Schutz v. Jordan
Opinion of the Court
This is an action for goods sold and delivered, consisting of cloaks and suits, to the amount of $32,604.99. On the trial the plaintiffs’ evidence tended to show that they forwarded from their manufacturing establishment in New York, to the defendants’ mercantile house in Boston, these goods to that amount, at various times between May, 1884, and August, 1885, on orders received by their salesman from the superintendent of the retail cloak and suit department of the defendants, who had given like orders before; that they sent invoices of the goods directed to the defendants, by mail, at the several times -when the goods were sent; that they sent statements of accounts of the goods to the defendants by mail at some times, and particularly in August and December, 1884; and that the goods had not been paid for.
The defendants’ evidence tended to show that the course of business in their house was such that goods bought and delivered were received by a person whose duty it was to keep a record of the packages, and forward them to the department where they belonged; that correspondence was received by a clerk, who sent invoices of goods bought where they would be received by the superintendent of the department for which they were bought, and all correspondence relating to goods bought to the buyer, and all statements of accounts for goods bought to a bookkeeper, who paid them when found to be correct; that the superintendent, when the invoices were received by him, would pass them as correct, if found to be so, and mark them as correct, and the person who received the goods would do the like, when they would go to that bookkeeper, and be entered on the books and be paid for according to the invoices so passed and received; that the superintendent of this department was inclined to cany more goods than,the firm desired, and was directed to keep down the stock; that, when the plaintiffs’ salesman applied to him for. orders, he told him that he was already carrying more goods than the firm allowed, but that, if he would not have any statements of accounts or dunning letters sent to the house, the goods might be sent, and the invoices might be sent by mail as usual, for they would come to him anyhow, and that he would pass the invoices as fast as he could; that the salesman said he would report.this to the plaintiffs, and after-wards said that he had done so, and they approved of this proposal; that all these goods were sent under that arrangement; that the invoices when received by him were kept from the members of the firm, and others who by the usual course of business would have known about them; that the statements of accounts sent by the plaintiffs in August and December, 1884, were for goods ordered by assistants of the superintendent, and sent in the usual course; that only one other statement was received, by the book-keeper, wdio found that it was for goods which did not appear on the books, and sent it to the superintendent for explanation, who kept'it, and reminded the salesman of the plaintiffs that it should not have been sent, and nothing further - was done about it; that the plaintiffs called -upon the superintendent to pass the invoices from time to .tjme/and' complained that they were slaved and getting old; and he requested them to send him some invoices of the goods without date,
The book-keeper who had charge of paying for goods testified to the course of business as stated; the superintendent, to the course of business and to the concealment of these transactions from the defendants, and liowdt was done; and two of his assistants testified to the disposition of these goods in the stock of thodepartmont, and to the marking down of goods and the results. The senior member of the firm testified that Marsh had charge of the wholesale department; that when there he and the other two members of the firm would go through this cloak and suit department, perhaps once a week, or every day, but did not examine the stock; that on every Saturday they had a statement furnished to them of the amount oí stock on hand in each department, and of the amount at the corresponding time of the year before, and also every month a oiatement of the amount on hand then and at the corresponding time of the year before;, and that they had no other knowledge on the subject; that the figures did not excite suspicion; that he was gone on a voyage round the world from the fore part of November, 1884, to about June 20, 1885, and that he had no information at any time of the receipt of any of these goods, or of the avails of them, until after the discovery;
The plaintiffs requested the court to charge the jury, in substance, among other things, that the burden of proof was on the defendants to establish the defense set up by them that the goods were sent upon this arrangement with the superintendent for concealment from thenr; that the jury would not be at liberty to find that the firm did not have knowledge of the goods sent during the absence of the senior partner, amounting to $23,386.66, upon his mere denial, without testimony from the other defendants; that if they, after the discovery, assumed ownership of any of the goods, such act would amount to a ratification sufficient to make them liable for all the goods, and especially for that part; and that the mailing of letters and other communications by the plaintiffs to them would be prima facie evidence that the letters and contents were received by them, in the absence of proof from each that they were not received.
