Hosmer v. Beebe
Hosmer v. Beebe
Opinion of the Court
delivered the opinion of the court. The plaintiff sues the defendant as his endorser of a promissory note.
The defendant pleaded the general issue, denying any privity of contract between the plaintiff and him, in regard to said note; or that the plaintiff paid him any consideration for said note, but averring he obtained it improperly-farther averring that the plaintiff keeps a lumber yard, selling planks &c. on
There was a verdict and judgment for the plaintiff, and the defendant appealed.
The record shews, that the signature of the maker of the note was proved, and that of the endorser the defendant admitted; that the dewand of payment from the maker, and due notice to the defendant, was also admitted.
The defendant introduced a letter from Sutherland, the plaintiff’s joint owner in the mill, recommending to the defendant to sell to
Petersker deposed that in December last, the defendant came to the plaintiff’s store and brought the note, on which the present suit is instituted, and observed he had the business with Penn settled at last, and being asked whether he had an endorser, replied he had not, although one had been promised. The plaintiff answered he did not like to take the note without an endorser, believing Penn was not in good circumstances. The defendant Said this was true ; but the note was at a short date, and he did not believe Penn would fail before its maturity, at all events he would risk it, wherefore he endorsed the note. In the conversation which then took place, it was distinctly stated by the plaintiff, and admitted by defendant, that the latter was instructed not to sell the lumber for Penn’s note, without an endorser. The witness understood from the
Clap deposed that lumber merchants sell for cash or credit, according to circumstances. He believes the usual commision is 10 per cent on all kinds of lumber, which does not include any warranty.
The plaintiffs counsel contends, that on a suit by an endorsee, the consideration of the note cannot be gone into. This is certainly true, when the consideration is one, as to which there is no privity between him and the endorser: but in the present case it is the consideration of the endorsement which the defendant brings into view, and it is not clear that the same principle which authorises the maker to go into the consideration in a suit by the payce, does not apply between the latter and bis immediate endorsee, as the endorsement is as to them, quasi, a new note.
There is no evidence, however, that lumber commission merchants, are by usage authorised to sell on credit. Clap swears lumber
According to sutherland's letter, the defendant was not the seller of the lumber-but it was sawed on Penn’s own order, and sent to the defendant to deliver over to Penn ; this however applies to a part only of the lumber, though the most considerable, But Petersker’s testimony places the liability of the defendant? beyond any kind of doubt
If the sale above did not make him liable his giving new credit, by receiving a note, payable to himself, and for more than the lumber due the plaintif amounted to, make the debt his own.
We do not think that the plaintiff was bound to institute the suit in his and Sutherland’s name ; the defendant, by bis blank endorsement, authorised him to treat the note as he pleased, to pass it ever by mere delivery, or endorsement.
There is no evidence against the plaintiff, by which we can ascertain that the whole amount of the note exceeds the sum due by the defendant, the time the note was given, much less to ascertain the excess.
It is therefore ordered, adjudged and decreed, that the judgment of the district court be affirmed with costs.
Reference
- Full Case Name
- HOSMER v. BEEBE
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- Published