Lewis v. Clyde Steamship Co.Lewis v. Clyde Steamship Co.
EVIDENCE—Sufficiency of Evidence—Questions for Court—Questions for Jury.
Where evidence is so uncertain as to make it conjectural and speculative, it should not be submitted to the jury.
EVIDENCE—Sufficiency of Evidence—Salvage—Admiralty—Contracts.
In this action to recover salvage for saving a vessel the evidence is not sufficient to be submitted to the jury as to whether the defendant contracted to pay salvage.
CONTRACTS—Corporations—Ultra Vires—Defense—Pleadings.
In an action to recover salvage for saving a vessel, a defense that a contract is ultra vires is in the nature of a plea of confession and avoidance and must be specially pleaded.
CLARK, C. J., and DOUGLAS, J., dissenting.
This case was heard and determined at September term, 1902, of this court (131 N. C., 652). It is now before us upon a petition filed by the defendant to rehear.
The action was brought for the recovery by the plaintiff of $2,444.74 alleged to be due by the defendant company for money expended and services rendered in “caring for, floating and saving a steamship named ‘The City of Jacksonville‘,”
The defendant denied that it owned or operated the steamship “The City of Jacksonville“, on said date or at any other time. It denied the material averments of the complaint in regard to the alleged contract. The defendant asked for the removal of the case into the Circuit Court of the United States for the Eastern District of North Carolina. This motion was denied and upon defendant‘s appeal the action of the court below was affirmed. We have considered the contention of the defendant upon this point and think that it is correctly decided. We do not deem it necesary to set out the facts in regard to this phase of the case.
Upon the trial below the following issues were submitted:
1. Did the Clyde Steamship Co. own the steamer City of Jacksonville between September 1, 1899 and June 1, 1900? Ans. No.
2. Did the plaintiff contract with the defendant to render the services set out in the complaint? Ans. Yes.
3. In what sum is the defendant indebted to the plaintiff for such services if they were rendered? Ans. $2,000.
4. Was the contract between the plaintiff and defendant in writing? Ans. No.
Plaintiff testifies that he was 46 years old and had lived in Beaufort all of his life; that he was a sea-faring man for eight or ten years; that he had been a marine underwriter‘s agent since 1890, and that he was one at the time the steamship stranded; that he had had great experience with wrecks and he had been to a great many vessels; that he knew the Clyde Steamship Company; went to sea once in their ship; that its office is No. 5 Bowling Green, New York; that the City of Jacksonville wore the Clyde colors. There was a “6” on the flag fastened to the staff. The life preservers and buckets were branded “C. S. C.” and also all the bed clothes, sheets and blankets, counterpanes, tableware and four boats. That he found the “City of Jacksonville” on Whalebone Inlet beach, Carteret County. She was stranded, pipes were leaky, reef was cut away. That he telegraphed the underwriters and the Clyde Steamship Co. at New York. That a telegram was brought him from the Secretary of the Boston Board of Marine Underwriters, saying: “Twenty-five thousand dollar hull, value thirty thousand. Protect. Advise me.” He went to ship: sent Roberts and Mason there. That he went to New York to see Mr. Clyde; he saw Theodore Eger and Marshal Clyde. They told him to sit down and wait until Frank Clyde came. Frank Clyde is president of the Clyde line. He had a conversation with Marshal Clyde. Theodore Eger is general manager; talked with Eger, Marshal Clyde asked for a report of ship. He made the report and had a conversation about it. I said “I am going back to-night.” Marshal Clyde said he wanted me to see Uncle Frank and his men and asked me did I want any money. I told him no. They told me to come in at nine o‘clock next morning; went next morning. Eger was present. I was told to sit down and be comfortable. The in-
On crosss examination the plaintiff said he was the underwriter‘s agent; his first orders came from the Boston Board of Underwriters; he was employed by them. The ship did not go into the hands of underwriters but he made out a bill against the underwriters and owners and forwarded it to the Boston Board—that is the way it has to go. Eger was present at all conversations. He and Clyde both said that the contract for saving the vessel had been made with the Atlantic Wrecking Company. He had a contract with the Clyde Steamship Company. The writing was to W. P. Clyde &
Defendant then introduced the deposition of A. J. Wilkinson, Enrollment and License Clerk in the Custom House of U. S. in New York. He produced a deed duly enrolled from the DeBary Merchants’ Line of New York from the said “City of Jacksonville” to the DeBary Merchants’ Line of New York City. He also introduced certificate of enrollment of said steamship by Marshal Clyde of New York, president. Defendant again moved the court for judgment of non-suit, motion denied and defendant excepted.
