Toole v. Durand
Toole v. Durand
Opinion of the Court
The facts which led to this controversy are substantially : That John Durand, of Bordeaux, who is also a partner in the house of Durand & Co. of New York, had consigned to Barthet & Co. of this city, for sale, at different times, a quantity of brandy and wines, and that the plaintiffs, Toole & Barriere, became the sureties of the consignees on the Custom-House bonds given for the duties. That Durand & Co. of New York finding that Barthet & Co. were embarrassed, sent their agent, Dupuy, to withdraw from their hands what might remain unsold of the consignments. The brandy and wines were consequently taken
On the return of Dupuy to New York, Durand <fc Co. wrote to the plaintiffs a letter dated August 9th, 1839, in which they say, that Dupuy had furnished them a copy of their correspondence of the 6th of July. After stating the amount already paid by Toole & Barriere, to wit, $3882 18, and the bonds yet to be paid, and stating a balance due to them of $4788 08, they add : “ To guaranty you against any loss which you might sustain in consequence of your endorsements for that amount, he handed over to you as collateral security the following notes of Barthet & Co., (detailing them.) amounting to $4696 10, of which we pray you to make collection as they fall due, and remain possessors of those sums until the house of Barthet & Co. shall have discharged the above stated balance of $4738 08; approving the arrangements (les dispositions) which Mr. Dupuy entered into with you in that view (a cet egard,) and in order to guaran
The notes of Barthet &. Co. not having been paid, and the plaintiffs alleging that they had been compelled to pay the remaining bonds, the present action was brought against John Du-rand and John Durand & Co., to recover the amount of their advances. The plaintiffs found their right to recover not only upon the guaranty given by the New York house, but upon the fact, that they became sureties on the Custom House bonds for the benefit of the consignor, John Durand of Bordeaux, and that in substance they acted from the beginning as his negotiorum gestores. They allege, that notwithstanding their diligence, they have recovered nothing from Barthet & Co.; that they had obtained a judgment against them ; and that the execution issued thereon had been returned, no property found.
The case was tried by a jury who found a verdict in favor of the plaintiffs for the amount claimed by them, which, after an ineffectual effort to obtain a new trial on the part of the defendants, was followed by a 'judgment, from which the latter have appealed.
Two principal questions have been discussed in this court. First, whether the letters of Dupuy and of Durand & Co., amount to a guaranty in favor of the plaintiffs, and a promise to reimburse them what they had paid, or might afterwards pay as sureties on the bonds. Second, whether, that guaranty was upon the condition that the plaintiffs would use due diligence in collecting the notes of Barthet & Co., and whether they have lost their right to recover by their want of diligence.
I. The letter of Dupuy contains an unequivocal promise to obtain from the house in New York a guaranty to Toole & Barriere. The consideration for this promise was, that the latter abstained from seizing the goods for the duties upon which the bonds had
We cannot suppose that any of the parties considered the notes of Barthet & Co., which were placed in the hands of the plaintiffs for collection, as forming their only security. At most they were collateral, thereby implying a principal obligation to which they were accessory. Toole & Barriere became the agents of •the defendants to collect, and were authorized to retain the amount, when collected, in order to reimburse themselves.
II. Although the guaranty thus given was not, strictly speaking, upon the condition that the plaintiffs should collect the notes of Barthet & Co., yet there is no doubt they undertook as mandataries to collect them, and are responsible as such for any loss which the defendants may have sustained in consequence of their fault or neglect. We are, therefore, to inquire, what diligence was used, and whether the plaintiffs have rendered themselves liable for the amount of those notes, as if this were a direct action against them. It appears that the first note for $1700,
But it is argued, that Barthet & Co. were at the same time indebted to Toole & Barriere, and that the latter received in payment a large amount of bank stock and several city lots. It appears, however, that those transactions took place before the arrangement with Dupuy, and the giving of the guaranty. At that time Toole & Barriere had a right to look to the merchandize, to reimburse to them the duties they had paid as sureties on the bond; and, according to the late bankrupt law, were entitled to a priority of payment out of the whole property of the principals in the bond, in case of their failure.
It is in evidence that repeated efforts were made to obtain payment of the notes before bringing suit; and that, although Barthet was largely indebted to Toole & Barriere, they collected nothing. No instructions were given to bring suit; and it is not shown that any damage resulted to the defendants from the delay, in which they seem to have acquiesced, by not instructing the plaintiffs to bring suit sooner.
This view of the case is wholly independent of any original liability of Durand or Durand & Co. to refund to the plaintiffs what they may have paid as sureties of Barthet & Co., the consignees ; and places their liability on the guaranty promised by Dupuy, and ratified by the defendants. The authorities cited by the defendants’ counsel would be strictly applicable, if the plaintiff sought to recover of the owner, independently of any such engagement. The consideration of the promise to indemnify the plaintiffs was, that they permitted the defendants to withdraw $6000 worth of the goods on which they had paid the duties, and which, so far as the government and the sureties were concerned, were to be considered as the property of the consignees.
We are of opinion, that interest at six per cent was properly allowed, according to the laws of the United States ; and, upon the whole, the question of diligence having been submitted to the jury, we are not satisfied that it becomes our duty to disturb their verdict.
Judgment affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.