Booth v. Farmers' & Mechanics' National Bank

4 Lans. 301
CourtNew York Supreme Court
DecidedMay 15, 1871
StatusPublished
Cited by2 cases

This text of 4 Lans. 301 (Booth v. Farmers' & Mechanics' National Bank) 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
Booth v. Farmers' & Mechanics' National Bank, 4 Lans. 301 (N.Y. Super. Ct. 1871).

Opinion

[303]*303By the Court

Talcott, J.

This action is brought against the defendant upon an alleged liability of the Farmers’ and Mechanics’ Bank, of ¡Rochester, which became a national bank, by the name of the Farmers’ and Mechanics’ ¡National Bank, under the provisions of section 44, of the act of congress, providing for the organization of banking associations, approved June 3d, 1864 (13 U. S. Statutes, at Large, 99). Perhaps the most important question discussed by the counsel on the argument, was the question whether in such a case the liabilities of the pre-existing State bank, follow and attach upon the national bank, after it has complied with the act of congress, and became, in effect, a corporation chartered and regulated by the United States government. The entire omission from the act of congress of any express provision on the subject has, it must be conceded, left a question, the solution of which is not free from difficulty, but which, if the conclusions which we have arrived at on other points are correct, it is not necessary to determine in this case. The action is brought upon the allegation that the Farmers’ and Mechanics’ Bank, of ¡Rochester, recovered a judgment against Archibald McLean, Hector McLean, and Theodore S. Goddard, for $3,503.21, damages and costs, which was filed and docketed in the office of the clerk of Monroe county, in ¡December, 1860, which judgment the said bank sold and assigned to the plaintiff for a valuable consideration, in December, 1861; and that afterward the said bank, without the consent of the plaintiff, discharged the judgment of record. The complaint also contains a count for money had and received by the defendant in this suit to the use of the plaintiff. The plaintiff on the trial, after proving the recovery of the judgment, and the assignment thereof to him, introduced in evidence a satisfaction piece, which was entitled “ The Farmers’ and Mechanics’ Bank, of ¡Rochester, against Archibald H. McLean, Hector McLean, Theodore Goddard, and Charles L. Flint; ” the body of which was in these words: “I, Jacob Gould, president of said bank, acknowledge satisfaction of a judgment recovered against Charles L. Flint, and [304]*304others, in the Supreme Court, of the State of New York, between the Farmers’ and Mechanics’ Bank, of Rochester, plaintiff, and Archibald H. McLean, Hector McLean, Theodore Goddard, and Charles L. Flint, defendants, for $3,503.31, damages and costs. Judgment record filed and docketed the 29th day of December, one thousand eight hundred and sixty, in the county of Monroe. Dated the lltli day of April, 1864. J. Gould, president.”

This instrument correctly states the time of the docket of the judgment in question. As to the amount of the recovery i't varies in the sum of ten cents. The docket was produced and the judgment appeared to have been docketed against.the McLeans and Goddard, under their respective names; and in each instance they are stated in the docket to have been impleaded with Charles L. Flint. It appeared that no other judgment was docketed in that office against any of these parties. In a column headed “ when satisfied ” in the docket book, was an entry, as follows: “April 11th, 1864, S. P.” The letters “ S. P.” are supposed to mean “ satisfaction piece,” though •not explained.

After this proof the plaintiff offered to show that “ prior to the date of the satisfaction piece, the McLeans and Goddard were the owners in fee of certain real estate in the county of Monroe, which was subject to the lien of the said judgment; and after the discharge of said judgment “ by the entry of April 11th, 1864,” they sold and conveyed such real estate to a bona fide purchaser, who took the same without notice of any defect in the discharge of said judgment, and paid a valuable consideration therefor; and that the amount in value of such real estate was equal to the amount of said judgment.” This evidence was rejected, and the plaintiff excepted to the ruling, and, thereupon, rested his case. Whereupon the court, on a motion of the defendant, directed a nonsuit, to which the plaintiff also excepted.

It is to be observed, that these special damages were not alleged in the complaint, and that it was not offered to be shown that the McLeans and Goddard were insolvent, or had [305]*305not other sufficient property, real or personal, out of which the judgment might have been satisfied. No objection to the offer of evidence on either of these grounds appears to have been made on the trial, nor was any such presented on the argument at bar; and we, therefore, omit all consideration of those questions.

It is claimed that the satisfaction piece was prima facia evidence of money had and received by the Farmers’ and Mechanics’ Bank of Rochester, to the use of the plaintiff. Ordinarily it would, probably, be presumed that the execution, acknowledgment, and delivery of a satisfaction piece of a judgment was upon the receipt of the money; that being the only legal mode of satisfying a judgment for the payment of money, except by virtue of some special agreement, or other extraordinary circumstances; and we think, in the absence of any other explanation, such a satisfaction piece would, like a receipt for the money, signed by the plaintiff, be prima facie evidence against him of the receipt of the money in fact.

The serious objection to the evidence, as designed to sustain an action for money had and received by the Farmers’ and Mechanics’ Bank of Rochester, is, that the evidence of the plaintiff and his complaint show, that Jacob Gould, though president of the bank, had no right to receive the money. Though, in general, it would, probably, be presumed that the president of a bank has authority to receive money due to the bank, so that his receipt as such officer would be evidence of the fact of the receipt of the money, as against the bank, yet this presumption of authority must be confined to those acts which the bank itself could rightfully do. In this case, the bank, having absolutely assigned and transferred all its right, title, and interest in, to and under the judgment, had no right to collect it, or to receive the moneys due upon it; and the act of Jacob Gould, conceding he assumed to do it as president of the bank, being one which the bank itself could not rightfully do, was necessarily outside of any authority which could be presumed to be vested in the president; and, therefore, if we should assume that the satisfaction piece, as [306]*306against the bank, proved the fact that Gould had assumed to receive the money, when the other fact appears, namely, that the bank was not then the owner of, and had no interest in, the judgment, then the receipt by Gould would not, prima facie, establish the liability of the bank for the money. Neither would the receipt of Gould, in such a case, be evidence, as against the bank, of the fact of the receipt of the money by Gould.

The declarations and receipts of agents are evidence against the principal only where the declaration or receipt is part of some res gesta, in which the agent had, or it is to be presumed he had, authority to act for the alleged principal. There are many cases, it is true, where a corporation is made liable for the acts of its agents, which not only the agents themselves were unauthorized to do (Farmers’ and Mechanics' Bank v. Butcher s' and Drovers' Bank, 16 N. Y., 125), but which the corporation itself had no power to do. (Bank of Genesee v. The Patchin Bank, 13 id., 309; S.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bloch v. Bloch
136 A.D. 770 (Appellate Division of the Supreme Court of New York, 1910)
Crotty v. McKenzie
10 Jones & S. 192 (The Superior Court of New York City, 1877)

Cite This Page — Counsel Stack

Bluebook (online)
4 Lans. 301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/booth-v-farmers-mechanics-national-bank-nysupct-1871.