Coote ex rel. Jones v. Bank of the United States

6 F. Cas. 493, 3 D.C. 95, 3 Cranch 95
CourtU.S. Circuit Court for the District of District of Columbia
DecidedMay 15, 1827
StatusPublished
Cited by2 cases

This text of 6 F. Cas. 493 (Coote ex rel. Jones v. Bank of the United States) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coote ex rel. Jones v. Bank of the United States, 6 F. Cas. 493, 3 D.C. 95, 3 Cranch 95 (circtddc 1827).

Opinion

Cranch, C. J.,

delivered the opinion of the Court. This is a motion for a new trial, in an action for money paid, laid out, and expended by the plaintiffs for the defendants; and for money had and received by the defendants for the use of the plaintiffs.

The reasons alleged for a new trial are: 1st. Because the verdict is against evidence; 2d. Because new evidence has been discovered since the verdict; 3d» Misdirection of the jury by the court in matter of law.

1. The first reason has not been relied upon by the defendants’ counsel.

2. The supposed newly-discovered evidence is this, that on the defendants’ scratch-book, which is the original book of entry of deposits made in the bank, three sums, amounting to about $1000, were, at three several times in January, September, and October, 1818, entered in the name of Clement T.-Coote, and were posted in the leger to the credit of Clement T, Coote & Co.

This evidence was in the power of the defendants at the trial; and the ignorance of one of the officers of the bank, who was not the bookkeeper, is not sufficient ground for a new trial. If it were, there could never be an end of new trials. The bank could obtain them whenever they should desire; for it is hardly probable that there should not be found, some one of the numerous officers of that bank who was, at the time of the trial, ignorant of some fact which might be material in the cause.

But the evidence itself seems to be wholly unimportant; for the posting it to the credit of Coote & Co. is evidence that the officers of the bank understood it as being originally deposited to the credit of that company.

3. The principal ground relied upon by the defendants, in support of their motion for a new trial, is, that the court refused to instruct the jury as prayed by their counsel.

It appeared in evidence that the bank held a deposit to the credit of the firm of Clement T. Coote & Co., to the amount of [97]*97$500, which was money had and received by the bank for the irse of the plaintiffs, and which they have a right to recover in this action, -unless the bank have a right to charge them with the individual note of C. T. Coote, one of the plaintiffs, dated 21st September, 1818, for $200, payable 23d of November, 1818, and his individual check for $300, dated 29th September, 1818.

The entries of these debits in the bank-book of Clement T. Coote & Co., kept at the bank, appear to be post-entries, interpolated and crowded in between other entries previously made. The check for $300 appears to have been given to take up C. T. Coote’s individual note for that amount, previously discounted at the bank for his accommodation. The individual note of C. T. Coote, for $200, was charged'up in the joint account of Coote & Co.

Primd facie, the bank had no right to charge the note and check to that account, any more than they would have had to offset them against the joint demand of Coote & Co., if they had brought suit against the bank.

The burden of proof was on the bank, to show the assent of the other partner, or that the transaction was for joint account and benefit.

One partner has no right to draw the joint funds in his own name; he cannot lawfully appropriate the joint funds to his own use; he has only the right to use the joint name, and to act as and for the firm. When he receives joint goods, he receives them in the name of the firm. If he gives a receipt for them, he signs the name of the firm; if he verbally direct a payment to be made out of the joint funds, he does it in the name of the firm, and as representing the firm. His right, as a partner, is only to represent the firm, and to act in the name of the firm; as an individual, he has no authority over the partnership effects. If he act avowedly in his individual character, everybody knows that he cannot bind the firm; and every person who deals with him, ostensibly in his individual character, if he would charge the firm with his acts, must taire upon himself the burden of proving that, notwithstanding appearances to the contrary, he was acting for and on behalf of the firm, and for their account and benefit.

In the present case, the bank did undertake the burden of that proof; and, for that purpose, introduced Mr. Weightman, an officer of the bank, who testified that during the partnership, and while the joint funds were in the bank, to the credit of the firm, a note signed by C. T. Coote, in his own name only, fell due at the bank, and as Coote had no funds nor account there, [98]*98then, nor at the time when the entries of September 29, 1818, and November 23, 1818, were made in the bank-book of C. T. Coote & Co., the witness called on Mr. Coote, to know how the note was to be paid ; who said it was a partnership transaction, and that he intended the note to be paid out of the joint funds in the bank, and directed the witness so to do. That he had intended to put the partnership name to the note, but had, by mistake, put his own name only. That he might draw notes bichéeles in the same way again, that is, on partnership account, but in his own name only, by mistake, instead of that of the firm; but that if he should have no funds in the bank in his own name, as he should in all such cases draw such checks or notes on partnership account, and intending them to be paid out of the partnership funds, he would thank the witness and the gentlemen of the bank to pay them out of the funds of the concern; as they might, in such cases, take it for granted that they were drawn on partnership account.

Upon which evidence the defendants prayed the court to instruct the jury, in substance, that if they believed, from the said evidence, that Mr. Coote, at the time or before the said note and check were drawn, informed Mr. Weightman as above stated, then the plaintiffs are not entitled to recover, unless they can satisfy the jury that Mr. Coote drew the said note and checlt on his own account, and not on partnership account, and that tbp defendants or their officers knew, or had sufficient cause to know, that he so drew them; which instruction the court refused to give.

The question is, whether this testimony of Mr. Weightman shifted the burden of proof from the defendants to the plaintiffs. We think it did not.

The presumption arising from that testimony, that it was really and bond fide a joint transaction, is not, in our opinion, as strong as the presumption arising from the signature, and other circumstances stated in the evidence, that it was the individual transaction of Mr. Coote. And the instruction which the court ought to have given, if they h'ad given any, should have been, that, upon that evidence, the plaintiffs had a right to recover, unless the jury should be satisfied by the evidence, that the note and check were really drawn for the joint account.

All the cases cited are where the joint name was used, or where it was equivocal whether it were used or not. That circumstance throws the burden of proof on the party who wishes to show it to be the individual transaction of the partner who used the joint name. If the note and check, in the present case", had been drawn in the name of Clement T. Coote & Co., all [99]*99these cases would have been applicable. Each partner has a right to use the name of the firm; and if he does, it is an act within the scope of his authority, and the transaction is primé facie

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Cite This Page — Counsel Stack

Bluebook (online)
6 F. Cas. 493, 3 D.C. 95, 3 Cranch 95, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coote-ex-rel-jones-v-bank-of-the-united-states-circtddc-1827.