Archer v. Dunn
Archer v. Dunn
Opinion of the Court
The opinion of the Court was delivered by
To judge of the objection to the form of the action, it is necessary to consider how the parties stood at first, and how they stand now. By the original contract between Samuel Archer, Whitton Evans, and the partner firm of I. C. Jones, Oakford & Co., they agreed with the defendant and with each other, to enter into the Chinese trade for a period of not less than three nor more than five years; the first named parties furnishing capita] to send two ships yearly to Canton by way of England, and the defendant furnishing his services in selling the goods at Canton, and investing the proceeds in return cargoes separately consigned, in proportion to their respective shares, to the parties resident in Philadelphia. It was agreed that the defendant should not bear a part of any loss on dry goods, but that he should share, equally with the others, the profits arising from a sale of them, and have a commission on specie as well as on the other parts of
On these facts, it is clear that several actions could not be maintained on the special contract, as it was made with the plaintiffs jointly. In Vaux v. Steward, (Styles 156), and Vaux v. Draper, (id. 203), a joint action was maintained on a promise to two in consideration of £10 paid to procure the restoration of their cattle which had been distrained, because the consideration had moved from the plaintiffs jointly. Here the consideration — the employment of the defendant by the plaintiffs as their factor— certainly moved from them jointly. What matters it, then, that the proceeds were to be divided at Canton, and the share of each partner separately consigned to him without waiting for a settlement of the parnership accounts ? That arrangement was a matter betwixt the partners themselves, and for their private convenience. Partners are tenants in common of the partnership effects; and their interests continue to be blended till they are separated by actual partition. But it is argued that the present action is brought on an implied promise which is joint or several, as the consideration is joint or several; and so the law was held in Boggs v. Curtin, (10 Serg. & Rawle 211); but the consideration, moving as it did fi’om the plaintiffs as partners, was joint, and the resulting promise is consequently joint. The money in the defendant’s hands was received by him as the price of the partnership effects; and being partnership funds when it was received, it remained so, being undivided by separate investment. There are cases in which an action may be brought jointly, though the interests to
The action is therefore well brought; and this determination of the point is decisive also of the question of set-off betwixt the defendant and the personal representatives of the deceased partner. Defendants may undoubtedly set-off the cross demand of one of them, and thus, with the assent of all, pay their joint debt with his several property, for, as was held in Stewart v. Coulter, (12 Serg. & Rawle 252), no one can be hurt by it; but there is no instance of a set-off of a debt due by one of several plaintiffs, because that would enable the defendant to pay his debt to the prejudice of the others. The point is too clear for elucidation; and it was, besides, directly decided by this court in Henderson v. Lewis, (9 Serg. & Rawle 379).
The question of commission depends on the interpretation to be put on the contract of the parties, collected from their letters and acts; for the memorandum prepared by the defendant at Canton, was not executed by the plaintiffs. It has, however, been legitimately referred to for the defendant’s understanding of the agreement ; and it is enough to say that it is as obscure and uncertain in its terms, as mercantile contracts usually are. Blanks were left in it for the rate of commissions, to be filled by the plaintiffs; and in the letter which accompanied it, the defendant said; “ I must leave for your decision to fill (the blanks) at either the five per cent, for the sales and investment of dry goods agreeably to your offer under the date of the 4th mo. 15th, 1825, or say two and a half per cent, on sales of dry goods, and two and a half for investing the proceeds, which amounts to the same; ok on my terms of three per cent, on the gross amount of sales of dry goods, and three per cent, for investing the nett proceeds.” The plaintiffs
The clause in the memorandum stands thus: “ The first named parties agree to allow Nathan Dunn, for his services, the following commissions, to wit,-per cent, on the-amount sales of dry goods, and-- per cent, for the investing of the proceeds; and three per cent, on all specie shipped, and three per cent, on sales, and three per cent, for the investment of all other cargo, and three per cent, on the ships’ and factory disbursements, to be received in Canton.” This makes the matter no clearer than the proposition in his letter. In both he asked three per cent, on the gross amount of sales; and if he demanded that as the basis of the larger commission, it would be singular if he had consented to take any other for the smaller one. Yet if he meant to insist on the gross amount for each, it is singular that he did not say so in regard to both. But it is clear that the sum on which the commission was to be charged, was the amount of sales, whether gross or nett, and not the amount of the investments; otherwise two and a half on sales, and the same on the investments, would not “ amount to the saíne” as five per cent, on either. The same amount could be obtained only on the basis of an intermediate sum. In a subsequent part of the correspondence, the plaintiffs, after reciting the clause in the defendant’s proposal already quoted, say: “ Now thou will perceive that it is here left discretionary with us to pay either the five per cent, on the amount of sales, or to divide it as mentioned in thy letter, two and a half on the sales and two and a half on the nett proceeds. When we made the offer of five per cent., we were of opinion with thyself that it amounted to the same, or nearly so, say the amount of investments being less than the sales by the amount of thy commissions.” The inference is, that they thought the difference too small to be a ground of objection. To say two and a half per cent, on sales, and two and a half for investing, is not necessarily to say two and a half on the sum invested. The sentence is elliptical, and supplying the parts omitted, would stand thus: two and a. half on the sales for selling, and two and a half on the sales for investing. By no other interpretation could the apportioned parts of the commission be made the same as five per cent, on the sales. It is clear, then, that they were to be charged on the same sum; but whether on the gross amount or nett proceeds of the sales, would be a difficult question were it not settled by the contemporaneous construction of the parties. In the last year of the second period, the defendant transmitted the accounts to that date, accompanied by a letter, in which he said: “ In charging commissions on the sales of dry goods and for the investment of the same, I have followed literally your letter on the subject, of the 4th mo. 15th, 1825, which would not have been required to be noticed here but for my misconstruction of it when I formerly wrote you
As regards amount, however, the important-question is, whether the Isabella’s cargo belongs to the second or the third period of the business. Perhaps the plaintiffs were bound to send two ships yearly by way of England. The dry goods could be advantageously laid in only there; and the plaintiffs had engaged to send that number in the first agreement, which was the basis of those that followed. Subsequently to it they speak of allowing him certain privileges “ in two ships annually from the United States, via England, to Canton;” and a commission of so much per cent. “ on the sales of dry goods received from England.” But in the happening of a certain contingency, they were not to send two or any other number. In the memorandum of agreement, sent to the plaintiffs for execution, it was provided thus: “ It is understood that if the information received from Nathan Dunn, by the first named parties, of the state of the - Canton market for dry goods, should be so unfavourable as to make it necessary to suspend their operations for a season to prevent loss, in such an event, their engagement to send two ships in each year via England to Canton, is not to be considered binding.” Though this instrument was not formally executed, its conditions are to be taken for a part of the contract, because they were not rejected, and the parties went on with the business on the basis of them. Now, the defendant had, in three of his letters, given a very discouraging account of the state of the Canton market, and in a fourth he said: “ I am notv of opinion it will be pretty safe to forward two cargoes in each season to this country, unless the shipments by Americans or the East India company are more than usual, or there are depressions in the Canton market. If not in time to ship in sea
The remaining question has regard to the interest; and it is to be determined by the law of the place where the contract was to be executed. The rate allowed by it may always be expressly reserved, though it exceed the rate allowed by the law of the domicil, or the law of the forum; and where no rate is stipulated,
Judgment for plaintiffs, the amount to be settled by the counsel.
Reference
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- Archer against Dunn
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