CONNOR, J., after stating the case: In the view which we take of the case it is not necessary to set out the defendant‘s prayers for instruction. The court charged the jury that they must find by the greater weight of the evidence that the defendant company employed the plaintiff, engaged his services to look after this wreck in their interest; that the contract to bind the company must have been made with some
The only question thus presented for our consideration is whether there was from a legal standpoint any sufficient testimony to be submitted to the jury to sustain the plaintiff‘s allegation that the defendant company made a special contract with him for services to be rendered at its request in saving and floating the steamship. The finding of the jury upon the first issue eliminates from the controversy any right of the plaintiff to recover as upon a quantum meruit based upon an implied promise to pay for services rendered, of which it received the benefit. So far as the testimony shows, the defendant company had no interest in the said steamship, nor did it receive any benefit whatever from the services of the plaintiff in saving and floating her. The plaintiff averred that the “defendant owned and operated the ship,” but, in the issue submitted to the jury, the question is confined to the ownership. If the issue in regard to the ownership of the steamship by the defendant company had been answered in the affirmative, by reason whereof any benefit accrued to it from the services of the plaintiff it would have been liable for such services.
We are thus brought to the consideration of the single question whether there was any testimony fit to be submit-
There is probably no more delicate duty imposed upon the judiciary than the application of the well settled rules and principles which have been adopted, in which it is sought to define the line which distinguishes testimony which should be submitted to the jury and that which should not.
Gaston, J., in Cobb v. Fogalman, 23 N. C., 440, says: “Although the boundary between a defect of evidence and evidence confessedly slight be not easily drawn in practice, yet it cannot be doubted that what raises a possibility or conjecture of a fact never can amount to evidence of it.”
Rodman, J., in Wittkowsky v. Wasson, 71 N. C., 451, in discussing this question, quoting the language of the English courts, says: “It is not enough to say that there was some evidence; a scintilla of evidence would not justify the judge in leaving the case to the jury. There must be evidence from which they might reasonably and properly conclude that there was negligence,“—that being the fact to be estab-
Battle, J., in discussing and applying this principle in Sutton v. Maddrey, 47 N. C., 320, gives this illustration: “Suppose a plaintiff in a case was bound to show the existence of a fact within twenty years and the only testimony he offered was that of a witness who stated that it existed either nineteen or twenty-one years, and he could not remember which. Could the judge leave that isolated statement to the jury as testimony from which they were at liberty to find the issue in favor of the plaintiff? Certainly not.”
Faircloth, C. J., in Young v. Railroad, 116 N. C., 932, says: “Judges are no longer required to submit a case to the jury merely because some evidence has been introduced by the parties having the burden of proof, unless the evidence be of such a character as that it would warrant the jury to proceed in finding a verdict in favor of the party introducing such evidence.”
In State v. Satterfield, 121 N. C., 558, the same judge says: “The duty of drawing the line between a scintilla and evidence fit for the jury is sometimes difficult and delicate, but it is important, and the court must assume the responsibility. It is a preliminary question for the court who must find not that there is absolutely no evidence, but that the evidence is such as would justify a jury in proceeding to a verdict, such as will reasonably satisfy an impartial mind.”
See also Spruill v. Ins. Co., 120 N. C., 141; Bank v. School, &c., 121 N. C., 107.
Merrimon, J., in State v. Powell, 94 N. C., 968, says: “Legal evidence is not such as merely raises a suspicion, and leaves the matter in question to conjecture—as said above, it is such as in some just and reasonable view of it—taking all the facts, whether they be many or few, as will warrant a verdict of guilty,” citing Cobb v. Fogalman, 23 N. C., 440, and other authorities.
The difference between the province of the jury to pass upon the weight of the testimony when there is conflict, and to draw legal conclusions from testimony in respect to which there is no conflict, must be kept in mind. The question in this case is simply whether there is, admitting every word of the testimony to be true, any evidence upon which, as a matter of law, the jury could, under the instruction of the court, draw the conclusion that the plaintiff had shown an express contract to perform the services for and on behalf of the defendant corporation. There is no question in this case in regard to the weight of the testimony.
Applying this principle to the testimony in this case, we think that it was not sufficient to be submitted to the jury. A natural person becomes liable contractually when a proposition is made upon one side and accepted upon the other, or when a request is made for the performance of service and pursuant thereto the service is rendered. We are not now discussing the question of consideration, as no such question is presented in this case; nor are we discussing the question of ratification, for the same reason. It is elementary that a contract upon which a civil action may be founded must be the result of the concurrence or coming together of the minds of the contracting parties—a corporation, of course, speaking and acting through its authorized agents. The plaintiff says that his testimony establishes this condition. The “City
The plaintiff further said: “My first orders came from the Boston Board of Underwriters and owners. I forwarded bill to the Boston Board. Eger and Clyde both said that the contract of saving the vessel had been made with the Atlantic Wrecking Company. I have a contract with the Clyde Steamship Company. The writing was to W. P. Clyde & Co. I have written them. I can not say that all letters were so addressed. I did expect to get my pay from the underwriters. I brought suit in Philadelphia. In my complaint I think I said that the underwriters owed me. I signed the paper.” In this condition of the testimony we think it impossible, from a legal standpoint, for a jury reasonably to conclude that the plaintiff had shown a contract between the defendant company and himself.