The court directed the jury to return a verdict for the plaintiffs for the amount of one invoice of the goods received and retained after the discovery, amounting, with interest, to $117.77; and further charged the jury, in substance, that if the superintendent ordered these goods in the usual course, acting for the defendants, or gave the salesman to understand that he did, the plaintiffs were entitled to recover for the whole; that if he did not so order them, but lent himself in his position in the defendants’ establishment to the plaintiffs for the purpose of getting their goods into the establishment of the defendants among the defendants’ goods, without the knowledge and against the will of the defendants, and the plaintiffs or their salesman took advantage of the faithlessness of the superintendent to get the goods of the plaintiffs into the establishment of the defendants as if they were sold, against what they understood to be the will of the defendants, and without their knowledge, to be disposed of there as if bought, the arrangement, if carried out, would not amount to a sale of the goods so as to make the defendants liable for them as for goods sold; that the fact that the superintendent deceived the defendants was not important, unless the plaintiffs or their salesman concurred in the deceit, and acted' upon it; that, if the goods were sent under the arrangement with the superintendent which the defendants’ evidence tended to show, still, if these and other goods, sent by other persons under similar arrangements, came in such large quantities that, in view of all the circumstances, the defendants must have known that goods were being received as if bought beyond what were reported, and
The plaintiffs excepted to these rulings as to the burden of proof; as to the goods received during the absence of the senior partner of the defendants’ linn; as to the effect of retaining the goods and proceeds after the discovery; and as to the presumption of proof from the mailing of letters, — among other rulings. The jury returned a verdict for the defendants as to these goods, except those in the invoice, as to which a verdict for the plaintiff's was directed; and the plaintiff's rely upon these exceptions on this motion for a new trial.
The plaintiffs’ declaration or complaint consists of one count merely, for goods sold and delivered. The defendants’ idea or answer consists of the general issue or denial, and a statement of the facts which their evidence tended to show. If the statements in the answer are to be taken as true, until disproved, as ifris understood they must be under this system of pleading, they do not, in connection with those in the complaint, make out a cause of action; neither did the proof of the facts which the defendants’ evidence tended to show, in connection with the proof merely
These considerations afford something of a guide.for the disposition of the question made respecting the goods sent and received during the absence of the senior partner of the defendants. If it belonged to the defendants to show that the goods came, and were there and disposed of, without their knowledge, then there was no direct testimony that the
The ruling in respect to the effect of mailing letters, as evidence of their receipt and knowledge of their contents, is connected with this part of the case. The defendants insisted at the trial, and insist now, that if the goods were not ordered in the usual course, but were sent under the arrangement which they claimed existed, there was no sale to ratify, and that knowledge of the receipt of the goods would not make them liable as for goods sold; and they insist now that the submission of their liability to the jury in that aspect was wrong, and that, if it was done upon any erroneous ruling in respect to evidence bearing upon it, the plaintiffs had a chance to recover which they were not entitled to, and cannot complain that it was not made still more favorable. It is true that, if the transaction was as the defendants claimed and as the jury must have found, there was no sale growing out of that, as the case and the law applicable to it is now considered; but the case was not submitted to the jury as to this ground of liability, upon any idea of a prior sale that might be good if ratified, and would not be good of itself. If nothing had ever occurred between the parties, or those acting for them, before the goods were sent, and they were sent as if the plaintiffs understood they were sold, and received by the defendants, and retained with knowledge that they were so sent, the sending would be an offer of sale, and the receiving an acceptance which would constitute a sale, at a known price, if there was one, and at a reasonable price if there was.no other. In this case the invoices and statements, if sent and received, gave the price. It appeared at the trial, and appears now, that the plaintiffs were entitled to have the case submitted to the jury upon this aspect of the law. If so, they were entitled to have it submitted upon correct views as to the effect of the evidence. The defendants claimed then, and insist now, that the ruling as to the effect of mailing letters was correct. It was important to the plaintiffs that it should be; for, if the jury could find that the defendants received the statements of accounts and invoices, that would go far towards finding knowledge that the
“In reference to the duty devolving upon the holders of commercial paper to give notice to indorsers, it has, for the purpose of facilitating the transmission of notices of that diameter, long been held that the putting a letter into the post-office is not only good prima faoie evidehce, hut sufficient proof to establish the fact of giving notice. The receipt of such notice is not open to be controlled. But we do not understand that in other cases, where notice is required by the terms of the contract or force of a statute, the putting of a letter into the post-office is presumptive evidence of the fact of the receipt of such notice.”
