Booth v. Storrs

54 Ill. 472
CourtIllinois Supreme Court
DecidedSeptember 15, 1870
StatusPublished
Cited by2 cases

This text of 54 Ill. 472 (Booth v. Storrs) is published on Counsel Stack Legal Research, covering Illinois 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. Storrs, 54 Ill. 472 (Ill. 1870).

Opinion

Mr. Justice McAllister

delivered the opinion of the Court:

This was an action of assumpsit, brought to the June term, 1870, of the Superior Court of Chicago, by appellees, as assignees, against appellant, as assignor and guarantor of a promissory note made by Barnum, Mason & Co. bearing date at Chicago, August 2, 1869, whereby they, nine months after date, for value received, promised to pay to the order of appellant, the sum of $176.66, at Manufacturers' National Bank, Chicago, with interest at seven per cent, and endorsed by appellant.

The declaration contains three counts, the first two of which set out the contract and liability of the assignor, alleging that the institution of a suit against the makers would have been unavailing, on account of their insolvency, and the third count seeks to charge appellant as guarantor.

Appellant filed the general issue, with affidavit of merits, to the whole declaration, and to the first two counts against him, as assignor, the following special plea:

Special plea to first and second counts alleges that Barnum, Mason <& Co. when they made the note described in said counts, were possessed of goods, wares and merchandise, book accounts, and choses in action, amounting to $18,000; that on December 17, 1869, and before those notes became due, they committed sundry acts of bankruptcy; that a petition was filed against them by certain of their creditors, in the district court United States, Northern district of Illinois; that January 26, 1870, they were declared bankrupts, and the marshal of the United States, by virtue of a warrant issuing out of that court, seized and took possession of their property; that, April 12, 1870, an assignee was elected by the creditors of Barnum, Mason & Staring, who duly qualified and took charge of their property and assets, and now holds the property and effects for the benefit of the creditors of said Barnum, Mason & Staring; that plaintiffs have not used the diligence to recover of Barnum, Mason & Staring the amount of the note by the institution of a suit against them; that the plaintiffs were creditors of Barnum, Mason & Co. and when the note became due, and before any dividend had been declared or paid by the assignee of said Barnum, Mason & Staring, did not, nor would, prove the same in the said United States court, as provided for by the act of congress, and did not, nor would, in any way or manner, endeavor to avail themselves of the dividends of the proceeds which would arise out of the estate of said bankrupts; that had they, or would they, prove their claim in said bankrupt proceedings, they would realise sufficient to pay the greater part of their said note.

To this plea appellees interposed a general demurrer, which was sustained by the court.

Appellant filed another special plea to all the counts, in substance as follows: That, before the time of the making of said note and endorsement in the declaration mentioned, and on the twenty-second day of July, 1869, a firm doing business under the name of C. A. &. C. H. Barnum & Co. were largely indebted to divers firms, etc.- in the city and State of New York, among whom were the appellees, to whom they owed $1200, and which they were unable to pay, they being insolvent; that, on the day aforesaid, at said city of New York, appellees entered into an agreement, in writing, with said Barnum & Co. whereby appellees agreed with Barnum & Co. in consideration of their insolvency, and that C. A. Barnum, J. D. Mason and J. B. Staring, members of said firm, would make their promissory notes for fifty per cent of said claim, maturing in six, nine and twelve months after date, with seven per cent interest, and procure appellant to endorse the same, they, the appellees, would accept and receive the said notes in full satisfaction and payment of said claim; that Barnum & Co. afterwards, and on the second of August, 1869, in pursuance of said agreement, made and executed these notes, among which was the said note in said declaration mentioned, and appellant endorsed them, and they were delivered by said firm to appellees, in the city and State of New York, and appellees accepted them on account of said claim, and for no other purpose whatever; that, in pursuance of the terms of said agreement, appellant contracted and assumed, with appellees, the liabilities of an accommodation endorser; that said contract of endorsement was made in said city of New York, where the same was delivered to and accepted by appellees, in manner aforesaid, for the purposes aforesaid, and not in the State of Illinois, as alleged in the declaration; that, at the time the notes were made and became due, the law merchant was in force in the State of New York, requiring the holder of a note so endorsed, in order to fix the liability of the endorser, to demand payment of the maker, and if not paid, to notify the endorser of such demand and non-payment; that, when the notes had become due, demand of payment was made at the place where these notes were payable, and payment was refused; but no notice of such demand and non-payment was given to appellant.

To this plea, appellees replied, that the contract of endorsement was made, and said note "delivered to, and accepted by, appellees, in the State of Illinois, and not in the State of New York.

On the twenty-fifth of June, 1870, one of appellees’ attorneys filed his affidavit in the cause, that he believed that the defense in said cause was made for delay, and served appellant’s attorney with a copy, and notice that the cause would be brought on for trial on the thirtieth, same month. The court not being in session on that day, and, by stipulation, it was agreed by counsel that said notice of trial be considered as for the fifth of July, 1870, of that term. On the latter day, appellant’s counsel objected to the trial of the cause out of its order, and filed his own affidavit to prevent such trial, stating, among other things, the agreement made in the city of New York, as stated in the second special plea, the making of the note sued on, with others, in pursuance thereof; that the same was made and endorsed by appellant, to be taken to New York by the makers, and there delivered, upon settlement or compromise being made with appellees; that affiant had been informed by appellant and one of the makers, and he also believed, that said note, with the others, was taken to New York by one of the makers, and there delivered. Affiant also stated in his affidavit, that, at the time of the notice, appellant was out of the State of Illinois, and in California, and still was, and for that reason could not make the affidavit. It set out the laws of New York respecting the liability of endorsers, and noncompliance with those laws on the part of appellees, and that he believed the defense was made in good faith.

The court, notwithstanding this affidavit, allowed appellees’ attorneys to bring said cause on for trial, out of its order on the docket, and in the absence of appellant; to which his counsel excepted, and preserved these matters in a bill of exceptions. There was a verdict for appellees, upon which the court entered judgment, and appellant brings the case to this court by appeal, and assigns for error, among other grounds, the decision of the court below in sustaining the demurrer to his first special plea, and in ordering said case to be tried out of its order, as above stated.

We think there was no error in sustaining the demurrer to the first special plea.

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Mason v. Mandl
24 Ill. App. 154 (Appellate Court of Illinois, 1887)
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85 Ill. 146 (Illinois Supreme Court, 1877)

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Bluebook (online)
54 Ill. 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/booth-v-storrs-ill-1870.