Fripp v. Williams, Birnie & Co.
Fripp v. Williams, Birnie & Co.
Opinion of the Court
The opinion of the court was delivered by
This was an action originally brought by Florian C. Mey, and after his death continued by his executors, to recover certain bonds of the city of Savannah, or the value thereof, together with the amount collected on the coupons of said bonds, which he sent to Williams, Birnie & Co., in New York, to be deposited in a box in the vault of the safe deposit company of that city, but which, he alleged, were embezzled and fraudulently misapplied by Williams, Birnie & Co. to their own use.
The defence set up by the defendant George W. Williams (the other defendant, William Birnie, having made default,) while admitting that a partnership did exist between himself and Birnie at the time the bonds in question were sent to the firm by Mey, is, that he is not liable for the fraudulent conduct of Birnie, because the transaction in regard to the bonds in question between Mey and Birnie was entirely unknown to him at the time; that it was not a transaction within the scope of the partnership, and that he derived no benefit from it.
At the opening of the case a motion to dismiss the appeal was submitted, but as proper notice of this motion had not been given, it is unnecessary to notice the grounds upon which it was based, as they are not properly before us for consideration, and we will, therefore, proceed at once to consider the case on its merits.
It would be impracticable to give a statement of the facts of this case without extending this opinion to an unwarrantable length. We propose, therefore, to confine our attention to the several questions raised by this appeal, only referring to so much of the evidence as is necessary for a proper understanding of those
The next question raised by the appeal is whether the letter of Williams, Birnie & Co., of May 2d, 1879, was any evidence of the fact that the bonds in question had been placed in a box in the vault of the safe deposit company, as directed by Mey. We do not see how any objection to the competency of this letter or any part of it could be raised, inasmuch as no objection was made at the time it was offered in evidence. To enable appellants to raise this question it should have been made to appear that the letter, or such portion of it as is deemed objectionable, was objected to at the time it was offered. As this does not appear, the objection cannot now be made. Burris v. Whitner, 3 S. C. 510.
The third question raised by this appeal is whether the Circuit judge erred in charging the'jury that the plaintiff must show that the securities upon which certain loans were alleged to have been originally made by the Fourth National Bank of New York to Williams, Birnie & Co. went back into the assets of that firm, and that the firm received some benefit from them after they were released by the substitution of Mey’s bonds.
For a proper understanding of this question a brief statement of facts will be necessary. It, appeared that Birnie, without the knowledge of Williams, but while the partnership was in existence, had opened what may be called a demand loan account with the Fourth National Bank of New York, in favor of Williams, Birnie & Co., under which arrangement the bank advanced, from time to time, considerable sums of money, charging the same on their books to Williams, Birnie & Co., but taking no notes or other evidences of indebtedness therefor, which advances or loans were secured by the deposit of bonds as collateral securities. Two of these loans, one made August 28th, 1877, for $25,000, and the other made March 22d, 1879, for $15,000, were origi
It thus appears that by the improper use of Mey’s bonds, certain other bonds which had been previously pledged by Williams, Birnie & Co. as collateral security for a debt purporting to be due by them to the bank, were released and restored to the possession of Williams, Birnie & Co., or, at least, were delivered upon their written order to their agent or,clerk. Now, if by reason of this transaction Mey lost his bonds, it certainly cannot make any difference whether Williams, Birnie & Co. realized any benefit from the bonds so restored to them. If they had been destroyed or stolen immediately after they were returned to Williams, Birnie & Co., it is difficult to see how that could relieve them from responsibility for Mey’s bonds if they were improperly used by and went to pay the debt of that firm to the bank. The railroad bonds which were released by the improper use of Mey’s bonds, belonged either to Birnie or to Williams, Birnie & Co., or to some third person. If they belonged to Birnie and had been pledged for a debt of the firm and never redeemed, the firm would have been liable to Birnie for their value. So, too, Birnie would have had the right, with the consent of the bank, to withdraw these bonds and substitute others in their place. But if they belonged to a third person, and had been lost to such third person by being pledged for a debt of the firm, the firm certainly would have been liable for their value, and if the firm was relieved from such liability by the improper use of Mey’s bonds, that would be a benefit to the firm, even though there was no evidence as to what was done with the railroad bonds after they were withdrawn from the bank. And, cer
The last point made by the appeal is, that the Circuit judge erred in charging the jury “ in respect to matters of fact.” The specifications of the particulars alluded to in this ground of appeal are that the judge stated to the jury that there was no proof that the railroad bonds released by the substitution of Mey’s bonds went back into the assets of Williams, Birnie & Co., and that the firm received the benefit of them; .that the proof that the firm of Williams, Birnie & Co. received any benefit from the act of Birnie in releasing the railroad bonds by the substitution of Mey’s bonds was deficient, and that there was no proof that they did receive any benefit from the release of said bonds.
The object of the section of the constitution referred to in support of this ground, (Section 26, Article IV.,) as we understand it, is to prevent the judge from impressing upon, or even indicating to the jury the conclusions to which the evidence adduced in any case has brought his mind. Hence, if there is any evidence whatever as to a fact in issue, it is error to charge the jury that there is no proof of such fact. Carrier v. Hague, 9 S. C. 454. But if there is no evidence tending to prove a fact in issue, then it is no violation of the constitution to so instruct the
The judgment of the Circuit Court is set aside and a new trial is ordered.
Reference
- Full Case Name
- FRIPP v. WILLIAMS, BIRNIE & CO.
- Status
- Published
- Syllabus
- 1. Motion to dismiss appeal not entertained, the proper notice not having been given. 2. The statements made by a partner after dissolution of the partnership, concerning a debt due by the firm, is competent evidence against the other partner’, when offered after evidence aliunde has been introduced of the partnership, and of the existence of such debt. 3. Objection to the competency of evidence not taken at the time when the evidence is offered, cannot be afterwards raised. 4. A loan was obtained by a partnership firm from a hank upon the deposit of certain railroad securities, and afterwards, upon the order of the firm written by one of the partners, such securities were surrendered to an agent of thedirm in exchange for certain municipal bonds belonging to a third party, fraudulently so applied by such partner, which bonds were subsequently sold by the bank and the proceeds credited upon the indebtedness of the firm. In an action by the owner of these bonds against the firm for their recovery, it is not necessary for the plaintiff to show, in order to fix a liability upon the innocent partner, that the railroad secu- . rities went back into the assets of the firm, or in some way were of benefit to the firm after they were released. 5. Article IV., Section 26, of the constitution of this state, which provides that judges shall not charge j uries in respect to matters of fact, considered.