Farmers & Mechanics Bank v. Green
Farmers & Mechanics Bank v. Green
Opinion of the Court
This was an action brought by the bank against the defendant, as one of the drawers of a promissory note, of which the following is a copy:
$409.21. Greensburgh, N. J., June 27, 1860.
Five months after date, we promise to pay to the order of Green, Brother & Cooper, four hundred and nine dollars, without defalcation. Value received.
Payable at Philadelphia, at 118 Walnut st.
Enoch W. Green & Co.
Endorsed Green, Brother & Cooper.
It was proved, at the trial, that this note was discounted by the plaintiff in the regular course of its business.
The defence set up was, that at the date of the note there was not, and had not been for several years, such a firm as that of Enoch W. Green & Co.; that the note was made by Philip Green, who drew it, and signed thereto the name of Enoch W. Green & Co. without the knowledge or consent of .the defendant, procured the note to be discounted, and appropriated the proceeds to his own use. It appeared in evidence that Philip Green and Enoch W. Green were brothers, .and that Philip died the 29th of October, 1860.
I think the jury were warranted by the evidence in finding the following facts:
1st. That at the giving of the note there was no such firm in existence as Enoch W. Green & Co.
2d. That the note in question never was drawn or signed by Enoch W. Green, or with his knowledge or procurement.
3d. That the note was made and signed by Philip Green, for his own use, and so appropriated without the knowledge or consent of the defendant.
4th. That if any such firm as Enoch W. Green & Co. ever existed, it was dissolved so early as 1849.
5th. That no business had ever been done between the plaintiffs and the firm of Enoch W. Green & Co, prior to the dissolution as aforesaid.
No notice of the dissolution was given. But the jury may
It is a principle of law, that if a retiring partner gives no notice, then a customer of the firm accustomed to trade with the firm on the responsibility of all the partners, not knowing of the retirement, may hold such retiring partner for a debt contracted with the firm after the retirement. But a new customer generally cannot. 1 Par. on Contracts 145. This raises-two questions.
1st. Had the jury a legal right to conclude, from the evidence, that the plaintiff had ever dealt with the old firm of E. W. Green & Co. prior to the dissolution ?
2d. If the plaintiff had not so dealt, is there anything in this case to take it outside of the general rule ?
This first leads to an examination of the evidence upon the following questions:
1st. What is the evidence upon the question, whether there was any such partnership at all as that of E. W. Green & Co. ?
2d. If there was, when did it commence and when did it end ?
3d. When did the plaintiff commence to deal as if with the firm of E. W. Green & Co. ?
4th. What circumstances are there, if any, which would take this case out of the general rule of law, which prohibits a new customer from holding a firm responsible for an act of one of the partners, after dissolution without notice ?
First, as to the proof that there ever was such a partnership at all as that of E. W. Green & Co.
The only act ever proved to have been done by E. W. Green from which a partnership could be inferred, as against him, is that, in 1843, he wrote the name Enoch W. Green & Co. in the signature book of the Trenton Banking Company.
There is one other fact, not an act, so far as the proof goes, of E. W. Green, that a sign lettered Enoch W. Green & Co. was put upon a bridge belonging to Philip Green for some time. But the evidence is, that he protested against its being so up. He always protested he was no' partner. Philip always averred he was no partner. Philip did all the business, and took all the proceeds. There is not the slightest proof that Enoch ever received or claimed a cent from the firm in any shape whatever. There is no evidence that the plaintiff ever knew of this signature in the bank. This alleged store was a small shanty in the country, on the canal near Trenton, having in it from $100 to $250 worth of the two great staples in trade, rum and tobacco, while the store of Green, Brother & Cooper was a large concern, at 118 Walnut street, Philadelphia, and the plaintiff one of the largest banks in the city of Philadelphia.
Can we say that the jury could not legally conclude, from these facts, that there never had been any such partnership at all as that of E. W. Green & Co. ? Might not the jury legally conclude, that inasmuch as the defendant received no part of the profits, and meddled in no way with the concern, that the signature in the bank was only to give his brother Philip credit in that particular bank, which would make the defendant liable in that bank as a partner ; but which other banks, acting without any knowledge of such signature, would have no right to use as proof of partnership as between him and them? And as regards the sign, there is no evidence that it was put up by Enoch, or even assented to by him; it was not put on his building, or on a store containing any goods he claimed to be interested in, but put upon Philip’s building, and in the goods in which he, Philip,
But suppose we are wrong upon this point, and that it was not permissible for the jury to draw such inferences from the evidence. The next inquiry is, when did this partnership commence, and when did it end ? If it commenced at all, it must have been in 1843, when Enoch gave his signature to the Trenton Bank. When had the jury a legal right to infer that it ended ? Mr. Cooper, the main witness of the plaintiff says, the store at Greensburgh was closed up in the latter part of 1849, but the account is carried to 1853, because the old debts were paid after the store was closed. Mr. Van noy says he was in the employ of Green, Brother & Cooper, and in 1849 went up to Greensburgh, and packed up the goods in the store in two small boxes, and sent them to Philadelphia.
In the two boxes were about $50 to $75 worth of goods,
Now when did the plaintiff first commence to deal with this alleged firm, E. W. Green & Co..? The evidence of Mr. Cooper is, that the bank had been in the habit of discounting similar papers for the large concern of Green, Brother & Cooper, in Philadelphia, from eight to twelve years — taking the longest time named, twelve years. This would make the commencement in 1850, which was a year after the dissolution, and while the store at Greensburgh was entirely closed, or Hill doing business there for himself. But Vannoy says, and the jury had a right to believe him, that he was in the employ of Green, Brother & Cooper from 1849 to 1852, and that no paper signed E. W. Green & Co. was discounted at the plaintiff’s bank. So that the jury was justified in concluding that the plaintiff did not discount any of this paper signed E. W. Green & Co. until 1852. Now how stand the facts? E. W. Green, if he ever was in it, retired from the firm in 1849; the plaintiff, who never dealt with the firm during its actual existence, three years after its dis
When a partner retires there is sense and safety in requiring him to notify the old customers, for he is presumed to know who they are. Bnt how is he to know or notify new customers? How is he to notify all who, in every place, however distant, and at any future distance of time, may see fit to take without inquiry the fraudulent paper made by other members of the firm? Eor what we know to the contrary, this bank came into existence after the dissolution, and notice consequently impossible.
It is true a retiring partner may so act as to cause the new customer to be misled and to give credit; but then he becomes responsible by such acts, if they actually induced the credit. There is no pretence of any such act here. The bank did not know E. W. Green.
• The paper was in fact discounted on the credit of the firm in Philadelphia. The bank was not induced to discount the
I think the jury were not only justified in concluding, but were bound by the evidence to conclude, that when this paper was given, there was in fact no such partnership as that of E. W. Green &’Co., and that the defendant had done nothing which justified the plaintiff in either trusting or holding him as a partner, and that the rule should be discharged.
Rale discharged.
Reference
- Full Case Name
- THE FARMERS AND MECHANICS BANK v. ENOCH W. GREEN
- Status
- Published