It appears, however, from an examination of the authorities cited in behalf of the plaintiffs, that there is the further presumption, arising from the usual course of business, as to getting or receiving letters from the mail by those to whom they are addressed. Austin v. Hollad, 69 N. Y. 571; Huntley v. Whittier, 105 Mass. 391; Rosenthal v. Walker, 111 U. S. 185, 4 Sup. Ct. Rep. 382; Best, Ev. § 403. If correct apprehension by the court of all principles of law involved is necessary to the correctness of a trial, there probably was error in this ruling; but correct instructions applicable to the case as presented, and that the court should not be wrong to the extent of misleading the jury, are all that seem to be requisite. Schools v. Risley, 10 Wall. 91; Evanston v. Gunn, 99 U. S. 660.
In Huntley v. Whittier the defendant requested. the court to instruct the jury that mailing the letter in question was not sufficient notice, unless they were satisfied that the defendant received it. This request was complied with; but the court added that the mailing of the letter would be prima facie evidence that it reached its destination. This instruction was approved, and Mr. Justice Gray, then chief justice of the supreme court of Massachusetts, in delivering the opinion of the court, said that the presumption arising was “a mere inference of fact founded on the probability that the officers of the government will do their duty, and the usual course of business.” This statement of the foundation of the presumption is quoted with approval by Mr. Justice Woods, in the opinion of the court in Rosenthal v. Walker.
The evidence in this case does not show that the free-delivery system of the post-office department prevailed in Boston at that time; but perhaps judicial notice should be taken of the size of that city, and of the fact that it was such that the law required free-delivery there, and of the existence of the delivery there. 1 Greenl. Ev. § 6; Rev. St. U. S. § 3865. If so, the letters would be delivered by the government carriers at the place of business of the firm, and not at tho, residences of the members of the firm. If not so, the presumption from the usual course of business that the firm would get letters addressed to it would be that it would get them to its place of business, and not that the members would get them at their residences. That place would be the destination of the letters in either event. If the question was whether the letters got there only, the
The only question left, upon the evidence, to which the presumption could be applied, was whether the statements of account which the plaintiffs’evidence tended to show were sent, and the defendants’ book-keeper testified were not received, were received, and went to the defendants in person. If they were received at the establishment, the same course of business that would send them to the book-keeper would have sent them again to the superintendent for explanation, where the other one relating to goods not on the books was sent, and where all letters relating to goods bought were to be sent. There was no dispute about the fact of this course of business. The presumption arising from it as an inference of fact, as defined by Chief Justice Gray, would not, as applied to the course of the mail in arriving at and being disposed of in this establishment, have carried the letters to the defendants in person, but away from them to the superintendent. The extent of the presumption must necessarily be controllable by the circumstances of the actual course of business when shown.
In Groton v. Lancaster, 16 Mass. 110, it was held that proof of sending a notice from the overseers of the poor of one town by mail, directed to those of another town, was not sufficient to show that it was received by the latter. The ruling contended for by the plaintiffs would have left the jury to find that the defendants themselves received the letters not only beyond, but contrary to, the presumption arising from the course of business shown in this case, while the ruling made, so far as applicable, merely confined them to it. However erroneous the supposition of the court as to the law on the subject of this ruling may have been, no misdirection of the jury which would mislead them in this case is made to appear.
