96 N.Y.S. 1096 | N.Y. App. Div. | 1905
The plaintiff sought to recover from the defendants, as trustees of á membership corporation, for gooffs manufactured and delivered to the corporation, judgment having been entered against the corporation and execution returned unsatisfied. Section 11 of the.Membership Corporations Law (Laws of 1895, chap. 559, as amd. by Laws of 1899, chap. 292) provides that the directors of every membership corporation, with certain exceptions, “ shall be jointly and severally liable for any debt of the corporation contracted while they are directors, payable within, one yeár or less, from the date it was contracted, if añ actiop for the'collection thereof-be'brought ' against the corporation within one year after the'debt becomes due,' and an execution issued thereon to the county where its office is, or. where a certificate of its incorporation is filed, be returned wholly or partly unsatisfied; and if the action against the" directors' to recover the amount unsatisfied be commenced within one year after the return of such execution.” The corporation known as “ The American Pet Dog ■ Club ” was organized on' the 22d ■ day of June, 1888, under chapter 267 of the Laws of 1875, as. amended. ' The complaint alleges and the answer does not deny that the respond-, ent was the president-and one of the directors of the said corporation at the time, the‘debt was. contracted, November 25,1899. The plaintiff proved the.recovery of-judgment‘against the corporation and the return- of the execution unsatisfied, leaving the only "question at issue whether the goods were sold and delivered to the 'cor
I think this evidence was all competent and that ,it was error to exclude it. The objection to the evidence appears to be that the action of the board of directors of the corporation must- be proved by the. minutes of the meeting of the directors, and not by oral testimony of what happened at that meeting; but in this case there is no evidence that this corporation had any minutes or that there, was any .eintry or writing which contained a record of the meeting ©r of the contract or employment of Hodge ■ as an employee of the corporation. An act of the directors of the corporation employing a'person to act on its behalf would be a perfectly valid employment whether or not a record of .the- meeting was kept, Hodge assumed to act for the corporation in ordering these goods for it. The goods ’ were delivered at the office of the corporation by the plain tiff, and if Hodge had authority to order the goods and to receive them the corporation was liable. . . -
I cannot find direct evidence that these medals were used by .the corporation at its show.,’ The 'corporation could ratify the act of Hodge, in ordering the medals ón its account, and a receipt of the medals and the use by the corporation would be such a ratification.
It was, however, error to' exclude the evidence mentioned, and the judgment, appealed from should be reversed and a new trial ordered, with costs to the appellant .to abide the event.
O’Brien, P. J., McLaughlin, Clarke and Houghton, JJ., concurred. '
Judgment reversed, and new trial ordered,, with costs to appellant to abide event.