Howe Machine Co. v. Hickox

Illinois Supreme Court
Howe Machine Co. v. Hickox, 106 Ill. 461 (Ill. 1883)
Scholfield

Howe Machine Co. v. Hickox

Opinion of the Court

Mr. Justice Scholfield

delivered the opinion of the Court:

Since the judgments sought to be set off are not between the same parties, it is clear there could be no set-off at law, and it devolves upon appellant, therefore, to show some equitable ground for being protected against the judgment of William C. Hickox. (Raleigh et al. v. Raleigh, 35 Ill. 512.) It is not enough, here, that appellant may have shown its rights were equal to those of I. B. Hickox; unless it has shown they were superior to any equitable claim which can be urged in his favor, appellant can not succeed. (Holbrook v. Receivers, 6 Paige, 231; Hannon v. Williams, (7 Stew.) 34 N. J. Eq. 255.) The allegation of the bill that I. B. Hickox had notice of the existence of appellant’s judgment when William C. Hickox assigned his interest in the contract to him, is not only unsustained by the proof, but the reverse was affirmatively proven. William C. Hickox expressly testified that I. B. Hickox had no such notice, and there was no other evidence- upon the question. The question of whether I. B. Hickox was a purchaser for value, in the sense entitling him to protection as against any equities in favor of appellant, is also put at rest by the evidence of William C. Hickox, no countervailing evidence having been given. He testified that the assignment was made pursuant to a previous agreement, whereby I. B. Hickox agreed to pay him (William C.) $1100 therefor, and-that of this amount $650 was paid before the assignment was made, and the balance was paid afterwards.

But was I. B. Hickox put upon notice of the equities of appellant by virtue of the terms of the contract assigned' to him ? At most that could but require him to know the terms of - that contract, and the rights of the parties thereunder. It could not require him to know the terms of a different contract with other parties, and the rights of the respective parties thereunder. As was observed in Greene v. Darling, 5 Mason, 214: “Where a chose in action is assigned, it may be admitted that the assignee takes it subject to all the equities existing between the original parties as to that very chose in action so assigned. But that is very different from admitting that he takes it subject to all equities subsisting between the parties as to other debts and transactions.”

It is quite true that the judgment obtained by appellant in the Supreme Court of New York was under a contract evidenced by a writing on the same piece of paper as that on which the contract assigned by William C. to I. B. Hickox, and under which the judgment obtained in the Cook circuit court was written; but it is not true that both judgments are under the same contract. In construing instruments of • this character the question is, what interest was intended to be vested in the respective parties ? And hence, “where the language of the covenant is capable of being so construed, it shall be taken to be joint or several, according to the interest of the covenantees.” (Chitty on Contracts, (11th Am. ed.) 1343.) “The result of the cases, ” observed Lord Denman, Ch. J., in Foley v. Addenbrook, 4 Ad. & El. (N. S.) 197, (45 Eng. C. L. 197,) “appears to be, that where the legal interest and cause of action of the covenantees are several, they should sue separately, though the covenant be in joint terms.” See note v, Chitty on Contracts, ubi supra. See, also, to like effect, 1 William’s Saunders, 155; 1 Chitty’s Pleading, *11, 10.

The contract under which the judgment in favor of appellant in the Supreme Court of New York was obtained, was with William C. Hickox and Joel M. Hickox, and it related entirely “to the closing of the business now existing between the Howe Machine Company, * * * and W. C. Hickox and J. M. Hickox. ” But the contract assigned by William C. to I. B. Hickox, and under which the judgment in the Cook circuit court was obtained, had nothing to do with the “closing of the business between the Howe Machine Company and W. C. and J. M. Hickox, ” but related exclusively to the employment of W. C. Hickox by the Howe Machine Company to sell machines within a designated territory, and during a stipulated time. There is not the slightest pretense for contending that J. M. Hickox was in anywise responsible for the conduct of W. C. Hickox in this regard, or entitled to participate in the profits he might thereby make. Two separate and wholly distinct subject matters were agreed to,— one, the closing up of an existing business, and the other, the carrying oil .of a new business. Had the agreements been written on separate papers, and separately signed, their disconnection would have been obvious to every intelligent apprehension. And yet the fact they are written on one piece of paper can make no difference.- If, in the minds of the parties, they are separate and distinct in the one case,— and this is apparent from the language employed,—they must be so in the other. The only real difficulty is in arriv,ing at the intention of the parties.

We see no cause to disturb the decree below. The case is not brought within any of the exceptions laid down in Hughes v. Trahern, Admx. 64 Ill. 48. See, also, Ullman v. Kline et al. 87 Ill. 268.

Decree affirmed.

Reference

Full Case Name
The Howe Machine Company v. William G. Hickox
Cited By
4 cases
Status
Published
Syllabus
1. Set-off—of judgments between different parties—whether set off at law, or only in equity. Judgments not between the same parties can not be set off at law, and. it devolves upon the party seeking to set off a judgment in his favor against A and B, as to a judgment by A for the use of 0, against such party complainant, to §how some equitable ground for being protected against the judgment so held by A. It is not enough that complainant may have shown his rights are equal to those of C, the beneficial plaintiff in that judgment. Unless the complainant can show they were superior to any equitable claim which could be urged in favor of the beneficial plaintiff, he can not succeed. 2. Assignee of contract—whether chargeable with notice of equities between his assignor and the other party to the contract. A contract was made between a machine company for the closing up of the business between it and A and B, in which the company agreed to pay A two dollars for each sewing machine sold by him, or upon a lease in certain territory, provided A should devote his time and best energies to the sale of such-machines, and A assigned and sold to 0 all his rights and demands under the contract. It was held, on a bill by the machine company to have a judgment recovered by A for the use of 0 set off against a judgment recovered by the company against A and B for a larger sum in a different State, that 0, the assignee of A, was only required to know the terms of the contract of A assigned to him, and the rights of the parties thereunder, but was not bound to take notice of the equities of the company against A and B, or of the judgment against them, thus treating the agreement between the company and A and B as constituting two distinct contracts, one with A and B, and the other with A. 3. Contract—whether joint or several. Where the language of a contract is capable of being so construed, it will be taken to be joint or several, according to the interest of the covenantees; and when the legal interest and cause of action of the covenantees are several, they should sue separately, though the covenant be in joint terms. 4. Same—where two in one writing. A machine company entered into a written agreement with A and B, which provided for the closing up of an existing business arrangement between the company and A and B, and the carrying on of a new business by A for the company. It was held, that there were two distinct contracts, the one between the company and both A and B, and the other with A, as much so as if written on separate papers, and that the one had no connection with the other, and that A might assign his demands on the company under his contract, unaffected by the equities of the company against A and B, when the assignee had no notice in fact of such equities.