A. J. Armstrong Co. v. Bloomberg
A. J. Armstrong Co. v. Bloomberg
Opinion of the Court
In this action the plaintiff seeks to recover $753.87 for goods sold and delivered to the defendant. The answer is a general denial and payment, and a further answer, in substance, that the plaintiff through its agent convenanted not to sue, and agreed to accept a pro rata share of the assets with the other creditors of the defendant. It was admitted by counsel for the defendant in open court that the goods were sold, that the prices were correct, and that the merchandise was delivered.
There was evidence tending to show that the defendant on January 29, 1932, entered into a trust agreement with Morris Goodman and Samuel P. Kaplan for the benefit of his creditors, a copy of which is annexed to the report; that thereafter a committee representing the creditors of the defendant, of which the plaintiff was one, was appointed; that at all meetings of the creditors the plaintiff was represented by its credit manager, George Cloke, who was a member of the board of directors of the plaintiff and who attended the meetings between the trustees and the creditors and took part in their deliberations; that thereafter a final agreement was entered into which was agreed to and signed by Cloke. The authority of Cloke was in issue, and on that question the deposition of Albert J. Armstrong, president and treasurer of the plaintiff, was introduced in evidence; a copy of the interrogatories propounded to him
Samuel P. Kaplan, one of the trustees, tQstified that he sent to the plaintiff on or about February 3, 1932, a covenant not to sue. This covenant was returned to him on February 4, 1932, with a letter, both signed in the name of A. J. Armstrong Company, Incorporated, by George Cloke, its credit manager. The letter and covenant are annexed to the report. Kaplan further testified that on or about May 3, 1932, a check for $301.55 representing a forty per cent first and final dividend was mailed to the plaintiff, and that the check had not been returned.
At the conclusion of the evidence the defendant filed four requests for rulings as follows: “1. Upon all the evidence the court must find for the defendant. 2. That there is sufficient evidence for the court to find as a matter of law that the signature of Cloke bound the plaintiff corporation to the compromise agreement. 3. If the court finds that Cloke was the fully authorized credit manager of the plaintiff at the time he signed the compromise agreement, then the plaintiff is bound by his act in assenting to said agreement. 4. The receipt of, and the holding of the check in payment of the dividend, is evidence of the corporation’s ratification of Cloke’s act and his assent in behalf of the corporation.” The trial judge denied the first request; respecting the others he notes: (2) “Not given, I do not find such authority”;. (3) “Not given, what is meant by ‘fully authorized’ is not clear. If it means he had power to assent, I do not so find”; (4) “Some evidence perhaps but not conclusive under all the circumstances.”
Albert J. Armstrong, the plaintiff’s president and treasurer, in answer to interrogatories stated in part as follows: George Cloke was a director and credit man of the plaintiff in January and February, 1932. The plaintiff was a creditor
The question presented is, in substance, whether the trial judge as matter of law was required to find for the defendant. It could not have been ruled as matter of law that the plaintiff’s credit manager as such had authority to bind the plaintiff. We are of opinion that upon the evidence the judge could have found for the defendant, but he was not compelled so to find. Whether the credit manager had authority to bind the plaintiff and whether, if he did not
The entry will be
Order dismissing report affirmed.
Reference
- Full Case Name
- A. J. Armstrong Company Incorporated v. Jacob Bloomberg
- Cited By
- 2 cases
- Status
- Published