Societe des Mines D'Argent et Fonderies v. Mackintosh
Societe des Mines D'Argent et Fonderies v. Mackintosh
Opinion of the Court
The plaintiff (appellant) sued the defendant (respondent) upon a promissory note as maker. Upon the trial, judgment was rendered for the defendant. The plaintiff moved for a new trial, which, being overruled, he appealed to this court from both the judgment and from the order overruling the motion for a new trial. The facts of the case are substantially as follows: The plaintiff had since 1879 been engaged in mining in Utah. It was represented in the territory by F. Medhurst and C. B. Oohen. Medhurst was the manager of its financial affairs, under the style of “Commercial Director.” Oohen was the general manager of the mines. The defendant, prior to and during that time, had been engaged in the business of sampling ores, with office at Salt Lake City. The plaintiff had its ores sampled by the defendant. The accounts for sampling were made, out in the name of the company, and the checks given for money to pay such accounts were usually signed, “F. Medhurst, “Commercial Director,” or “F. Medhurst, Qom. Dir-” The financial business of the company was transacted in the name of “F. Medhurst, Commercial Director.” ' This manner of transacting the business of the company was known to the defendant. On the 3d of February, 1882, Medhurst asked the defendant to execute to him his promissory note for $7,000, as a matter of accommodation to him (Medhurst). The note was, as the defendant understood, to be used as an asset in the transfer of the plaintiff’s mining property here in Utah, in connection with some indefinite deal in regard to the Hecla mine in Montana. It was a personal accommodation to Medhurst, to enable him, in the transaction, to present apparently correct accounts. Medhurst promised the defendant that the note should not be negotiated, but should be held only as such asset. The note which Medhurst presented, under
The first question for our consideration is as to who is the payee of the $7,000 note sued on. The plaintiff claims to be the payee, and the defendant claims that Medburst individually is the payee. Upon the face of the note, it is made payable to “F. Medhurst, Commercial Director.” The courts have sometimes held that, in such a case, an action may be maintained’in the name of either the agent or the principal. If the transaction was known to be with the principal, but through the agent, it would be especially proper that the suit be in the name of the principal. But if the agent were acting apparently on’his own behalf or responsibility, or as holding the property in trust, having-given full security to his principal, as in case of a guardian who has given bond for the property intrusted to him, an action in the name of the agent would be proper, and the affix of the word “guardian” might be treated as descripbio personen. The true rule evidently is that recognized by the supreme court of the United States in the case of Bank v. Bank, 5 Wheat., 326, namely, that where, on the face of the paper, circumstances appear from which it might reasonably be inferred that it was either a private paper or an official one, the matter being in doubt, extrinsic evidence was proper to remove the doubt. In that case the action was based upon a check dated at “the Mechanics’ Bank of Alexandria, and the body of it read, “Cashier of the Bank of Columbia, pay to the order of P. H. Minor, Esq., ten thousand dollars, and signed “Wm. Patton, Jr.” The Mechanics’ Bank was sued on the check, and in defense set up that it was not the check of the defendant bank, but was the individual check of Patton. Parol evidence showed that Patton was the cashier of the defendant, and that Minor was its teller; that the check used was taken from a book of blank checks kept for use by the cashier in his official capacity; that the cashier, had frequently used the blanks out of that check-book in bis official transactions; that, in using these blanks officially, he signed them
It cannot be said that, because Medhurst was the agent of the plaintiff, therefore the agent’s knowledge was the company’s knowledge, and the plaintiff was bound by his acts in giving the note and letter to the defendant, and in stating to him that the transaction was a private personal affair. Where a party combines with the agent in such a way as to cause the principal to be wronged out of his property or money, the knowledge of the agent is not the knowledge of the principal, nor is the principal bound by the acts of the agent. Insurance Co. v. Minch, 53 N. Y., 144; Bank v. Mott, 39 Barb., 180; Piedmont v. Ewing, 92 U. S., 377. It is a general rule that the principal is bound by the knowledge of his agent, but this rule is based upon the principle of the law that it is the agents duty to communicate to his principal the knowledge which he has respect
As the case will have to be reversed, a further examination of tbe exceptions and alleged errors is unnecessary. Tbe judgment and order overruling tbe motion for a new trial are reversed, and tbe cause remanded.
Dissenting Opinion
(dissenting.)