The question made upon the ruling, as to the effect of what was done by the defendants with the goods found in their establishment that came from the plaintiffs, relates' to the liability of the defendants in this action for all the goods sought to be recovered for, as well as for any of those goods in particular. Goods had been bought of the plaintiffs in the usual course, before any of those in question were sent, and also in August and December, 1884. The superintendent had passed bills, and procured money to be sent to them, in June, 1885, for some of those first sent under this arrangement; and those of the invoice of July 30, 1885, had been lately received. All of these, except the latter, had been paid for. The proportion of all of them to the whole quantity that came from the plaintiffs is so small that it might fairly be presumed that at least a considerable portion of those left were of the goods in question. The defendants’ evidence that they could not ascertain whether any of them were goods not paid for must therefore be taken to mean that they could
The question here, however, is not whether the plaintiffs lost their property in these goods by reason of their conduct, hut whether the defendants became liable for these goods, as for goods sold to them by reason of theirs. But if the plaintiffs lost their right of property in the goods, the liability of the defendants to them would not he enhanced by anything which they did about the goods. The intermingling may not have been so willful and fraudulent as to affect the right of property. Ryder v. Hathaway, 21 Pick. 298; Pratt v. Bryant, 20 Vt. 333. If not, the plaintiffs could maintain no action for its detention without a demand for theirs. Bond v. Ward, 7 Mass. 127; Sawyer v. Merrill, 6 Pick. 477; Shumway v. Rutter, 8 Pick. 443.
The defendants owed to the plaintiffs no duty about the goods. The most they could do would be to request the plaintiffs to select their own, and take them away. They did not know that the plaintiffs could do that, so far as shown; and the claim of the plaintiffs that the goods were sold, and belonged to the defendants, would naturally lead them to suppose that the request would be unavailing if made. They are not es-topped from denying a sale by any misleading of the plaintiffs by their course in this respect. At the time they were doing w’hat they did about these goods, they were doing nothing about the others which the plaintiff claimed to have sold, and were expressly repudiating to the plaintiffs any liability for them as for goods sold. There was no attempted sale
The plaintiffs have not on this motion relied upon the sale of the goods and receipt of the avails prior to the discovery as bearing upon the liability of the defendants for those goods as for goods sold and delivered. This is not alluded to for the purpose of showing that anything has been waived or omitted on the part of the plaintiffs, but for the purpose of showing that it -was not overlooked by counsel or court. In c,onsidering this point, it must be taken to be settled that those goods were sold, and the money for them received, by the, defendants by the procurement of the plaintiffs, and without knowledge of the defendants, on their part, that the goods of the plaintiffs were being sold, or that money was being received for them. They, and all acting for them in those transactions, supposed that their own goods 'were being sold, and that all money received was theirs. Their superintendent was acting in these transactions for the plaintiffs, and not for them. The money was in the defendants’ hands as if the plaintiffs, as before supposed, had put their goods into the defendants’ establishment among the goods, with: out tlie knowledge of any one connected with it, intending that they should be sold, and the money received for them, and a.ll had been so doue. The plaintiff's may not have lost their right to the money, but it was not in the defendants’ hands through any fault of theirs. They were under no obligation to do anything about it until called upon for it. An action could not be maintained for it until after a demand for it. 2 Greenl. Ev. § 120; Bank v. Bank, 40 Vt. 377; Saville v. Welch, 58 Vt. 683, 5 Atl. Rep. 491. The only thing which the defendants could do with the money was to keep it or send it to the plaintiffs. As they wore not bound to do the latter, the omission to do it could not justly be claimed to affect their liability. Every advantage from this fact was claimed for the plaintiffs on the trial, and the questions arising on these claims were disposed of according to these views.
The defendants knew when they retained these goods after the discovery, and sold them or put them into their stock again for sale, that the plaintiffs oiaimed that they were sold; but they did not know how many of them the plaintiffs claimed they wore still liable for, nor at what price. These goods were situated differently, in this respect, from those sent accompanied by a statement of account for them. The plaintiffs could not claim that they became liable for these goods at any price, or for any amount, for there was nothing to show any price nor any amount; nor that the defendants were liable for what those not paid for were reasonably worth, for there was no evidence as to how many there were of those particular goods not paid for, or what they were worth.
In Pratt v. Bryant, 20 Vt. 333, the plaintiff sought to recover the price of some wood which he supposed he had sold to the defendant, and
On the whole case, as presented, understood, and considered with reference to these points made on this motion, it is not made to appear but that the plaintiffs had a fair chance before the jury to obtain a verdict, if they could, for these goods, as if sold and delivered. That they failed is only attributable to the -weakness of their case, and the strength of the defendants’ case, on the questions involved in that aspect. Whether they have rights to be relieved by other remedies is not now in question.
Motion for new trial overruled, stay of proceedings vacated, and judgment on the verdict ordered.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.