Princeton & Kingston Turnpike Co. v. Gulick
Princeton & Kingston Turnpike Co. v. Gulick
Concurring Opinion
I concur with Mr. Justice Ford in discharging the rule to shew cause in this case, but I see no reason to change the opinion expressed in my charge to the jury, as to the continued liability of the defendants upon a special guaranty, notwithstanding a dissolution of the partnership. It is true, that a party cannot after notice of a dissolution, deal with one or more of the late partners, so as to bind the partnership; but that is a very different case from the one before the Court. The plaintiffs’ right of recovery does not depend on the contract made after the dissolution. Nor, is their claim founded upon a continued dealing with one of the partners, after they had dissolved partnership ; nor yet, upon a new credit given to them after that event. But the plaintiffs’ right of recovery is founded upon a eontinu'm// guaranty, entered into by the partnership to pay the tolls of a
If however the charge was wrong in this respect, yet it so manifestly appears upon the whole case, that the jury have found just such a verdict as they ought to have done, if no such charge had been delivered, that I am clearly of opinion, a new trial ought to be refused.
This action was brought to recover certain tolls, to a large amount, claimed by the plaintiffs, of the defendants, as surviving partners of the late firm of John Gulick and Sons. The tolls were originally charged against that firm, by the order and direction of John Gulick, the father, now deceased. The tolls accrued from 1817 to 1826, inclusive for the passage on the plaintiffs’ road, by sundry stages.. But by the interposition of a plea of the .statute of limitations, they were barred of any recovery, except for about the two last years. These stages were owned by divers persons, including the defendants. From 1817 to 1821, inclusive; it seems not to be disputed but that the defendants and-their deceased partners as a firm of copartnership, were interested therein, though not the entire owners of the line or lines. Subsequent to that period, it is denied by the defendants, that they were thus interested; though some, if not all the individuals composing the firm, were interested, (but, as they say,) on
On the argument of the cause here, it was urged, that the action was not sustained, by the evidence. That the declaration contained only general counts, whereas, the evidence would only warrant a verdict, on a special count, the undertaking being collateral, or a guaranty for the performance of a third party, the general company of stage owners. But this is a mistake of the fact. It was, if any thing, a direct and original undertaking. It was the request and direction of J. Gulick and tíons, that these stages, should be permitted to pass the gates : and their promise to pay the tolls thereupon. Whether they owned the whole, or only a part thereof, could make no difference: nor even if they had no interest therein. When any person directs and requests horses and carriages to travel a turnpike road, at his expense, and on his responsibility, it surely cannot be necessary lor the proprietors of the road, to enquire who owns them ; a general and absolute indebtedness arises; and a general and •absolute assumpsit is implied in law, which may be the subject of an action equally general.
Equally untenable, I esteem another objection urged, that this was a matter in which one partner could not bind his associates. Part of the business in which the partnership was engaged, was the running of stages. Incident to this, was the payment of the toils in question; a necessary payment and for the advantage of the firm. And it can make no difference, that other persons were interested therein. It was the very business in which the firm was engaged; running stages in company with other persons. And whatever became necessary to be done in pursuit thereof, might be done by one of the firm, as effectually as if all were consulted and concerned.
But if I am wrong in my view of the charge, or the fact on
I am therefore, of opinion, on the whole case, that the rule to show cause, &c. must be discharged, with costs.
Mule discharged.
Cited in Joslin v. N. J. Car Spring Co., 7 Vr. 147.
Opinion of the Court
This was an action of indebitatus assumpsit, to recover toll owing to the Turnpike Company, for the passing of the Exchange line of stages through their gate in the years 1825 and 1826; brought against John, Jacob and Isaac Gulick, as surviving partners of John Gulick and sons, in consideration of the Turnpike Company having permitted the line to pass through the gate, at the request of said firm. It appears that the firm had carried on such a variety of business, in trading, staging, milling and farming, as to have acquired the reputation of being almost a universal partnership: but still it had no concern, as a firm, in the Exchange line of stages, though each one of the members had a separate individual interest therein, in connection with many other part owners, scattered along between New York and Philadelphia, but not generally known; and the gate keeper had strict orders from the Turnpike Company, to close the gate against every line of stages, until some responsible person, or persons should undertake for the payment of the toll. Under these circumstances, John Gulick, senr., requested the gate keeper to let the Exchange line of stages pass through the gate, and to charge the toll for it to John Gulick and Sons. In this manner the line passed through the gate in 1825 and 1826, with the knowledge of the members of the firm, and the jury found for the Turnpike Company, to the amount of the toll.