I dissent from the judgment of the court. It appears, from the pleadings and evidence in this case, that the appellant, at the time of the transaction in question, was a corporation by virtue of the laws of the Republic of France, by the name of “Societe des Mines D’ Argent et Fonderies de Bingham,” and that it was working the Old Telegraph mine, situated in Utah; that it appointed F. Medhurst its commercial agent to conduct the financial business of the mine, and sent him here; that appellant’s account at the bank, and other business transactions, were in the name of “F. Medhurst, Commercial Agent,” or some abbreviation thereof, and that one Cohen was general manager of the mine, and M. C. Fox was appellant’s book-keeper, acting under the direction of Medhurst. It also appears from the evidence that defendant, Mackintosh, was engaged in business in Salt Lake City, and as an ore sampler in the usual course of his business, received and sampled the Old Telegraph ores shipped to him, paid the back freight, and sent in his bills, and received checks on Mc-Cornick & Co., bankers, and in that way he received payment. . It appears, further, that Medhurst was also doing-business for himself and on his own account; that in one transaction, unconnected with the business of plaintiff, the defendant paid him about $10,000 as his share of the proceeds, and that defendant had great confidence in the financial ability, business capacity, and integrity of Medhurst, although he had never known him until he took charge of the appellant’s business, nearly three years before the note sued on was given. Under these circumstances, it appears, Medhurst called at defendant’s office during business hours, and said to him, as defendant testified, that he wanted defendant to do him a favor; that Cohen, "Watten-wiler and himself had been negotiating- for the Hecla mine in Montana; that the expenses of the negotiation amounted
“3rd February, 1882,
Salt Lake City, Utah.
“Six months after date, for value received, I promise to pay to F. Medhurst, Commercial Director, or order, the sum of seven thousand dollars ($7,000) together with interest at the rate of ten (10) per cent, per annum.
E. Mackintosh.”
“3rd February, 1882,
Salt Lake City, Utah.
“Six months after date, for value received, I promise to pay E. Mackintosh, or order, the sum of seven thousand dollars, ($7.000), together with interest at the rate of ten (10) per cent, per annum.
“F. Medhubst, Com.”
“3rd February, 1882,
Salt Lake City, Utah.
“My Deab Mackintosh:
The object of the present is to state that you have this day given me, as a personal obligation to myself, your note of $7,000, payable in six months, together with interest at rate of ten per cent, per annum, and not for value received, said note being given in exchange for one of mine of like amount, term, and interest; and I hereby pledge myself not to discount or in any way make use of your said note; and thank you for the favor conferred,
F. Medhubst.”
. It is claimed, also, that the $1,500 check was a part of the transaction in which the notes were exchanged and the letter was given. The check is as follows:
“No. 2776. Salt Lake City, Utah.
February 4, 1882.
McCornick & Co., Bankers, Salt Lake City, Utah.
Pay to the order of Bichard Mackintosh, fifteen hundred dollars, ($1,500.) .
F. Medhubst, Com. Dir.”
This check bears date February 4, 1882, and its stub, produced by Fox, shows that the check was given on that day, and a deposit of it by Medhurst was made on the same day, as is testified to by Dooley, and as is shown by the deposit ticket, and the books of Wells, Fargo & Co.’s bank. The bank was near the place of the transaction, and it is probable that the deposit was made on the day the check was given. All of these dates indicate that the check was given on the 4th, and the dates on the notes exchanged and the letter are all on the 3d. Fox says, in answer to the question, “When was it you first saw this note of $7,000 as book-keeper of the company?” “I saw it, I think, the day after it was made — on the 4th of February.” To another question, he answered: “He gave it to me, and told me to put it in the safe, and it was not to be negotiated.” To the question, “Do you remember the' transaction in which this note was given that is sued on?” He answered: “No, sir; I don’t remember only as it is indicated on the books.”
After defendant had stated the transaction in his testimony without mentioning the check, he stated further, Medhurst “told Fox in my presence, and I repeated it
We now come to the consideration of the evidence in support of the position that the note sued on was given to F. Medhurst personally. The note given in exchange for this note was Medhurst’s personal undertaking. This fact furnishes a very strong presumption that the note he received in exchange was his own. In Bank v. French, 21 Pick., 486, 82 Amer. Dec., 280, the court say: “The principle is that the promise must be understood according to the intention of the parties. If, in truth, it be an undertaking to the corporation, whether a right or wrong name, whether the name of the corporation or some of its
I am of tbe opinion that tbe court below was right in finding that tbe note in suit was made and delivered to Medhurst personally for bis accommodation, and without consideration.
Concurring Opinion
(concurring.)
I concur with my brother Boreman that, under tbe circumstances of this case, tbe plaintiff is tbe payee of the note upon which this suit is brought. I am of opinion that tbe third finding of fact, that tbe note was given without- consideration, is not supported by tbe evidence. Tbe check for $1,500 must, in my judgment, be regarded as a consideration, to that extent, for tbe note. Tbe defendant made bis note to tbe plaintiff, and at tbe same time, and as part of tbe same transaction, be 'received the plaintiff’s check for $1,500, drawn by it on its funds in tbe bank, and be indorsed this check, and delivered it to Medhurst in a transaction which was purely personal between bim and Medhurst. Tbe transaction is the same as though defendant bad taken tbe check to tbe bank and drawn tbe money, and then delivered tbe money to Medhurst. It is true that Medhurst was tbe agent of plaintiff; and if the defendant bad made tbe entire transaction with Medhurst as agent, supposing and understanding that it was for tbe benefit of tbe plaintiff, and that be was dealing with it all the time, it would be different. But be gave bis note to tbe plaintiff, and received tbe plaintiff’s check, and indorsed it to
Reference
- Full Case Name
- SOCIETE DES MINES D'ARGENT ET FONDERIES DE BINGHAM v. RICHARD MACKINTOSH
- Status
- Published