danforth vs. the Schoharic Turnpike Road, (XII. Johnson, 227.)

And it has been as well settled in Massachusetts, in the case of Ilajdon vs. the Middlesex Turnpike, (X. Tyng’s Mas. Rep. 397.

But this court has decided, that assumpsit cannot be maintained against a corporation, for work and labor, done to the use of the body politic, on its implied request, nor on the express request of its agent. See the Frankfort Bank vs. Anderson, III. Marshall, 1.

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26 Ky. 201, 3 J.J. Marsh. 201, 1830 Ky. LEXIS 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waller-v-bank-of-kentucky-kyctapp-1830.