The defendants now move for a new trial, upon various grounds — that the firm of John Gulick and Sons, was actually dissolved prior to the year 1825, and was incapable of any legal act. That the contract was not within the scope of the partnership concern, and therefore that the act of one member of the firm, was not binding on the others. That the undertaking was void by the statute of frauds; and that being in its nature a spe
1. It appears to have been sufficiently proved at the trial, that the partnership of John Gulick and Sons, was certainly dissolved, at least as to most of their general concerns, prior to the year 1825, by the agreement of all the members of the firm; and in consequence of it, that the leading branches of their former business had been exclusively taken, to be conducted by new and distinct associations: and that this dissolution, though the private act of the members, and never published in a formal manner, appears to have been well known, and that to several persons who testified to their knowledge of the fact. But it did not appear to have been known to other persons; and in particular it was unknown both to the treasurer and to the gate-keeper of the Turnpike Company, as they distinctly testified at the trial, and there was no contrary evidence, to discredit their testimony on this point. Now it is an established rule, that if a partnership once existed, it will be considered in law, notwithstanding an aiu cement among its members for a dissolution, to be still in being and continuance, with respect to all persons who act under a bona fide belief of its continuance, having no notice to the contrary. Lord Mansfield said, in the case of Fox v. Hanbury, Cowp. 449, “If partners dissolve their partnership, they who deal with either, without notice of such dissolution, have a right against both;” and in 3 Stark. Evid. 1078, “ It is sufficient if the plaintiff prove a partnership anterior to the contract, for when the partnership is once established, a continuance of it, is to be presumed, until notice of a dissolution is given to the plaintiff.” Now there was no evidence direct or circumstantial, that the Turnpike Company had any notice of the dissolution of this firm ; on the contrary there was positive proof, by the oaths of the treasurer and gate-keeper, that they ne%mr heard of the fact of a dissolution, though they lived in the neighborhood of all the members. Indeed there were some leading circumstances to induce a belief, that though the partnership curtailed its business by renouncing some of its former pursuits to other associations, yet that the members intended, for some purposes, that the old firm should still continue to exist. And the jury had circumstan
2. It is next insisted, that a contract to pay toll for a line of stages belonging to strangers, did not come within the scope of their partnership business, and one partner cannot bind the rest, for matters extraneous to the concern. But how are strangers to know what matters are and what are not within the scope of private articles of partnership ? Nothing prevented the members, if they were so inclined, from making the payment of this toll, a partnership business, and it is a settled rule of law, t-hat the acts and conduct of the members of a firm, are good evidence in favor of strangers, who are not cognizant of the private objects of a partnership, and are to be guided by external indications 3 Stark. Evid. 1066. Now the father directed the account to be kept against John Gulick and Sons; a conclusive indication that he deemed it to be within the scope of the partnership. Then the Sons knew it was so kept without objecting to it; nay suffered the money of tlx- Turnpike Company to flow for two years into the hands of John Gulick and Sons, and carried it in against the Exchange Line, as a valid account; and these external indications are sufficient in law, as it respects strangers, to preclude them from saying that it was not within the scope of their partnership. Any thing was within it, that they consented to make
3. It is next insisted that this being a special agreement, the action ought to be founded upon it; that the plaintiffs cannot waive it, and sue on an implied assumpsit. But why not? If one purchase a yard of cloth, and promise to pay the price, this promise is just what the law implies, and an action lies either on the promise expressed or the promise implied ; for they are not variant; and a performance of either, performs the other. But where the express promise differs from the implied one, it must necessarily be set out in order to prove and enforce it. If a person gets a carriage let through a turnpike gate at his request, the law implies a promise that he will pay the toll, whether he is the actual owner of the carriage or not, the same as if he got it passed over a toll bridge or set over a ferry; and as the law implies a promise, it affords a remedy upon it.
4. It is next argued that this contract is void under the statute of frauds, being a promise, not to pay a debt of John Gulick and Sons, who as a firm had no interest in the stage; but to pay a debt of the proprietors of the Exchange Line,,who are third persons, and as it was not put in writing and signed by the firm, it cannot be enforced against them. Now there is no doubt but that every time. the stage passed through the gate, a debt was incurred by some body ; but that it was not incurred by the unknown proprietors of the line is evident, for the Turnpike Company gave a refusal in writing to trust them, and the law will never imply a promise contrary to the agreement of the parties; consequently the proprietors owed no debt to the Turnpike Company, nor can it maintain an action against them. Therefore the undertaking, of the firm was not to pay the debt of any other persons ; it is an original debt of their own. He who passes a carriage through a gate, at Ms request, no matter whether he is the actual owner, hirer or borrower, has the patronage of it at the time, and becomes the owner so far as respects the gate-keeper. So that this promise cannot possibly be brought within the statute of frauds.
5. It is finally insisted that the Chief Justice misdirected the jury. He first put the question to them fairly, whether there was a dissolution of the firm and notice thereof to the plaintiffs; and then told them that the guaranty would stand good, not
Reference
- Full Case Name
- THE PRINCETON AND KINGSTON TURNPIKE COMPANY v. JOHN GULICK AND AL. SURVIVORS OF JOHN GULICK AND SONS
- Status
- Published