The court instructed the jury that “A general manager would have such authority,” that is, authority to make this contract. The only testimony is that of the plaintiff, who says that Eger was the general manager. It is by no means clear that this instruction is correct.
We base our conclusion, however, upon the proposition that the testimony, measured by the rules laid down by this court, is not sufficient to be submitted to the jury to sustain the plaintiff‘s contention. In the opinion rendered by this court at the last term, the learned justice speaking for the majority of the court, said: “He (the plaintiff) further testified that the vessel in question wore the Clyde colors; that there was a large ‘C’ on the flag fastened to the flag staff; that the life preservers, etc., were all marked ‘C. S. C.’ He also stated that he had some correspondence with the Clyde Steamship Company, the defendant in this action. This, at least, was some evidence tending to prove that the plaintiff made a
With great deference for the opinion of the learned justice, we think that the testimony to which he refers, in the light of the finding of the jury upon the issue of ownership, should not have been considered by the jury as tending to prove that the plaintiff made a contract with the defendant. The plaintiff testified that “the writing was to W. T. Clyde & Co. I have written them. I can not say that all letters were so addressed.” It is true that he used the words “have a contract with the Clyde Steamship Co.” We are unable to see whether this language referred to the alleged contract in controversy or some other contract. If the former, it was a conclusion drawn by the plaintiff rather than the statement of a fact. The plaintiff himself appears to have regarded his employment as being by the Boston Board of Underwriters. He so expressly states. He says that he made out his account against them and brought suit in Philadelphia, and that he was sent there by the underwriters, all of which is inconsistent with the allegation that he was acting under a contract with the defendant company.
There is no evidence in the record as to when or what company employed the persons who performed the service of saving and floating the steamship, or who or what company took possession of her after she was floated. The plaintiff should undoubtedly be paid for his services, but we do not think that he produced sufficient testimony to be submitted to the jury that he made a contract with the defendant company to render the service. We can well understand that in the office of the defendant company in New York, in a conversation, in which the president of the defendant company, the president of the company owning the steamship and the superintendent of the defendant company all joined, there should be uncertainty as to which corporation was dealing
The defendant contended before us that the contract, if made, was ultra vires and not binding upon the corporation. This defense is not raised by, or set up in the answer. The majority of this court were of the opinion on the former hearing that this defense could only be made by way of a plea of confession and avoidance. The former Chief Justice and Mr. Justice Montgomery thought otherwise, as set forth in the dissenting opinion. The authorities sustain the view of the majority of the court. It is said in 5 Enc. Pl. and Pr., page 95: “In an action against a corporation, the plaintiff need not set out in his complaint or declaration the capacity of the corporation to make the contract sued on. When the defense of ultra vires is allowable to a corporation, the corporation must specially plead it.” In the text-books, the
The defendant will pursue such course in this respect as it may be advised.
Petition Allowed.
DOUGLAS, J., dissenting. Taking the opinion of the court in its regular order, my first objection is to the vague and indefinite manner in which a well established doctrine is therein stated. The possibility of bi-lateral construction is always a dangerous defect in the definition of a principle. In any event it tends to weaken the principle and may become the entering wedge in its eventual destruction. During the recent floods in the Mississippi River, I was much impressed at the published statement that five hundred men were at work on the Waterloo levee attempting to stop up what was originally only a crawfish hole. We may well learn a lesson from the laws of nature and hence I sometimes dissent more on account of what the opinion may lead to, than from what it actually decides.
The opinion says: “The only question thus presented for our consideration is whether there was any sufficient testimony to be submitted to the jury to sustain the plaintiff‘s allegation,” etc. I have italicized the word “sufficient” as also some other words quoted in this opinion in order to emphasize my objective point. The proposition would have been complete without this word, as a mere scintilla is not considered as evidence. Even as it stands, the word has been so often defined as meaning anything more than a scintilla that it might not be objectionable were it not for other expressions in the opinion that tend to misconstruction.
Further on the opinion says: “In this condition of the testimony we think it impossible, from a legal standpoint, for a jury reasonably to conclude that the plaintiff had shown
It is remarkable that in this celebrated case the difficulty with the court lay, not in determining the merits of the controversy, but in arriving at the true meaning and tendency of the opinion. Time has more than justified the dissent of the great jurist whose opinion stands as a monument to one who seems to have joined the instinct of the seer to the wisdom of the sage.
