Providence MacHine Co. v. Browning
Providence MacHine Co. v. Browning
Opinion of the Court
The opinion of the Court was delivered by
This is an appeal from an order of nonsuit. The action was against James S. Blalock, E. W. C. Blalock and Mrs. M. E. Browning, individually, and as partners, under the firm name of Goldville Manufacturing Co., and against the Goldville Manufacturing Company, a corporation of this State, being based:
(1) Upon a contract in writing, dated July 30, 1900, for the purchase of machinery to the amount of $9,104.52, to be delivered by plaintiff to the firm, Goldville Mfg. Co., about December 15, 1900, terms, one-half cash, one-fourth in six months, one-fourth in twelve months, deferred payments secured by bankable notes, bearing interest at six per cent, per annum, this contract being signed “Goldville Mfg. Co., E. W. C. Blalock.”
(2) Upon an instrument in writing, dated September 7, 1900, signed Goldville Mfg. Co., per J. S. Blalock, and by J. S. Blalock, L. W. C. Blalock and M. E. Browning, which, after reciting the terms of the contract of July 30 above, *4 contained these stipulations: “We hereby agree to indorse the said notes, and should the Goldville Mfg. Co. fail to pay for the said machinery on terms of contract made between themselves and Providence Machine Co., dated July 30th, 1900, or shall fail to pay any notes when due, which are given in payment, we the undersigned do hereby bind and obligate ourselves, jointly and severally, each with the other, and with the Providence Machine Co., to malee good and pay the Providence Machine Co. the amounts which may be due them in accordance with the contract above mentioned.”
(3) Upon a note dated May 1st, 1901, executed by Gold-ville Manufacturing Co., J. S. Blalock, president, E. W. C. Blalock, secretary and treasurer, and indorsed by J. S. Blalock and L. W. C. Blalock, promising to pay to the order of Providence Machine Co., six months after date $2,317.10, with interest at six per cent, per annum. The complaint demanded judgment for $2,317.10, with interest at six per cent, per annum from May 1, 1901.
The Goldville Manufacturing Co; was incorporated on October 22d or 23d, 1900, but thereafter becoming insolvent, was placed in the. hands of a receiver in December, 1901, before the commencement of this action. The machinery was duly shipped to the Goldville Mfg. Co. about 10th or 13th of December, 1900, was received, and was placed in the mill being in process of construction by the corporation, Goldville Mfg. Co., which had been begun by the partnership, Goldville Mfg. Co., at Goldville, S. C., in July or August, 1900. The cash payment was made 31st January, 1901, but notes for deferred payments were not taken upon the delivery of the machinery. But on May 1st, 1901, two notes, one of which is set forth in the complaint, were received by the plaintiff. Neither note was indorsed by M. E. Browning, and so far as appears they rvere not presented to •her for indorsement. The issues in the case arose upon the contest of Mrs. M. E. Browning, that she was not a *5 partner in the Goldville Mfg. Co. firm, and that she was not liable upon the guaranty.
The motion for nonsuit was made upon the following grounds: “I. Because there is no evidence that Mrs. Browning was a partner at the time this debt sued on herein was contracted, and there is no evidence that she was to become at any time liable for the debt sued on herein. II. Because the contract sued on herein is without any valuable consideration and is, therefore, void. III. Because the undisputed evidence offered b3^ the defendants shows that the guaranty sued on herein is for and of the performance of the contract of date July 30, 1900, in accordance with the terms thereof, and that the guarantor, Mrs. Browning, has been released and discharged from liability on the guaranty: 1st. In that it appears from plaintiff’s undisputed evidence that the contract was made by the partnership firm of J. S. and L. W. C. Blalock, under the firm name of Goldville Manufacturing Co., prior to the creation or existence of the corporation hereinafter named, and the said contract was for the delivery of the machinery therein mentioned to said partnership, while, in fact, and subsequent to the contract and guaranty, the machinery was delivered by the plaintiff to the corporation, Goldville Manufacturing Co., of Goldville, South Carolina, and this change in the said contract was made without the knowledge or approval of Mrs. M. E. Browning, the guarantor sued herein. 2d. In that the plaintiff failed to require the cash payment provided for in the said contract of July 30, 1900, and failed to require the execution of the notes, as provided in said contract or within a reasonable time thereafter, but on the contrary, waived and assented to a change in time for such cash payment, and assented and agreed to waive the execution of the notes as provided for in the contract, and agreed to accept the bonds of the company in lieu of the notes and in payment of the debt, all without the knowledge or assent of Mrs. M. E. Browning, the guarantor, sued herein. IV. Because the plaintiff had failed to allege and show that it used diligence: 1st. In *6 making demand of the principal debtors at the time of the delivery of the machinery or within a reasonable time thereafter, for the first cash payment and for-the execution and indorsement of the notes for the balance, in accordance with the terms of the contract of July 30, 1900. 2d. In failing to prosecute the principal debtors promptly and in a reasonable time after their failure to comply with the said contract of July 30, 1900, for such failure and to collect its said debts. 3d. In giving notice to Mrs. M. E. Browning, the guarantor, sued herein, promptly and within a reasonable time after it happened, that the principal debtors had failed to keep and comply with their contract of July 30, 1900, as to cash payment and as to the giving and indorsement of the notes. 4th. Because the evidence shows that the breach after the contract guarantee occurred in December, 1900, or January, 1901, and the only and first notice that was given this guarantor was the paper signed by .0. A. Robbins, of date November 7th, 1901. V. The evidence shows that the plaintiff has failed to use due diligence: 1st. In making demand on the principal debtor at the time of the delivery of the machinery, or within a reasonable time thereafter, for the first cash payment and for the execution and indorsement of the notes for the balance, in accordance with the terms of the contract of July 30th, 1900. 2d. In failing to prosecute the principal debtors promptly and within a reasonable time after their failure to comply with said contract for such failure and to collect its said debt. 3d. In giving notice to Mrs. M. E. Browning, the guarantor sued herein, promptly and within a reasonable time after it happened, that the principal debtors had failed to keep and comply with their said contract of July 30, 1900, as to the cash payment and as to the giving and indorsement of the said notes. VI. Because there is no evidence that Mrs. Browning guaranteed the payment of the notes sued on herein, but, on the contrary, the plaintiffs’ evidence shows that it is a different note from the guaranty. VII. Because the undisputed evidence shows that the plaintiff accepted the notes sued on herein, and waived those pro *7 vided for in the contract of guaranty by accepting the notes of the principal debtor, and there is no evidence that Mrs. Browning consented to' such change, and that the plaintiffs waived their right to proceed against the guaranty in case of loss.”
