Edwards v. Dillon

35 N.E. 135, 147 Ill. 14
CourtIllinois Supreme Court
DecidedOctober 27, 1893
StatusPublished
Cited by6 cases

This text of 35 N.E. 135 (Edwards v. Dillon) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edwards v. Dillon, 35 N.E. 135, 147 Ill. 14 (Ill. 1893).

Opinion

Mr. Justice Magruder

delivered the opinion of the Court:

This is an action of assumpsit brought by the appellant against the appellee upon the following sealed instrument:

“This is to Certify that Levi Dillon & Sons have this day sold to B. Edwards, of Chicago, Ill., the imported Norman stallion, Cambrone, for the sum of eighteen hundred dollars. We-warrant the said stallion sound and healthy, but assume no' responsibility on account of disease or accident after this date. We guarantee that the said stallion, with proper handling, shall prove to be an average foal-getter. In case the said stallion shall fail to get colts, we agree to exchange him for a stallion of equal merits, and to pay half of the expense incurred in making said exchange. Said stallion shall have a fair trial of two years before being condemned as a breeder. Cambrone was foaled in France in 1880, and imported to the United States by Dillon Brothers in 1888. Cambrone is recorded in the National Register of Norman Horses, No. 2081.

“In witness whereof, we have hereunto set our hands and seal this thirtieth day of January, 1884.

Levi Dillon & Sons. [Seal.]”

All of the foregoing instrument was a part of the printed form hereinafter referred to, except the signature to said instrument, and those words thereof which are italicized. The declaration avers breaches of the warranty and guarantee set forth in the certificate.

The defendant, Levi Dillon, pleaded in abatement the nonjoinder of his four partners, setting up that the alleged promises, if any, were made by the firm of “Levi Dillon & Sons,” composed of Levi Dillon, John Harding, James Bailsback, Ellis Dillon and James C. Duncan, and that the horse in question, at the time of the sale, was the property of the firm and not of Levi Dillon alone. The plaintiff did not amend his declaration by making new parties, but filed his replication joining an issue of fact on the plea. In the circuit court there was a trial by jury, and verdict and judgment were in favor of the defendant, which judgment has been affirmed by the Appellate Court.

It is admitted, that the signature to the contract, “Levi Dillon & Sons,” was made by Levi Dillon alone. The issue tried below was, whether or not the contract was the contract of Levi Dillon & Sons, or of Levi Dillon alone. The jury found it to be the contract of the firm, and the judgment of the Appellate Court is conclusive of the question of fact.

But it is urged by appellant, that the court erred in allowing the defendant to introduce, over plaintiff’s objection, oral proof of the partnership, upon the alleged ground that the contract sued on was under seal, and that Levi Dillon had no power to sign a sealed instrument for the firm, and that, therefore, under the law the signature was that of Levi Dillon alone, and that he alone was liable. The same question presented by the objections to evidence arises upon the instructions. It is assigned as error, that the court refused to instruct the jury, at plaintiff’s request, that, “in order to bind the partners by signing and sealing the contract in question in the firm name of Levi Dillon & Sons, the defendant must have had express authority from each one of his partners to execute the contract under seal.”

At common law one partner could not hind the others by an instrument under seal, unless they gave him express authority under their seals. In harmony with this rule it has been held, that, where one partner executes an instrument under seal in the firm name without authority under seal, he alone is bound by it. ■ (Story on Partnership—7 ed.—secs. 117 and 119; 1 Bates’ Law of Partnership, sec. 421). The general weight of authority is undoubtedly in favor of the position, that one partner has no implied power to bind the firm by an instrument under seal. (17 Am. & Eng. Enc. of Law, page 1001 and cases in notes). But the American courts have been inclined to depart from the harshness of the common law rule. They hold to the doctrine that, where one partner executes an instrument under seal in the name of the firm, it will be regarded as binding upon the firm, “where an express or implied authority or confirmation could be justly established not under seal, whether it be verbal, or in writing, or circumstantial.” (Story on Part.—7 ed.—secs. 121, 122). The prior assent or subsequent ratification may not only be by parol, but may be implied from declarations, or from acts and circumstances. (1 Bates on Law of Part. sec. 416; Parsons on Part. marg. page 181 and notes; Gram v. Seton, 1 Hall, 262; Cady v. Shepherd, 11 Pick. 400; 17 Am. & Eng. Enc. of Law, page .1002 and cases in note 4).

In Eames v. Preston,,20 Ill. 389, the question was whether the action of assumpsit could be maintained upon a certain note therein set forth which was executed by a firm. Inasmuch as the note was held to be under the seal either of the ■firm or of the partner signing it, it followed, that suit in assumpsit would not lie upon it under the statute as it then ■existed. The material inquiry in that case was, not so much ■whether one partner had authority to execute an instrument under seal in the name of the firm, as whether the instrument there under consideration was or was not a sealed instrument. Under section 1.9 of the present Practice Act assumpsit may be maintained upon sealed instruments. That section has. abolished the distinction between sealed and unsealed instruments as to the form of action. (Harms v. McCormick, 132 Ill. 104). In Peine v. Weber, 47 Ill. 41, we said: “We think it may be safely said the modern rule is, that one partner may, in furtherance of the partnership business and for its benefit, execute a deed under seal, which will be binding on the other, if he has foreknowledge, or subsequently ratifies it, and this may be proved by acts and circumstances, or by his verbal declarations and admissions.” Under the American doctrine, the liability of the partners will not be confined to the one who signs the sealed instrument in the name of the firm, if it appear that the prior assent, or subsequent ratification, of the other partners can be implied from their acts and declarations, or from other proper evidence tending to show such assent or ratification. (Wilcox v. Dodge, 12 Bradw. 517; Walsh v. Lennon, 98 Ill. 27).

There is evidence in the present record tending to show, that the act of Levi Dillon in signing the firm name of “Levi Dillon & Sons” to the instrument sued upon in this case was done with the previous assent of the other partners. The firm was engaged in the business of importing and selling Norman horses. They prepared a bound book, containing blank forms of certificates of sale with warranties, of which the foregoing certificate, except the signature and italicized words, is a sample. These certificates with their warranties were intended to be those of the firm because the name of the firm is printed in the body of them, and were intended to be under seal because each has, to the right of the signature line, a scroll with the word “seal” printed in it.

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Bluebook (online)
35 N.E. 135, 147 Ill. 14, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edwards-v-dillon-ill-1893.