In Cobb v. Fogalman, 23 N. C., 440, cited by the court,
I am aware that the term “sufficient evidence” has been frequently used by this court, but I respectfully submit that taken in connection with the context of those opinions, or at least with contemporaneous opinions by the same judges, it clearly appears that the term means simply that the evidence must amount to something more than a mere scintilla. A few examples will suffice: In State v. Allen, 48 N. C., 258, in an able opinion delivered by Judge Pearson, the court says: “An error may have crept into our practice by reason of the judges not having attached due importance to the distinction between the condition of things in England, whence we are in the habit of taking our notions of law, and the condition of things here, where the trial by jury is protected both by the Constitution and by legislative enactment. A judge is not at liberty to express an opinion as to the sufficiency of the evidence. When there is a defect, or entire absence of evidence, it is his duty so to instruct the jury, but if there be any competent evidence, relevant and tending to prove the matter in issue, it is ‘the true office and province of the jury’ to pass upon it, although the evidence may be so slight that any one will exclaim ‘certainly no jury will find the fact upon such insufficient evidence;’ still the judge has no right to put his opinion in the way of the free action of the jury, even should
In State v. Cardwell, 44 N. C., 245, the court, by Battle, J., says: “Hence it is settled that if there be no testimony sufficient to establish a fact, it is the duty of the judge to say so; but if there be any testimony tending to prove the fact, he must leave its weight to be determined by the jury.” The italics were by the court.
In the case at bar the opinion of the court quotes the language of Chief Justice Faircloth in Young v. Railroad, 116 N. C., 932, but in the same case immediately after the words quoted by the court on page 937, come the following: “There is, or may be, in every case a preliminary question for the judge, not whether there is absolutely no evidence, but whether there is more than a scintilla of evidence upon which the jury can properly proceed to find a verdict for the party introducing it, upon whom the burden of proof is imposed.” The court also cites the oft-cited case of Spruill v. Ins. Co., 120 N. C., 141. It would seem that the opinion taken in its entirety is free from ambiguity, but in Cox v. Railroad, 123 N. C., 604, decided by the same court and written by the same judge, appears the following unequivocal enunciation of the principle: “It is well settled that if there is more than a mere scintilla of evidence tending to prove the plaintiff‘s contention, it must be submitted to the jury, who alone can pass upon the weight of the evidence.” See also Moore v. St. Ry., 128 N. C., 455; Cogdell v. Railroad, 129 N. C., 398; Dorsett v. M‘f‘g Co., 131 N. C., at p. 263, where
The former court affirming the court below held that there was evidence to go to the jury. The present court thinks otherwise, and bases its opinion upon the “uncertainty which surrounds the testimony.” This very uncertainty seems to me a conclusive reason why it should have been left to the jury. In Printing Co. v. Raleigh, 126 N. C., 516, Chief Justice Faircloth, speaking for the court, says: “The defendant‘s motion to dismiss the action was equivalent to a demurrer to the evidence, and the plaintiff‘s evidence will be taken as true, and taken in the most favorable light for him. An appellate court reviewing a judgment of non-suit will assume every fact proved, necessary to be proved, when the evidence tends to prove it.” See also Coley v. Railroad, 129 N. C., 407; 57 L. R. A., 817, and cases therein cited. In Railroad v. Lowell, 151 U. S., 209, 217, the court says: “In determining whether the plaintiff was so guilty of contributory negligence as to entitle the defendant to a verdict, we are bound to put upon the testimony the construction most favorable to him.” Can there be any doubt that under such a rule the case should have gone to the jury? The opinion of the court also seems to lay great stress upon the absence of “contractual words.” Such words are not required to make a contract binding and are rarely used in the ordinary affairs of life. If a person says to a merchant, “send me up a bag of flour” or “give me a pound of sugar,” can there be any doubt that he is bound for the price? If a corporation through its general manager says to a professional salvor,
CLARK, C. J., concurring in dissent. I concur in what is so clearly and forcibly said by Mr. Justice Douglas, and I regret that I can not add emphasis to the views stated by him and by Judge Bynum in Wittkowsky v. Wasson. “Juries are the sole and exclusive judges of the facts,” and judges have no right to intrude into that province. The maintenance of this principle of the law inviolate is guaranteed by the Constitution, and its preservation is as necessary now as at any time in the history of our race for the protection of the liberty and the property of the humblest citizen. The Act of 1796 (now
Because there is no power anywhere to review the action of an appellate court in holding that there was not sufficient evidence to justify a verdict which has been rendered, is an additional and the strongest reason why an appellate court should never so hold. So important a matter is this that the Court of Appeals is expressly forbidden by the Constitution of New York to set aside a verdict even on the ground that there is no evidence when the court below is unanimous that there was evidence, and our Superior Court must be unanimous, there being only one judge. The time-honored limitation in this State, within which an appellate court can set aside a verdict, is when “there is no evidence beyond a scintilla.”