President of Paterson Bank v. Butler
President of Paterson Bank v. Butler
Opinion of the Court
delivered the opinion of the coart.
This action was brought by the plaintiffs as endorsees against the defendant as endorser of two promissory notes drawn by one Thomas Parker. The question is, whether sufficient notice of non-payment of the notes was given by
The first of those notes became due on the 15th August, 1828, when payment was demanded of the cashier of the plaintiffs. Two notices of non-payment and protest were made out. One of them, directed to the defendant, was on the same day delivered in Paterson, by the clerk of the notary to a Mr. Butler, with whom the clerk was previously unacquainted, who informed the clerk it was his brother to whom the notice was directed, that he was going home and should see his brother, and would give him the notice as soon as it could be sent by mail. It is manifest that the delivery thus made cannot stand for personal service on the endorser, nor excuse the plaintiffs from farther proof that it actually camo in due season to his hands. Indeed the plaintiffs’ counsel do not insist that this delivery is sufficient proof of service. The other notice was directed to the defendant at Dashville, Hew Jersey, and was put into the post-office *at Paterson, in time for the first mail. But the defendant resided at Dashville, Ulster county, Hew York; and although the clerk of the notary was ignorant of his residence, and was informed by the brothpr, somewhat vaguely, that he lived a few miles just over there, at Dashvilie, but he did not know in what county, and the clerk did not ask in what state, yet' the cashier was fully apprised of his residence, had mentioned it to the directors at the time the note was discounted, and had received instructions from the defendant to direct to him at Dashville Falls, Ulster county, Hew York. The plaintiffs, therefore, know the residence of the defendant, and the clerk of the notary would have been correctly informed had he inquired of the cashier, when he demanded payment of the note. Sending a letter by the mail in due season, properly directed, was held by all the court to be sufficient in Ferris v. Saxton,
A notice was produced on the trial by the counsel of the defendant, directed to T. 0. Butler, junior, esq., Dashville, New Jersey, and post-marked New York, August 18th. Thomas 0. Butler testified that from the post-mark on the back of the notice he had no doubt it'was marked in New York on the 18th of August, and went directly to his son, the defendant, at Dashville ; *and that it was marked, free, as he supposed, because the postmaster in New York knew that the defendant was postmaster at Dashville; but he did not know that his son actually received it, or that it went to Dashville, in the state of New York; and that the first time that he saw the notice was last March, 1820, at that place [Hackensack] in the hands of the defendant’s attorney. Except that the notice was in the hands of the attorney in March, all the rest of this verbal testimony is mere inference drawn from the appearance of the written document.
But the plaintiff’s counsel insist, as this notice is proved to have been in the hands of the defendant about seven-months after the note became due, the conclusion is, that the defendant received it by due course of mail, and if otherwise received, he might and ought to have shown in-what manner he became possessed of it. I am not aware-that the law raises any such presumption except where the-letter has been properly directed — and to require the-defendant to show at what time, or in what manner, the letter came to his hands, when so misdirected, is to change the relative duties of the parties, to relieve the endorsee from the strict proof required of him, and to call on the endorser, who, it is to be recollected, becomes responsible only on the performance of the condition on which his obligation rests, to perform what would in general be impracticable. The argument of the plaintiff’s counsel appears tome abundantly repelled by the remarks of the court in the-case of Ferris v. Saxton. C. J. Kirkpatrick said, “ The-notice required by the law is an actual real notice, such a one as will apprize a mam of his situation, his liability, his danger, such a one as will enable him to look after -his-effects and secure his property. Every thing short of this-is a'mere mockery.” Southard, J. said, “ It is an essential part of the contract and designed for his benefit, as it is presumed many means of obtaining payment-through the assistance of friends, or otherwise, may remain to him.”’ And again, “ The notice is of the essence of the contract. It creates the liability to pay. It ought not to rest upon-presumption and inference. Legal and sufficient evidence of its existence ought to be given, or the court should not-permit the jury to guess 'and presume away a party’s-rights.”
The second note became due on the 17th September, 1828. *The notice was addressed on the inside to Thos. C. Butler, jun., and on the outside to Mr. Thos. C. Butler, Hew York, whither it was sent by the first mail. Thos. C. Butler, called by the plaintiffs,,testified, among other things, that he received it by due course of mail; noticed that it was directed on the inside to his son ; but withheld it and did not send it to his son, because he knew it was not a legal notice, and in order that his son might not be fixed with the payment. He afterwards, but at what time he could not say, communicated the contents to his son.
The plaintiffs’ counsel insists that under the circumstances of this case, Thomas C. Butler should be considered as agent of the defendant for the purpose of receiving and forwarding letters and notices, and that the notice was sufficient to charge the defendant.
Thos. 0. Butler testified that it was his custom frequently to receive letters and other things for his son, and felt-bound, as a matter of course, to forward any letters or notices which he received for his son; but in this case he did not, as he knew it would fix his son with the payment of the note. There was no particular agreement between him and his son, as to his receiving and forwarding letters, but he did it as a matter of course.
How if the defendant had agreed with the hank that notices for him should bo left with his father, or if ho had given general directions that letters addressed to him should be sent there, or if there had been even an agreement between the father and son, that the former should receive and forward letters and notices intended for the latter, there might have been some room to raise a question as to the propriety of the notice in the present instance; but the whole appears to have been a matter of courtesy, and could not therefore justify, in any wise, the endorsee in a departure from the ordinary rules of service.
*Upon this testimony it is to be remarked that it was a specific direction to a particular agent — -not communicated to the plaintiffs or the notary — and not a general direction of which others had a legal right to avail themselves ; moreover it ceased with that agent several months before these notes became due; for the next, his successor, Ackerman, testified that he sent the goods to Butler and Brothers, New York, but the letters which were intended for the defendant were addressed to him at Dashville falls, Ulster county, New York.
There seems, then, to be nothing in the testimony shewing a special agreement, or genei’al custom, which will sustain the sending of a notice addressed to the father in New York.
But it appears to me this argument of the defendant’s counsel, as to the sufficiency of the notice, is conclusively repelled by the testimony of Mr. Parsons, the cashier of the bank — that in April, 1828, until which time he understood the defendant resided in Bergen county, he received a letter from the defendant “ requiring him to direct to him at Dashville falls, Ulster county, New York;” and when the note was discounted, the directors were informed by the cashier, of Butler’s place of residence. When the residence of the endorser was known, and he had actually given orders as to the mode of directing his letters, any deviation therefrom, or from the ordinary course of transmission to the place of his residence, was assumed at the risk of the holders of the note. The mode of transmission adopted in this case is in
The notice with respect to the second note was insufficient. Upon the whole I am of opinion the judgment should be affirmed.
Judgment affirmed.
Reference
- Full Case Name
- The President, Directors and Company of the Paterson Bank v. Thomas C. Butler, Jr.
- Status
- Published