Cady v. Shepherd

28 Mass. 400
CourtMassachusetts Supreme Judicial Court
DecidedSeptember 27, 1830
StatusPublished
Cited by2 cases

This text of 28 Mass. 400 (Cady v. Shepherd) 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
Cady v. Shepherd, 28 Mass. 400 (Mass. 1830).

Opinion

Wilde J.

afterward drew up the opinion of the Court. This is an action of debt, on a joint contract under seal, which is averred to be the deed of the two defendants. On the trial it appeared, that at the time the deed was executed, the defendants were partners in the business of manufacturing -woollen cloths, and that the contract in question was made with the plaintiff by Shepherd, the acting partner, for the purpose of procuring a supply of wool for the use of the factory ; that it was signed by him in the name of the firm, and a seal affixed, Robbins, the other defendant, not being present. There was no evidence of assent by Robbins in writing, but parol evidence was admitted tending to show that he did in fact consent to the contract, or that after it was made he adopted and ratified it, knowing its terms and import. The jury were instructed, that if upon the whole evidence arising from the connexion as partners, and all the facts proved, they were satisfied that Robbins had read the contract and assented to it, or had been informed of a part of its contents and might have informed himself of its whole contents, yet nevertheless assented to it without further inquiry, they should find for the plaintiff. To this direction the defendants’ counsel except.

That a partner has not a general authority to bind his co-partner, by a contract under seal, without his previous assent or subsequent adoption, seems to be well settled by the current of the authorities, both in England and in this country. A most decisive opinion to this effect was given by Lord Kenyon in the case of Harrison v. Jackson, 7 T. R. 207, which has been followed in subsequent decisions with very little discussion, although a contrary doctrine had been advanced by Lord Mansfield, in the case of Mears v. Seracold, and a like doctrine was adopted by Sir Thomas Plumer in the case of Orr v. Chase, 1 Mer. 729. It is remarked by the American editor of the last London edition of Gow on Partnership, (p. 83,) that the case of Orr v. Chase is contrary to established doctrine ; and the remark appears to be borne out [411]*411by a series of judicial decisions, which we are not at liberty to disregard, although they do not seem to be supported by any very cogent or satisfactory reasons. 10 East, (Amer. edit.) 427, in notis.

Lord Kenyon remarks, in the case of Harrison v. Jackson, “ that it would be a most alarming doctrine to hold out to the mercantile world, that one partner had an authority to bind the others, which would extend to the case of mortgages, and would enable a partner to give to a favorite creditor a real lien on the estates of the other partners.” Whatever weight there may be in this consideration as the law relating to debtor and creditor is in England, little importance can be attached to it here, as by our laws a creditor of a firm may, on any contract, acquire by attachment a lien on the real estate of all or any of the partners. The decisions referred to, therefore, would seem to be founded altogether on a positive rigid rule of the common law in relation to deeds, which cannot fail frequently very much to embarrass the dealings of partners ; and it ought for that reason to be confined to its strictest limits.

But admitting the rule as laid down by Lord Kenyon and confirmed by subsequent decisions, we cannot perceive that it clashes at all with the instructions given to the jury in this case. The principle assumed and acted upon at the trial was, that although Shepherd derived no authority from Robbins, from his relation to him as copartner, to bind him by a contract under seal against his will, yet if Robbins consented to the contract before it was signed by Shepherd, or afterwards adopted it knowing its import, it would bind him. And this principle appears to be well supported by modern decisions, which I will refer to very briefly.

In the cáse of Ball v. Dunsterville, 4 T. R. 313, it was decided, that if a partner seal a deed with one seal for and on behalf of himself and his copartner, and by the authority and in the presence of the other, it is a good execution of the deed for both. The same principle was admitted as settled law two centuries since, in Lord Lovelace's case, W. Jones, 268. It was there laid down, that “If one of the officers of the forest put one seal to the rolls, by assent of all the verderers, regarders and other officers, it is as good as if every one had put [412]*412his several seal ; as in case divers men enter into an obligation, and they all consent, and set but one seal to it, it is a good obligation of them all.” The same rule of law was admitted in the case of Ludlow v. Simond, 2 Caines’s Cas. in Er. 42.

In the case of Brutton v. Burton, 1 Chit. Rep. 707, it was decided that a warrant of attorney under seal, executed by one person for himself and his partner, in the absence of the latter, but with his consent, is a sufficient authority for signing judgment against both.

In the case of Ball v. Dunsterville some importance seems to have been attached to the circumstance, that both partners were present when the deed was executed ; and it may be important, as being the most satisfactory proof of the assent of the non-subscribing partner ; but in no other respect does it appear to be material.

In the case of Mackay v. Bloodgood, 9 Johns. R. 285, the decision was substantially the same as that of Brutton v. Burton. The case of Mackay v. Bloodgood, .was on an arbitration bond, and it appeared in evidence that the bond was executed in the name of the firm, with one seal only affixed, by one of the partners, with the consent of the oth» r, who had before seen and approved of the bond, and who v as about the store at the time of the execution, but was not actually present where- the bond was executed. It was contended that a partner could not bind his copartner by deed, unless he is authorized by deed ; but it was decided, that the bond was binding on both partners. The circumstance that the partner who did not execute the bond, was about the store at the time the bond was executed, is noticed by the court, but we cannot perceive how it could in any way affect the decision of the case.

The principle assumed in these cases is strongly supported by the decision in the case of Skinner v. Dayton et al., 19 Johns. R. 513. The point in question was in that case very fully and ably discussed and considered ; and it was decided, that although one partner could not bind his copartner by deed or writing under seal, without an express authority for that purpose ; yet that such authority may be by parol, and if shown, or if the other partner had, by his subsequent assent or [413]*413acts, ratified the contract, he would be equally responsible w’th the partner who executed the contract. “ Both at law and in equity,” says Spencer C. J., “ the subsequent assent of the principal to the act of an agent, in relation to the interest and affairs of the principal, is equivalent to a positive and direct authorization to do the act ”— “ such subsequent assent is an adoption of the act of the agent.”

The same principle as to the retroactive effect of a ratification of a contract, is maintained in the case of Randall v. Van Vechten et al., 19 Johns. R. 60, and in the case of Bank of Columbia v. Patterson’s adm’r, 7 Cranch, 297.

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