Sherman v. Christy
Sherman v. Christy
Opinion of the Court
To illustrate once more. On these notes, Griffe, the other partner, confessed a judgment, not against himself alone, but in the name and against the firm. Now, we have made a judicial determination upon the legal effect of this act, and we have said that it was only effectual against the party confessing. If, then, one partner does incur a separate liability in confessing a judgment on a firm note, by mere implication of law, why may not the other partner, by an express covenant to that effect, incur a similar responsibility for himself. If not, the writer of this opinion is unfortunate in not being able to distinguish the difference in principle between the two cases, except that he thinks the liability arising from the express contract is more reasonable, obvious and just than the one fixed upon the party from reason, analogy or mere implication of law.
We conclude, therefore, that it is competent for one partner to execute a firm note in such way as to render himself separately liable thereon; and when he has done so, as in the case at bar, and the other partner confesses a judgment on the same instrument, the contract is not carried into the judgment so confessed, so far as the defendant is concerned, but a separate action may be maintained thereon against him, being the party who signed the firm’s name to said note. If, however, the party executing such joint and several note, had confessed a judgment on the same, it would not follow that a separate suit could be maintained on said note against the other partner, for the reason it was not competent to fix upon him, without his consent, a separate liability. The case, in that aspect of it, would fall within the rule laid down in the cáse of North & Scott v. Madge & Co., supra. In support of the principle intended to be settled by this opinion, we refer to the case of Snow v. Howard, 35 Barb. S. C. R., 55, where the same question
Judgment below Reversed.
Dissenting Opinion
dissenting. — -I do not concur in the foregoing opinion. In my view of the case, the partnership signature binds but one individuality, and the language of the body of the note does not destroy the oneness of the obligor, or dissolve it into the elemental parts. Under our law, partnerships are quasi corporations, and may sue and be sued in their partnership name. If a corporation,
In this view the partner acted within his known authority, and the plaintiff’s good faith is not impugned. But by the construction given to the note by the majority, the partner is made to do an illegal act — certainly that which he had no authority to do; the plaintiff is .a party to the attempted wrong, thus by evincing his bad faith; the paradox of two persons bound by the same instrument and signature — one, jointly only, and the other jointly and severally — and the further act of converting one signature into two is effectuated. It is further, said, that if one partner may bind himself severally by confessing a judgment in the firm name, as he certainly may, that a fortiori he may do so, by signing the firm name to a note like the one in suit. There are, however, in my mind, two cogent reasons why such position is untenable: First. The partner, as such, has no authority to confess a judgment in the name of the firm, while he has authority to sign such name to the note in suit. Second. A judgment, when confessed properly by a firm, becomes, outside of any statutory regulation, a several liability of the members of the firm, and may be enforced against their separate and individual property. The case of Snow v. Howard, 5 Barb. S. C. R., 55, cited in the majority opinion, is the decision of an inferior court, and erroneously reviews and in effect overrules a former decision of the Supreme Court of that State, made in the case of Van Tine v. Crane et al., 1 Wendell, 524, which is in accordance with the well settled rules of the common and commercial law. I think the conclusion reached in this case by the majority, is an abandonment
I think the judgment should be
Affirmed.
Reference
- Full Case Name
- Sherman v. Christy and Easley v. Christy
- Status
- Published