Bassett v. Lederer

3 Thomp. & Cook 671, 8 N.Y. Sup. Ct. 274
CourtNew York Supreme Court
DecidedMay 15, 1874
StatusPublished

This text of 3 Thomp. & Cook 671 (Bassett v. Lederer) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bassett v. Lederer, 3 Thomp. & Cook 671, 8 N.Y. Sup. Ct. 274 (N.Y. Super. Ct. 1874).

Opinion

Daniels, J.

As the plaintiff has appealed from both the judgment and the order denying his motion for a new trial, all the questions presented by the case, as well as the exceptions taken, are [672]*672properly before the court. If, upon any ground, the plaintiff was improperly defeated in the action, a new trial must, therefore, be directed in his favor.

The action was brought to recover the price of goods sold and delivered by the plaintiff to the defendant. The sale was made through the intervention of an agent, acting as a broker. The uncontroverted evidence, given upon the trial, tended to show that the broker applied to the plaintiff for the purchase of the goods, representing that he had a customer who wanted them, and finally named the defendant as the person. That the plaintiff agreed to sell the goods to him, and he afterward sent them to his store by a carman in the plaintiff’s employment, who delivered them there and took a receipt for them from the person there receiving them for the defendant. The person who signed the receipt was in the habit of doing almost every thing done in the store, and receiving and receipting for goods. Under this description of his duties, which was given by himself, no difficulty can exist in the way of the presumption that he was so far empowered to act for the defendant as to be authorized to bind him by signing receipts for goods delivered at the store in his behalf. This was apparently his ■authority, from the nature and character of his employment, and persons transacting business at the store had the right to presume that the fact, in that respect, corresponded with the existing indications of it.

This receipt contained the statement on its face that the goods received were from the plaintiff, and they were marked for the defendant. The person receiving the goods, and who signed the receipt for them, was the defendant’s brother. In his testimony he stated that he did not notice that portion of the receipt which contained the statement that the goods were from the plaintiff. But even though he failed to do that, as the statement accompanied the goods, and was sent with them by the plaintiff for the purpose of showing the defendant or the person in his employment receiving them in his behalf, that they were from the plaintiff, it was notice of the existence of that fact, and the circumstance that the defendant’s clerk neglected to so far notice the contents of the receipt as to discover the statement made on that subject cannot be permitted to prejudice the plaintiff’s demand. He discharged his duty, so far as it concerned that act, by sending the notice with the goods, and causing it to be presented to the person receiving them for the de[673]*673fendant at the time of their delivery. That was the natural as well as ordinary form which would be expected to be given to such an instrument attending a transaction like that which occurred when the goods were delivered. A receipt merely stating that the goods themselves were received, without any mention of the person sending them, would be of so incomplete and indefinite a nature as to be of but little use in the transaction of mercantile or even any other description of business. Such instruments might as well be omitted as preserved, so far as any real, permanent, practical benefit could be expected to be secured from them. The habits and course of business sanction the use of the form adopted, as evidence that the plaintiff delivered these goods to the defendant; and a moment’s reflection would have satisfied the person actually receiving them for him, that information of that fact would probably be found in it. He was negligent in not examining the receipt and discovering the fact. The consequences of that negligence, so far as they may prove important in this case, as he was the defendant’s servant, must be borne by him and not by the plaintiff. By the acts which were performed the notice was brought immediately under his observation, and he failed to discover it by simple inattention ; and that, too, when the nature of the business and the purposes of the receipt led directly to the conclusion that the name of the person from whom the goods came would be found in it as a portion of its ordinary and appropriate contents. Other persons in the transaction of their own business may have often been equally careless; but, if the fact were so, it would form no protection for the defendant against the direct consequences of such an omission.

If a reasonable degree of attention had been given to the contents of the receipt by the person who received the goods and signed it, the fact would have been at once discovered that they came from the plaintiff, and that would have suggested the probability that he, and not the broker, was the vendor in the sale made of them. That would have been enough to stimulate such an inquiry into the truth of the business, as in the end would have operated as a full protection againt the broker’s fraudulent devices. Having such means at hand for the discovery of the truth, and neglecting to make use of them, is attended with the same legal results as the knowledge Avhich a proper investigation would have secured. And that would have deprived the defendant of all pretense that he was a bona fide purchaser of the goods from the broker as their vendor. The rule [674]*674laid down by the Chancellor is, that “ whenever the purchaser has sufficient to put him on inquiry, he is in equity considered as having notice; and in such a case will not be deemed a bond fide purchaser.” Pendleton v. Fay, 4 Paige, 202, 205. And that principle, as one of general application, was maintained in ■ Williamson v. Brown, 15 N. Y. 354. And for that purpose, placing knowledge of the fact under the immediate observation of the defendant’s clerk, as it was when the receipt was presented to him for his signature as a portion of the transaction in, which he was acting for his principal, was in legal effect the same so far as the latter is concerned, as though he himself and not his agent had acted in the business. There is no difference between personal and constructive notice when the latter results from the transaction in which the agent is acting for his principal. Bank of U. S. v. Davis, 2 Hill, 452, 461. That this receipt might reasonably have been supposed to contain a statement of the name of the person selling the goods is shown by the evidence which the defendant himself gave as a witness in his own behalf. For he testified that receipts given on the delivery of goods generally state from whom they come.

After the terms of the sale had been agreed upon between the plaintiff and the broker — acting, as it was supposed by the former, for the defendant — he delivered an invoice to the broker, stating the sale by the plaintiff to the defendant, and the goods themselves, with the receipt to be taken to his own carman to be delivered to the defendant. Nothing whatever was delivered to the broker by the plaintiff, showing him to have any interest in or right of disposition over the goods. He did not put it in the broker’s power to deceive the defendant and induce him to purchase the goods under the belief that they were the broker’s property. Oif the contrary, he took every reasonable precaution to avoid the possibility of deception in that respect, for he withheld the possession from the broker, sent them to the purchaser by his own agent, with a receipt to be taken showing the source from which they came.

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Bluebook (online)
3 Thomp. & Cook 671, 8 N.Y. Sup. Ct. 274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bassett-v-lederer-nysupct-1874.