Banca Italiana di Sconto v. Columbia Counter Co.

252 Mass. 552
CourtMassachusetts Supreme Judicial Court
DecidedMay 22, 1925
StatusPublished
Cited by13 cases

This text of 252 Mass. 552 (Banca Italiana di Sconto v. Columbia Counter Co.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banca Italiana di Sconto v. Columbia Counter Co., 252 Mass. 552 (Mass. 1925).

Opinion

Crosby, J.

This is an action on a promissory note, brought by an indorsee against the defendant. The note was written in the Italian language. According to the translated copy set forth in the record, it is dated February 29, 1920, payable to Joseph Alinovi, at the Prudential Trust Company in Boston, and purports to be signed “Columbia Counter Company, Charles D. Malaguti, President.” It was indorsed by the payee to the order of the plaintiff. At the trial it was agreed that February 29, 1920, was Sunday.

The defendant denied making the instrument and contended that it was a forgery; it also denied that Malaguti had any authority to sign it for the defendant; that being dated on Sunday, it was void; that it was without consideration; and that the plaintiff was not a purchaser for value. The case was tried with a second action brought by the plaintiff against Malaguti personally, wherein it was alleged that he was not authorized to make the note and damages were sought for such alleged unauthorized act. The jury found for the plaintiff in the first case and for the defendant in the second.

[557]*557At the date of the note and previously thereto Alinovi, the payee, was a manufacturer of shoes in Parma, Italy. The defendant is a Massachusetts corporation dealing in shoe supplies, shoe counters and upper leather, with a place of business in Boston. There was evidence tending to show that in August and September, 1919, the defendant sold and shipped to Alinovi forty-one cases of leather, amounting in all to about $100,000; that one of these shipments was invoiced at $17,566.20, and another at $6,024.35, the two together ($23,590.55) being the exact amount of the note in suit; that in the shipments there were certain goods not ordered; that Alinovi accepted those that conformed to his order, rejected the rest, and notified the defendant that the latter were held in his storehouse subject to its order. There was further evidence to show that to get the goods ordered, it was necessary for Alinovi to pay a draft for the entire lot, which he did. He testified by deposition that he requested Malaguti for payment of the leather which was not ordered; that the latter replied he did not have the money but would send it through the defendant’s representatives in Milan, Antonioli and De Pol, by draft for the amount covering the rejected leather; that the instrument in question, which seems by the parties to have been considered as a draft, was delivered to Alinovi by De Pol in March, 1920; that he indorsed it (it being agreed that it is a promissory note in form) and delivered it to the plaintiff at Parma; that it was discounted by the plaintiff and the proceeds were credited to Alinovi’s account.

Upon the question whether the note was a forgery, the jury could have found that the statement, in the letter written by Malaguti to the Old Colony Trust Company, dated June 5, 1920, as follows, “beg to say that the 90 day draft dated Feb. 29, 1920 for $23,590.55 was made by the writer when he was in Italy on certain conditions,” was true; and also, from the expert testimony offered by the plaintiff, that the note was in Malaguti’s handwriting. It is plain upon the foregoing and all the evidence that he could have been found to have made the note, notwithstanding his testimony to the contrary.

[558]*558The undisputed evidence showed that Malaguti was the president of the defendant company in February, 1920, and had held that office for several years previously; that he and one Hood and one Tapian owned all the stock of the corporation at that time except eight shares held by Barbara A. Wells, who was the bookkeeper and clerk of the corporation; that Malaguti was also assistant treasurer at that time, and that the board of directors consisted of himself, Hood and Miss Wells. The by-laws provided that the business of the corporation should be managed and conducted by the president, board of directors, the clerk and the treasurer; that the treasurer should sign all instruments in writing, including notes for the payment of money; that the assistant treasurer should have power to perform the duties of the treasurer when the latter was absent or unable to act.

The question whether Malaguti had original authority to execute and deliver the note need not be considered, as it is plain there was evidence from which it could have been found that he made it and that his act was ratified by the corporation. There was evidence that, after the sales hereinbefore referred to had been made by the defendant and Afinovi had rejected a portion of the leather, Hood, a stockholder and director, wrote to Afinovi that he would be credited for all merchandise he was not able to use; that Malaguti was the only one in the company who spoke Italian; that letters written by him to Afinovi bore the heading “Export Department Charles D. Malaguti”; that when it was necessary for any one to go to Italy to represent the defendant, he went; that when he came back in March, 1920, he told Hood, Miss Wells and Tapian (who had become a stockholder in 1920) “all he had done over there; . . . that upon his return he reported to the directors about the Italian business that the company was interested in”; and “told his partners about the talk with Afinovi.”

Miss Wells testified that she “knew about everything that went on”; that she understood there were goods that Afinovi did not take but that she had no definite knowledge of it. Hood testified that he knew about Malaguti’s trip to Italy on business for the company and when he came back he [559]*559told him what he had done. This witness also testified that he protested to Malaguti “in regard to his signature upon the note.” The jury could have disregarded what he said respecting the note and found upon his testimony and other evidence and the reasonable inferences to be drawn therefrom that the execution and delivery of the note by Malaguti were ratified by the managing officers of the company as well as by its stockholders and directors. It was not necessary that such ratification should be by a formal vote. It was sufficient if the corporation, acting through its proper officers, knew that the note had been given in settlement of Alinovi’s claim against it, and assented thereto. Whether there was a ratification by the corporation was a question of fact for the jury. Nims v. Mount Hermon Boys’ School, 160 Mass. 177, 182.

Alinovi, having paid the draft in full, was entitled to a rebate of so much as represented goods that he did not order; and since Malaguti had promised to reimburse him for that amount, the giving of the note in question is susceptible of the construction that it was in substance merely paying what, as between Alinovi and the defendant, was due; and that it was the defendant’s own debt which was thereby extinguished.

It was not contended that the act of the president was fraudulent or that he profited personally by the transaction. What was done was for the manifest benefit of the company, and resulted in an extension of time for the payment of what could have been found to be a debt of the corporation.

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Cite This Page — Counsel Stack

Bluebook (online)
252 Mass. 552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banca-italiana-di-sconto-v-columbia-counter-co-mass-1925.