Case v. Cushman
Case v. Cushman
Opinion of the Court
The opinion of the Court was delivered by
The circumstances connected with the turning point of the cause, are simple and few. When the defendant became the assignee of the liquidating partner, Yolz, he received from him the books and papers of the concern, which had previously been in the hands of counsel for collection. It was distinctly proved that the bill of goods which gives rise to the present contest, though furnished by the Messieurs Gascoigne to U. Cushman & Co., in May 1830, had not been entered on the books of the latter when they dissolved their partnership in the October following; nor has it been entered since. It appears, too, that it was the business of the plaintiff to have entered it, and that the omission to do so, was his personal default. The Judge charged with entire accuracy, so far as the direction went, that if the defendant was deceived by any false exhibit, or by the suppression of any fact which the plaintiff might have communicated, and which it was material for the defendant to know, there could be no recourse to him; and he was right, too, in supposing, that as the plaintiff’s omission to enter the bill was long before the terms of the agreement were negotiated, there was no room for a presumption that it was a preconceived measure to defraud. But he inferred from this that there was nothing in the circumstance to restrain the generality of the covenant “ to indemnify, save, and keep harmless, the said Ugenior Cushman, from all claims and demands due or owing by the said U. Cushman & Co.” because the defendant had not taken the precaution to restrict his liability to debts per schedule, or to such as appeared on the face of the books. If, however, he was left in ignorance of any fact material to be known by him, which it was in the plaintiff’s power to communicate, the terms of the agreement must not be taken to extend to it. It is one of Pothier’s rules of interpretation, which have been deemed consonant to the rules of the common law, that “ however general the terms may be in which an agreement is conceived, it only comprehends those things in respect to which it appears that the contracting parties proposed to contract; and not others they never thought of.” Such are the words <?f Mr Evans, his translator, (Vol. I. p. 53), and their relevancy to the case in hand is perceivable at a glance. The plaintiff knew that this bill had not been entered in the partnership books; and he ought to have known that, in ascertaining the partnership debts, the defendant would be guided by them. The books of a firm are the register of its transactions; and they are supposed to exhibit
The other exception is not sustained. The construction put on the Statute of New York by the court below, seems to be the same that has been put on it by the courts of that State; by which it appears that it could furnish no defence to the action brought against the plaintiff, and that the defendant lost no advantage by not being warned to come in and defend against it. It is true, that, for want of it, the defendant may insist in this court on any ground of defence that would have availed the plaintiff in the Supreme Court of New York, in which .the action was determined ; but as the interpretation put by that court on the statutes of its own State, must be followed elsewhere, this ground of defence cannot serve here.
Judgment reversed, and venire de novo awarded.
Reference
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- Case against Cushman
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