Woodward Hardware Co. v. Fisher

190 S.W. 576, 269 Mo. 271, 1916 Mo. LEXIS 132
CourtSupreme Court of Missouri
DecidedDecember 20, 1916
StatusPublished
Cited by11 cases

This text of 190 S.W. 576 (Woodward Hardware Co. v. Fisher) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woodward Hardware Co. v. Fisher, 190 S.W. 576, 269 Mo. 271, 1916 Mo. LEXIS 132 (Mo. 1916).

Opinion

RAILEY, C.

Plaintiff, an Illinois corporation, sued defendants as directors of the Union Warehouse & Implement Company, a Missouri corporation, duly organized on February 2, 1909, and engaged in the general mercantile business in the town of East Prairie, Missouri. It is averred in the petition that the Missouri corporation continued to do business until December 2, 1913, when its charter was duly forfeited for failure to register as required by the laws of this State; that defendants continued to exercise the powers and privileges of said Missouri corporation, from December 2, 1913, until about the 1st of. January, 1915; that they continued business under their said corporate franchise by purchasing and selling goods, wares and merchandise; that after the forfeiture aforesaid, and while engaged in the business aforesaid, the defendants bought from plaintiff, between April 9, 1914, and October' 21, 1914, goods of the value of $10.62, sued for [275]*275herein, and that no part of said sum has ever been paid, etc.

Defendants, Fisher, Davidson, Morgan and Sager, filed a joint amended answer to said petition. They admitted the incorporation of plaintiff, but denied each and every other allegation of the petition. They charge in said answer that the acts of the General Assembly of the State of Missouri, for 1913, Laws 1913, pages 167 to 174, inclusive, and particularly section 20 of' said act, under which this suit was brought, are unconstitutional and void, for the reason that the title of said act does not clearly express the matters contained therein, and particularly those in section 20 thereof, as required by section 28 of article 4 of our Constitution.

It is averred that said section 20 undertakes to impose penalties on individuals and on officers and directors of certain corporations therein described, while the title of said act clearly indicates the imposition of penalties on corporations only. It is further alleged, that said act is unconstitutional, because it is an ex post facto law; is retrospective in its operation, and violates section 15 of article 2 of our Constitution, in that it attempts to make certain 'persons, therein described, liable for debts and obligations created by certain corporations, whether said debts were created before or after the charters of such corporations were forfeited; and whether or not such debts were created and liabilities incurred before the passage of said act. It is further averred that said act undertakes to impose new and unusual obligations and penalties on corporations already created and existing prior to the passage and going into effect of said act; that it creates and imposes new and unusual obligations on individuals connected with such corporations. It is further charged in the answer that said act is void because too vague, indefinite and uncertain in its provisions, to be capable of practical construction and enforcement, in that it does not sufficiently specify and designate what officers, directors- and persons of such corporations as may violate its provisions shall be liable for the debts of such corpor[276]*276ations; and does- not sufficiently describe or specify for what debts of such corporations, said officers, directors and persons shall be liable.

It appears from the testimony of Cornelius Roach, Secretary of State, that an entry was made in the records of his office on October 11, .1915, stating that “on December 2, 1913,” the charter of the above Missouri corporation was forfeited. He testifed that no certificate was ever sent to the recorder of deeds in Mississippi County, Missouri, stating that the Union Warehouse &'Implement Company was suspended; nor did he ever receive from the recorder of deeds of said county, any certificate or statement, that a certificate showing the suspension of said Missouri corporation had been posted in his office for a period of twenty days. No entries were made, of any kind, on the records of his office with reference to said corporation, until after May 22, 1915.

It is conceded that plaintiff’s account is correct, and that the last item therein was furnished to the . Union Warehouse & Implement Company on October 21, 1914,

It appears from the evidence, that the Union Warehouse & Implement Company, through its directors, notified Sexton, general manager, in October, 1914, not to buy any more goods, and he bought no more thereafter. The business was closed out in March or April, 1915.

On February 29, 1916, after hearing the evidence, the circuit court found the issues in favor of the defendants and entered its judgment accordingly. Plaintiff filed a motion for a new trial, which was overruled, and the cause was duly appealed to this court.

to^Act. I. Section 20 of the Act of 1913, Laws 1913, page 171, is assailed by respondents on the ground that the title to said act does not clearly express the matters contained therein, as required by section 28 of artide 4 of our Constitution.’ The title to the above act read as follows:

“An act to provide for annual registration, supervision, and filing of annual reports of certain corpor[277]*277ations; suspension and forfeiture of corporate charters for violation of this act; reinstatement after suspension or forfeiture; and fixing fees for registration, prescribing fines and penalties for violation, and repealing all acts in conflict therewith, with an emergency clause.”

Section 20 of said act reads as follows:

“Any person, or persons, who shall exercise, or attempt to exercise, any of the powers, privileges, or franchises of any corporation after the certificate, or license, of same has been forfeited and cancelled as in this act provided, shall he deemed guilty of a misdemeanor, and upon conviction punished as hereinafter provided; and the officers and directors, or principal agent in Missouri, if a foreign corporation, of any corporation which shall so violate the provisions of this act shall he held as partners and become severally and individually liable for the debts of such corporation.” The plaintiff is seeking to hold defendants liable for its demand on the theory that the charter of the Union Warehouse & Implement Company was forfeited and cancelled on December 2, 1913, because it failed to file its report with the Secretary of State, as required by said act; and that thereafter these defendants bought from plaintiff the goods in controversy, in the name of said Missouri corporation, and became liable as partners therefor. Although a corporation chartered under the laws of this State may have complied with the provisions of the above act, and purchased goods while in good standing with the State, yet section 20, supra, would make the directors of such corporation personally responsible, as partners, for said goods, if thereafter, the charter was forfeited and cancelled and other goods were bought by said corporation, subsequent to the date of such forfeiture and cancellation. Whether the title to said act be casually or carefully considered, there is not the slightest intimation therein that individuals should be held liable, as partners, for debts which they never personally contracted, and which were purchased solely by the corporation in its corporate name.

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Bluebook (online)
190 S.W. 576, 269 Mo. 271, 1916 Mo. LEXIS 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woodward-hardware-co-v-fisher-mo-1916.