Armour & Co. v. R. Rosenberg & Sons Co.

This is an action brought upon two guaranty contracts executed by defendant corporation for the payment of certain merchandise sold and delivered by plaintiff corporation to one W. Y. Lawton, an individual doing business under the fictitious name of “American Packing Company.” Judgment was rendered in favor of defendant on the ground that the manager of defendant corporation had no authority to execute the guaranties in question.

Briefly stated, the facts are as follows: Plaintiff is a manufacturing and trading corporation dealing in food products. Defendant is a business corporation dealing, among other things, in new and second-hand bottles. American Packing Company originally was a corporation engaged in manufacturing, and in the conduct of its business prepared and put' up in bottles salad oil which it sold to the trade. It was adjudicated bankrupt in March, 1913. W. Y. Lawton was one of its stockholders, and after the bankruptcy proceedings were closed he began and continued in the same line of business on his personal account. Defendant was one of the creditors in bankruptcy of the American Packing Company, having a claim for the sum of $875.58. ‘ No dividend was received…