Wile & Co. v. Freedman

12 Pa. D. & C. 40, 1928 Pa. Dist. & Cnty. Dec. LEXIS 262
CourtPennsylvania Court of Common Pleas, Lackawanna County
DecidedAugust 13, 1928
DocketNo. 1104
StatusPublished

This text of 12 Pa. D. & C. 40 (Wile & Co. v. Freedman) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lackawanna County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wile & Co. v. Freedman, 12 Pa. D. & C. 40, 1928 Pa. Dist. & Cnty. Dec. LEXIS 262 (Pa. Super. Ct. 1928).

Opinion

Maxey, J.,

On July 23, 1928, the plaintiff, a New York corporation, issued a prascipe for a writ of replevin for certain men’s clothing. The writ is returnable to September Term, 1928. On said date, July 23, 1928, plaintiff’s bond in replevin was filed. It is a printed form of replevin bond bearing three lines for signature, each followed by the printed word “Seal” in a scroll. The bond is signed as follows:

(Written) (Printed)
M. Wile and Co., Inc. (Seal)
Jno. D. Metzger, (Seal)
R. L. Levy Ass’t Secty. (Seal)

Of the written part, all except the name “R. L. Levy” is in the writing of one person.

The corporate seal of the plaintiff is not aifixed to the bond.

On the same day, July 23, 1928, defendant filed a motion to quash the writ of replevin and assigned in support of the motion the following reasons:

“The writ of replevin in this case was issued without the plaintiff executing and filing with the prothonotary of this court a bond to the Commonwealth of Pennsylvania for the use of the defendant, with surety, in double the value of the goods sought to be replevined, as provided by the acts of assembly in such cases made and provided. No bond was executed by the plaintiff nor filed by the plaintiff in this case.
“There is an instrument in writing intended to function as such bond and running in the name of the plaintiff corporation, which it purports to bind for breach of its condition, but it is not executed by the proper officers of the said corporation and is not sealed with the corporation seal of the said company.”

A rule was granted to show cause why the writ of replevin should not be quashed and set aside.

[41]*41It is, of course, well-settled law that a corporation must have a seal in order to execute instruments required to he under seal and that a corporation may adopt any device as a seal, either generally or pro hac vice, but it is not law that any officer of a corporation, particularly a subordinate officer, can adopt, pro hac vice, any device to take the place of the official seal of the corporation duly adopted by the act of the corporation.

It is also the law that a seal is of the essence of a bond and that no writing can have the qualities which attach to a bond without the seal of the party executing it, and that, in the absence of a seal, an instrument will not be construed as a sealed bond, although there is a recital in the body thereof that the obligors and parties have set their hands and seals thereto: 9 Corpus Juris, § 19, page 14.

In the case before us, it is formally asserted and not denied that the printed word “Seal” which appears on the bond of the corporation purporting to attach it is not the seal of the plaintiff corporation. The identity of the alleged seal being challenged, the burden of proof is upon the plaintiff to meet this challenge. Instead of meeting the challenge, it, in effect, admits that the challenge is well taken — that the printed word “Seal” is not the seal of the plaintiff corporation.

It is true that the corporation could have adopted, generally or for this transaction, the seal used by its assistant secretary, but it is nowhere asserted that the corporation did so. In fact, it is tacitly conceded that it did not do so.

Plaintiff relies on the case of Pennsylvania Natural Gas Co. v. Cook, 123 Pa. 170. In that case the bond was signed: “Penna. Natural Gas Company, by B. F. Rafferty, Gen. Man. (Seal). B. F. Rafferty. United Gas Fuel Company, by J. M. Guffy, President. (Seal). Attest: J. M. Cooper, Secretary.” The bond was without the corporate seals, but with common scroll seals. The case was an action on this bond; the bond had already been offered and admitted in evidence and the case of the plaintiff had been closed;, then a motion was made objecting to the bond, first, because one of the corporations did not have its common seal thereon, and, second, because as to the other corporation the bond was ultra vires and void. The Supreme Court held that this motion came too late and said that they were not certain that a motion to strike it out would have availed the defendants, because they “had availed themselves of the consideration. They had obtained all they needed from the plaintiff. . . . When an agent exceeds his authority, his principal cannot avail himself of the benefit of his act and at the same time repudiate his authority. . . .” (page 183.)

In the case at bar, however, the bond was signed, not by the president and attested by the secretary, as in one instance, nor by the general manager, as in the other instance, in the case cited, but was signed by an assistant secretary. No consideration has yet passed to the plaintiff corporation, nor has it availed itself of any benefit of the assistant secretary’s act, and, therefore, it can repudiate his authority. In the case at bar, the motion to quash is not too late, but timely, and the defendant has not availed himself of any benefit under the bond.

The quotation from the above-cited case upon which the plaintiff principally relies is this, which appears on page 183 and is cited from Angelí & Ames on Corporations, § 226: “The signature of the agent of a corporation executing the instrument on its behalf, being proved, the seal, though mere paper and a wafer, stamped with the common desk seal of a merchant, will be presumed to be intended as the seal of the corporation until the presumption is rebutted by competent evidence.”

[42]*42The answer to that quotation, so far as it affects the case at bar, is that if the agent who executed the bond in question had authority to execute it, the seal used by him will be presumed to have been the seal of the corporation until the presumption is rebutted. In the case before us, the agent, that is, the assistant secretary, had no prima facie authority to execute the bond; and even if he did, the identity of the seal used by him is challenged and not denied. Hence, any presumption in its favor is rebutted. If this bond had been offered in evidence in some legal proceeding, the seal used might have passed current as the seal of the corporation because its' identity was not challenged, and until it was challenged, the presumption would be that the seal used was the official corporate seal. However, a mere presumption must, of course, give way when confronted by a fact to the contrary.

We, therefore, have this situation: the alleged bond of the plaintiff corporation is not a bond at all, because it is not under the common seal of the corporation.

As was said in Leazure v. Hillegas, 7 S. & R. 313, 318: “A corporation is an imaginary being; a creature of law, which cannot act otherwise than as described by law. Its deeds are authenticated by its common seal, but that seal must be proved. It is not one of those public matters of which individuals are bound to take notice.”

In Parkinson v. City of Parker, 85 Pa. 313, 316, the Supreme Court said: “The power, says Mr. Justice Strong, in Com. v. Pittsburgh, 5 Wright (41 Pa.), 284, ‘to execute and issue bonds, contracts and other certificates of indebtedness belongs to all corporations, public as well as private, and is inseparable from their existence. It is for this they hold a common seal. . . .’ ”

In United States v. Mercantile Trust Co., 213 Pa.

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

Related

Parkinson v. City of Parker
85 Pa. 313 (Supreme Court of Pennsylvania, 1877)
Penn. Natural Gas Co. v. Cook
16 A. 762 (Supreme Court of Pennsylvania, 1889)
Millward-Cliff Cracker Co.'s Estate
28 A. 1072 (Supreme Court of Pennsylvania, 1894)
United States v. Mercantile Trust Co.
62 A. 1062 (Supreme Court of Pennsylvania, 1906)
Hamborsky v. Magyar Presbyterian Church
78 Pa. Super. 519 (Superior Court of Pennsylvania, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
12 Pa. D. & C. 40, 1928 Pa. Dist. & Cnty. Dec. LEXIS 262, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wile-co-v-freedman-pactcompllackaw-1928.