Davis v. Belford

37 N.W. 919, 70 Mich. 120, 1888 Mich. LEXIS 784
Michigan Supreme Court·Decided April 27, 1888·Published·Cited by 17 cases

Opinion

Long, J.

This is an action of assumpsit, brought in the circuit court for the county of Oakland, against the defendants, 42 in number, charging them jointly upon a contract, the essential parts of which are as follows:

“ Contract and Srecieications eor the Chicago Cream“erv Association.

“ Davis & Rankin, Proprietors.

“ Chicago, III., November 20, 1885.

‘‘We, Davis & Rankin, party of the first part, agree with the parties of the second part to erect and put in operation a ■creamery at or near Holly, Oakland county, Michigan, including an ice-house, engine and coal room.

“The building to be 28x50 feet, 12 feet high, with three air-chambers around the entire building, built of good sub.stantial building material, and painted with two coats of paint on the outside. All work to be done in a substantial [121]*121-and workman-like manner. * * * The plans and specifications of said creamery are hereunto attached, and made a part hereof.

“ Said Davis & Rankin agree to erect said creamery, according to the within plans and specifications, for the sum of $4,500, payable as follows: $2,250 cash; $2,250 May 16, 1886.

“ The subscribers hereto agree to pay the above amount for -said creamery when completed; the subscribers agreeing to .accept the same as soon as completed to within plans and specifications. Said creamery to be completed within 60 days after the above amount is subscribed; all payments under this contract to be made to Davis '& Rankin, or their authorized agent.

“ As soon as the above amount of $4,500 is subscribed, or in reasonable time thereafter, said subscribers shall incorporate under the laws of the State, as therein provided, fixing the aggregate amount of stock at $4,500, to be divided into -45 shares of $100 each; also it shall be further provided in the articles of said corporation, and in the by-laws thereof, that no assessment shall be made on the stockholders of said company for the indebtedness of the same; neither shall the private property of said stockholders be liable for such indebtedness (except that which is hereby created, and to be paid to the party of the first part.)

“That after said organization is completed, said company ■ shall issue stock to the above-mentioned subscribers, to the -amount of their subscription hereunto annexed.

“For a faithful and full performance of our respective parts of the above contract, we bind ourselves, our heirs, ■executors, administrators, and assigns.

“ Executed and dated December 16, 1885.

“ Davis & Rankin, Chicago.”

This contract was subscribed by the names of all the ■defendants, and opposite their names appeared the amount of each individual subscription, varying in amount from $25 to $800 each.

“Da-vis & Rankin agree to allow parties of the second -part $100 for the land to build said creamery on.”

On the back of this contract is written the following:

“Holly, Mich., February 16, 1886.

“ We, the undersigned, building committee and directors [122]*122of Holly Creamery Co., do and agree this day to accept of building, etc. (with the exceptions attached hereon), believing it to be fully according to contract.

“ A. M. Beleord,

“Lott Smith,

“ C. J. Allen,

“ Sumner C. Austin,

“ M. S. Downing,

“ Directors’ Committee.

“ With the exceptions of water supply, pointing, foundation, and painting. Parties of the first part agree to furnish a good supply of water, and to have painting done as per contract. This contract to be delivered up when these exceptions are accepted by the board of directors.

“Davis & Rankin.

“ Holly, February 25, 1886.

“We, the undersigned, agree to accept of the above as-completed according to contract* Lott Smith.

“A. M. Beleord.

“Sumner 0. Austin.

“J. A. Divine.”

The declaration is upon the common counts in assumpsit,. to which the defendants pleaded the general issue.

The sole contention in this case is as to whether this is a. joint or several contract.

The cause was tried before a jury, who, under the direction of the court, returned a verdict in favor of defendants, and the plaintiffs bring error.

The plaintiffs, to maintain their suit, proved their partnership, introduced in evidence the above contract, and written acceptance of the creamery building, and then proved a balance of $500, and interest, due and unpaid, and rested their case.

Defendants’ counsel claimed that the contract upon which-plaintiffs’ action was founded is ambiguous, and the circuit judge, subject to plaintiffs’ objection and exception, admitted in evidence certain contemporaneous oral statements as to the liability of the persons signing the contract, and certain letters, drafts, and receipts, as explanatory of the contract.

[123]*123At the close of the trial, however, the court took the whole-case from the jury.

It appeared upon the trial that the plaintiffs were doing business in the city of Chicago, and that S. J. Davis was their duly-authorized agent to organize creamery companies in different parts of the United States, making contracts for the erection of buildings for such purposes, and during the summer of 1885 came to Holly, Oakland county, for that purpose,, and while there took into his employ Albert M. Belford, one of the defendants in this case, to assist him in organizing said company. The contract above set forth was drawn, and Mr. Belford accompanied Mr. Davis to the different parties to obtain their signatures thereto, and, in the talk with some of the subscribers, represented that they would only be holden for the amount subscribed opposite their names on the contract. Mr. Belford, assisted by S. J. Davis, obtained the signatures to the contract, with the understanding that each party only became liable for the amount of his individual subscription.

Mr. Belford subscribed for $800 of the stock, and his father for $200.

All the subscriptions have been paid except that of Belford and his father, and Belford had paid $500 on his and his father’s subscription in labor, and for which he held the receipt of the plaintiffs.

After the signatures to the contract had been obtained, Mr. Belford held it, claiming that S. J. Davis had made some-arrangement with him for commissions.

On October 29, 1885, plaintiffs wrote Mr. Belford:

“In reply to yours of October 27, will say that we would advise you to engage Mr. Embich, at two or three dollars per day, or even five dollars per day, for four or five days, to assist you in closing that contract, and anything that Mr. Embich will do in a business way that is legitimate will be satisfactory to us; and we would be pleased to build, and allow you the same commission that S. J. Davis promised. [124]*124you, as S. J. Davis is our agent, and whatever he agrees to do we will back up.”

On January 11, 1886, plaintiffs again wrote Belford, declining to pay the $500 claimed by him as commissions, but offering to pay $400 for the $4,500 contract. In this letter the plaintiffs say:

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Davis v. Belford, 37 N.W. 919, 70 Mich. 120, 1888 Mich. LEXIS 784 (Mich. 1888).

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