Case Name: Meating, Appellant, vs. Tigerton Lumber Company, Respondent
Court: Wisconsin Supreme Court
Jurisdiction: Wisconsin
Decision Date: 1902-02-18
Citations: 113 Wis. 379
Docket Number: 
Parties: Meating, Appellant, vs. Tigerton Lumber Company, Respondent.
Judges: 
Reporter: Wisconsin Reports
Volume: 113
Pages: 379–391

Head Matter:
Meating, Appellant, vs. Tigerton Lumber Company, Respondent.
January 31 —
February 18, 1902.
Corporations: Contracts: Ultra vires: Authority of president: Evidence: Direction of verdict: Pleading: Payment: Presumptions: Limitation of actions.
1. In an action against a corporation to recover wages, it appeared' that S. was the president of the corporation, and that he hired plaintiff to work for it. Field, that these facts alone were not sufficient to establish defendant’s liability.
2. The president of a corporation ex officio has no power to contract. for it. When expressly authorized by the articles of incorporation or by the board of directors, or when authority arises from having assumed and exercised the power in the past, he may enter into such contracts as pertain to the regular course of the corporate business under his direction, and no more.
.5. Plaintiffs testimony tended to show that lie was employed by S., president of defendant corporation. No proof was offered that S. bad any authority to hire men, or sustained any relation to the corporation except as its, president. There was testimony tending to show that for two years prior to the alleged hiring, S., when at home, was the managing officer of defendant. Held, that the jury would he justified in finding S. had authority to make the contract with plaintiff, and it was error to direct a verdict for defendant.
•4. A complaint failing to allege that the amount due plaintiff has not been paid is not subject to the objection that it does not state a cause of action.
'5. There is no presumption of payment within the period of the statute of limitations.
■6. Payment is an affirmative defense and must he pleaded or evidence of the fact'will be excluded.
Appeal from a judgment of the circuit court for Shawano •county: Jonsr, Goodlaud, Circuit Judge.
Reversed.
The plaintiff brings this action to recover for services alleged to have been performed by him as cook for the defendant. He introduced testimony tending .to show that he was ■hired by H. Swanke, who was president of the defendant •corporation, to work for the corporation. Ho proof was offered by him that Swanke had any authority to hire men, or that he held any relation to.the corporation, except that he was president. The evidence of defendant tended to show that the logging camp- where plaintiff was employed was •operated by H. Swanke & Co., and not by defendant. Such •evidence also tended to prove that Swanke was the managing officer of the defendant for two years prior to the time plaintiff was hired. This fact was testified to by the witness Edwards, who was also an officer of defendant, who also said he had charge of defendant’s business when Swanke was absent. At the close of the testimony the defendant moved for a direction of a verdict on the ground that it was not shown that defendant was interested in the logging camp at which plaintiff worked, or that plaintiff was ever employed by defendant, or that Swanke was ever authorized to hire men to work for de- feudant. This motion was granted, and from a judgment for tbe defendant this appeal bas been taken.
F. G. Weed, for tbe appellant.
Eor tbe respondent there was a brief by Walrich, Dillett & Fberlein, and oral argument by G. F. Dillett.

Opinion:
jBaedeeN, J.
Tbe court evidently directed a verdict for defendant on tbe ground that there was nothing in tbe ease to show authority on tbe part of Swapke to contract on behalf of tbe defendant. He was president of tbe defendant corporation. Tbe plaintiff and one witness testify that be hired the-former to work for tbe defendant. These facts alone would! not be sufficient to establish liability. Tbe general rule is: that the president of a corporation ex officio bas no power to-contract for tbe corporation. 2 Cook, Stock, § 716. Such-authority may be expressly given by tbe articles of incorporation, or by tbe board of directors, or it may arise from bis having assumed and exercised tbe power in tbe past. Being invested with such authority within tbe lines mentioned, be-may enter into such contracts as pertain to tbe regular course-of tbe corporate business under bis direction, and no more. "When be goes outside of bis express or implied authority, his-acts will not be binding upon tbe corporation. Recent cases in which there is a discussion of this question are as follows : Ford v. Hill, 92 Wis. 188; McElroy v. Minn. P. H. Co. 96 Wis. 317; Northwestern F. Co. v. Lee, 102 Wis. 426; Calteaux v. Mueller, 102 Wis. 525; Hiawatha I. Co. v. John Strange P. Co. 106 Wis. 111; Heinze v. South Green Bay L. D. Co. 109 Wis. 99.
There was no attempt in this case to show that Swank'e bad express authority from tbe board of directors. There-was, however, testimony tending to show that for two years prior to tbe time of tbe contract in question be was tbe president and acting bead of tbe defendant corporation. Tbe inference is plainly justified from tbe testimony of Mr. Ed wards tbat be was its managing officer wben be was at borne. As sucb be would bave tbe power and authority of similar .agents under like circumstances. Roche v. Pennington, 90 Wis. 107. From tbe testimony before tbe court tbe jury would bave been justified in finding tbat be bad authority to make tbe contract sued upon; hence a direction of a verdict for defendant was erroneous.
Tbe objection tbat tbe complaint does not state a cause of .action because it is not alleged tbat tbe amount earned by plaintiff has not been paid is not tenable. There is no presumption of payment within tbe period of tbe statute of limitations. Payment is an affirmative defense, and must be set up in tbe answer, or evidence of tbe fact will be excluded.
By the Gourt. — Tbe judgment is reversed, and tbe cause is •remanded for a new trial.