“This is an action brought by the plaintiff against the defendant on a contract made with D. W. C. Blalock, as Goldville Manufacturing Co., and on a contract of guaranty afterwards made by the defendants, Mrs. M. E. Browning and others, guaranteeing the payment of the purchase money of said machinery according to the terms of said contract of purchase. Plaintiff also claims that Mrs. Browning and others are liable as partners. At the close of plaintiff’s testimony, the defendant, Mrs. Browning, moved for a non-suit on various grounds, which are set out in the record. I think the nonsuit should be granted for two reasons:
“First. There is no testimony showing-, or tending to show, that Mrs. Browning was ever a partner in the firm of Goldville Manufacturing Co. Her only connection with the company was as a stockholder in the corporation, which corporation was chartered after the contract was made.
“Second. Plaintiff’s own testimony shows the following state of facts: That the contract for the purchase of the machinery provided for the delivery some time in December, 1900; that it was delivered in December, 1900; that one-half of the purchase money was to be paid upon the delivery; one-fourth of balance in six months thereafter, and the other fourth in twelve months thereafter; that bankable notes were to be taken for the deferred payments, and that the guarantors were to indorse said notes; that the cash payment provided for in the contract wras made in the early part of the year 1901, but that no notes as provided for in the contract were given at that time; that on May 1st, 1901, the notes of Goldville Manufacturing Co., signed on back J. S. and L. W. C. Blalock, were given for deferred payments; that *8 the. said notes matured in six months and twelve months from May 1st, 1901; that said notes were accepted by plaintiff in ‘settlement’ of the account for said machinery, and plaintiff sent Goldville Manufacturing Co*, a statement showing the acceptance of the notes in ‘settlement;’ that Mrs. Browning- had no knowledg'e of, nor did she acquiesce, in said change of contract.
“I hold that these facts show a change in, and material alteration of the contract of guaranty, on the strict terms of which the guarantor had a right to stand, and that such change of contract operated in law as a release of the guarantor.
“It is, therefore, ordered, that the nonsuit be granted and the complaint be dismissed.”
Respondent has given notice in the record that in case the Court does not sustain 'the nonsuit on the grounds taken by the Circuit Court, that she will ask that the nonsuit be sus *11 tamed upon the other grounds urged in the motion and set out above. These grounds substantially are: (1) That there was no testimony to show any consideration for the contract of guaranty. (2) That the contract of guaranty was altered, in that the machinery was delivered by plaintiff to the corporation, Goldville Manufacturing Co., when the contract provided for a delivery to the partnership, Goldville Manufacturing Go. (3) The evidence showed want of diligence on part of plaintiff in notifying defendant of the default of the principal and in failing to prosecute the principal debtor promptly, &c.
Having reached the conclusion that the nonsuit must be set aside and a new trial granted, we do not deem it important to consider the remaining exceptions.
The judgment of nonsuit is reversed and the case is remanded for a new trial.
Reference
- Full Case Name
- Providence Machine Co. v. Browning.
- Cited By
- 6 cases
- Status
- Published
- Syllabus
- 1. Nonsuit — Partnership.—There being some evidence here tending to show that the alleged partners had combined capital and labor in a business enterprise for common benefit, the question of partnership should have been submitted t'o the jury, notwithstanding the declaration of all parties that one was not a partner. 2. Ibid. — Guarantor—Defense.—That evidence of alteration in time of payment of debt, and of shipment of goods to corporation instead of to partnership as contracted, is brought out of plaintiff’s witnesses on cross-examination, is mot ground for nonsuit, as these are defenses, and should -be passed on by jury. 3. Guaranty of payment for machinery made after contract of sale, but before delivery of machinery, does not require other consideration to support it. 4. Ibid. — Guarantor.—Where machinery is purchased by a partnership, and shipped to and received by a corporation of same name formed ■by partners to carry on same business at same place, it is error to take from jury release of guarantor by such alteration. 5. Guarantor.' — Under guaranty of payment, it is not necessary to hold the guarantor that creditor should make demand on principal debtor, give notice to guarantor of non-payment, nor to use due diligence in pressing principal debtor.