Pac. Vinegar & Pickle Works v. Smith

Sidney M. Smith in his lifetime was the president of the plaintiff corporation. This action was brought against his estate to recover as damages the balance remaining due on certain promissory notes executed by the California Packing Company to plaintiff corporation, which were accepted and received by Sidney M. Smith as president of the corporation without authority so to do and against the express instructions of plaintiff’s' board of directors. Trial was had before a jury, whose verdict passed for plaintiff. Prom the judgment which followed and from the order denying the motion for a new trial defendant appeals.

Upon the appeal she first contends that the acts of Smith were ratified by plaintiff corporation. This ratification, it is argued, was established by the acts of plaintiff.

The notes made by the California Packing Company were indorsed by A. B. Patrick and presented nominally to plaintiff corporation, but in fact to its president Smith, by whom there was placed upon the notes the indorsement of the plaintiff corporation, after which some of these notes were discounted in the banks, some by the president himself, while others remained the property of the plaintiff…