Central Soya Company, Inc. v. Henderson

208 A.2d 110, 99 R.I. 388, 1965 R.I. LEXIS 451
CourtSupreme Court of Rhode Island
DecidedMarch 16, 1965
DocketEx. No. 10690
StatusPublished
Cited by7 cases

This text of 208 A.2d 110 (Central Soya Company, Inc. v. Henderson) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Soya Company, Inc. v. Henderson, 208 A.2d 110, 99 R.I. 388, 1965 R.I. LEXIS 451 (R.I. 1965).

Opinion

*389 Roberts, J.

This action in assumpsit was brought to recover from the defendants, as guarantors, a portion of the indebtedness of the principal debtor. The matter was tried to a justice of the superior court sitting with a jury, who denied the plaintiff’s motion for a directed verdict. The jury then returned a verdict for the plaintiff in the amount of $15,000. The trial justice thereafter denied the defendants’ motion for a new trial and denied the plaintiff’s motion for the entry of judgment notwithstanding the verdict but granted its alternate motion for a new trial on the question of damages subject to- the defendants’ consent to an additur. The plaintiff and the defendants are now in this court prosecuting their respective bills of exceptions.

The record discloses that for some time prior to 1960 defendants were engaged in raising poultry for market, the ■business .being incorporated as Shore Road Live Poultry Company, hereinafter referred to as Shore Road. It further appears that in the conduct of that business they occasionally purchased feed from C. Fred Lincoln, hereinafter referred to as Lincoln, who conducted a grain business in Mystic, Connecticut. The defendants concede that in August 1960 they executed an agreement in writing which on its face purports to guarantee the payment to plaintiff, a manufacturer of poultry feeds, of the indebtedness of Lincoln up to the amount of $30,000.

At the opening of trial defendants were granted permis *390 sion to plead specially to the declaration out of time. The special plea alleged, in substance, that defendants executed the instant agreement pursuant to- an understanding that they were guaranteeing the indebtedness of Shore Road; that at the time of such execution the identity of the principal debtor had not been set out in the instrument; that when plaintiff came into possession of the instrument it wrongfully inserted the name of Lincoln as the principal debtor; and that defendants did not become aware of this substitution of the principal debtor until after April 5, 1963. The defendants thus .put into issue the question whether they had, in executing the instrument, intended to become liable for the indebtedness of Lincoln in the amount stated therein.

To prove the amount of indebtedness of Lincoln, plaintiff put into evidence thirty-seven trade acceptances, so called, each of which on its face disclosed acceptance by Lincoln. Each such trade acceptance appears to be payable ninety days after its date of execution and, excepting the first in chronological order, bears no indicia of payment, demand or dishonor. The one acceptance referred to above- has on its face a penciled notation which, according to subsequent testimony, reflects a credit for part payment thereof. This testimony was also to the effect that whenever payments were made on the Lincoln account, they would be credited to the oldest outstanding trade acceptance.

Evidence to establish the amount of the principal indebtedness was adduced through Charles F. Sullivan, who testified that he was employed by plaintiff as a credit manager, in which capacity he supervised accounts of plaintiff's customers in the eastern division, so called. He testified further that he was -familiar with the credit rating and condition of all accounts under his supervision and that all of the trade acceptances put into evidence remained unpaid. Refreshing his recollection by reference to a summary of *391 the items contained in the Lincoln account, he testified that the total amount of the indebtedness was $64,065.08 and that no payments had been made by defendants on the principal indebtedness.

The defendants argue that it was error to admit the trade acceptances into evidence in that it violated the best evidence rule. They contend that the amount of the principal indebtedness to which the guarantee applies ought to be proved by plaintiff’s books of account wherein would be disclosed evidence of payments as well as the balance due thereon. The pertinence of the best evidence rule frequently depends upon the posture in which the claim of the plaintiff is presented. In cases for the enforcement of guarantee contracts, it is the obligation of the plaintiff to establish clearly the amount of the principal indebtedness to which it contends the guarantee has application.

Because we take the view that these trade acceptances were the original records of the indebtedness alleged to be guaranteed by defendants, their admission did not violate the best evidence rule. The situation here is not identical with that in Edward Wilkinson & Co. v. Universal Safety Ash Tray Co., R. I., 133 Atl. 658. The evidence proffered in that case consisted of time sheets, the content of which was data copied from time cards of employees. In this case the trade acceptances reasonably may be equated with the missing time cards in that case.

During cross-examination the witness Sullivan disclosed that he had corresponded with defendants and that he had in his possession at his motel records of plaintiff’s dealings in pertinent matters. He testified further that plaintiff employed J. Mark Rieser as a salesman, who in the eastern division engaged in promotional work among poultry raisers in behalf of plaintiff’s product. After plaintiff rested, on defendants’ motion a subpoena duces tecum issued requiring plaintiff to produce certain correspondence, the petition for *392 the subpoena specifying four classes of correspondence sought. The subpoena was quashed on the motion of plaintiff. The defendants summoned Rieser, and during his examination the court sustained numerous objections to the introduction of correspondence and to allegedly leading questions put to Rieser by defendants. The defendants now prosecute exceptions to the rulings of the court which precluded such interrogation of Rieser by way of leading questions and to the ruling of the court quashing the subpoena duces tecum in its entirety.

The defendants sought to introduce two letters sent them by Rieser which, on plaintiff’s objection, were excluded. The first of these was dated May 20, 1961 and was marked as defendants’ exhibit B for identification. Therein Rieser stated: “We will instruct our Harrisburg office to carry Thomas A. Henderson III, T. A. Shore Road Poultry Co., as a commercial account. * * * We will issue you weekly quotations on our Rooster and Broiler feeds, and we will bill you from signed delivery receipts furnished to us by the Lincoln Grain Co., Mystic, Conn. It will be your responsibility to be certain you receive what you sign for on the delivery receipt. So, be certain to have your farmers check these deliveries. You will also be billed on the price sheet in effect on the date you receive the feed. If there should be any errors in the billing of this feed, kindly notify me at once, and I will see that the error is corrected. * * * y¡re wiH maintain monthly tonnage records on your entire account. This will cover shipments to your own farms, as well as customers you may secure for us. As a commercial acct., you will receive monthly payments, on this combined tonnage, of $2.00 per ton. As a commercial acct., you will also' enjoy dealer privileges of booking feed requirements when we feel it will be advantageous to you.

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Bluebook (online)
208 A.2d 110, 99 R.I. 388, 1965 R.I. LEXIS 451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-soya-company-inc-v-henderson-ri-1965.