Clapp v. Rice

79 Mass. 403
CourtMassachusetts Supreme Judicial Court
DecidedSeptember 15, 1859
StatusPublished

This text of 79 Mass. 403 (Clapp v. Rice) 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
Clapp v. Rice, 79 Mass. 403 (Mass. 1859).

Opinion

Hoar, J.

This case comes before us upon exceptions to a pro forma ruling of the judge before whom it was tried in the court of common pleas, that the plaintiffs were entitled to recover upon the facts appearing at the trial. The plaintiffs claimed contribution toward the payment of a promissory note which they had paid to the Franklin County Bank. The note was made by the Troy and Greenfield Railroad Company, and signed by W. T. Davis, the treasurer of the company, payable to the order of W. T. Davis, treasurer, and bore upon its back the indorsement of W. T. Davis, treasurer, and the names of the plaintiffs and of the defendants’ intestate. The names of two of the plaintiffs appear before that of the defendants’ intestate, and the name of the third follows it upon the back of the note. It appeared in evidence that the note was written and signed by Davis, the treasurer, and then, before it was indorsed by him, was sent in succession to the other parties, who placed their names upon it, in order to enable the railroad company to procure it to be discounted by the Franklin County Bank. After they had written their names upon it, he indorsed it as treasurer, above their signatures. It was then discounted by the bank, and was paid by the plaintiffs, upon the failure of the maker to pay it at maturity.

Upon these facts, the plaintiffs contend that the defendants’ intestate was liable with them as a joint original promisor upon the note.

It is settled by a series of decisions in this Commonwealth [404]*404that where a person not a party to a note puts his name upon it before it is delivered as a valid contract, he thereby makes himself an original promisor. The correctness of these decisions, however much they may be obnoxious to criticism upon principle, it is too late to question. They have formed an established rule for the construction of that class of contracts in Massachusetts, which cannot now be disturbed without manifest injustice.

But the doctrine is somewhat anomalous, and is not to be extended beyond the line of adjudged cases. When this note was first passed to any holder for value, so as to make it a valid contract, it was indorsed by W. T. Davis, treasurer, to whose order it was payable. It was therefore never a contract by which the plaintiffs were holden to Davis or to the railroad company. Their names were put upon it, with the obvious understanding and expectation that it would be indorsed by Davis before it should be negotiated. By his indorsement above their names, it was made, in form and effect, an indorsed note, with successive indorsements following. The bank took it in this form, complete and effectual, when it first had any validity; and it has been settled in the recent case of Prescott Bank v. Caverly, 7 Gray, 217, that under such circumstances it is not competent for the person whose name appears upon the note as an indorser, to show, by paroi evidence, that his contract was different from that which such a signature ordinarily imports. See also Bigelow v. Colton, ante, 309; Lake v. Stetson, ante, 310 note.

In Peirce v. Mann, 17 Pick. 244, where the payee and owner of a negotiable note procured a third person to put his name upon the back of the note, in order to enable him to use it in payment of a debt, and, after the name was placed upon it, indorsed it himself above the signature of such person, it was held, that the latter was only liable as indorser ; and the court said: “ It is not unusual, in business, for a third person to indorse a note before it is indorsed by the payee, who is to put his name upon it at the time when it is discounted.” We do not think it material in what order of time the several parties to a note' affix then- signatures, provided they are all placed [405]*405upon it when it is first issued as a complete contract. When the paper upon which the plaintiffs’ claim arises first became of any validity as a promissory note, the plaintiffs and the intestate were parties to it; and the cases cited of signatures by a person not a party have therefore no application. The decision of the court below was consequently erroneous and there must be a new trial.

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Related

Phillips v. Preston
46 U.S. 278 (Supreme Court, 1846)
Moore v. . Cross
19 N.Y. 227 (New York Court of Appeals, 1859)
Pitkin v. Flanagan
23 Vt. 160 (Supreme Court of Vermont, 1851)

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Bluebook (online)
79 Mass. 403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clapp-v-rice-mass-1859.