Everingham v. Meighan

13 N.W. 269, 55 Wis. 354, 1882 Wisc. LEXIS 146
CourtWisconsin Supreme Court
DecidedSeptember 19, 1882
StatusPublished
Cited by24 cases

This text of 13 N.W. 269 (Everingham v. Meighan) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Everingham v. Meighan, 13 N.W. 269, 55 Wis. 354, 1882 Wisc. LEXIS 146 (Wis. 1882).

Opinion

Oetoít, J.

The defendant, engaged in the grain and produce trade at Cresco, in the state of Iowa, in 1876, shipped and consigned to the plaintiff, a commission merchant in the city of Milwaukee, grain and produce to be disposed of by him for the defendant, and drafts were drawn upon the plaintiff and paid by him froln time to time on account of such shipments, and such business continued between the parties until July 1,1878, at which time there was a balance of $151.80, on account of such shipments and sales, in favor of the plaintiff. A short time after the commencement of this business the defendant employed the plaintiff to buy and sell grain for him, in form, for future delivery at the chamber of commerce in the city of Milwaukee, and to account to him for the profits thereof. This business was called by various names in the correspondence of the parties, such as “ scalping,” “ deals,” “ options,” “ speculating deals,” etc., while the former was called the" “regular” business, and they were kept separate on the books and accounts. On the first day of July, 1878, the defendant was indebted to [359]*359the plaintiff on this “scalping” account in the sum of $2,109.64, for losses in the business. A short time beforei there had been a disagreement between the parties as to which should bear these losses, the defendant insisting that the plaintiff should bear the whole or part of them, and the plaintiff insisting that the defendant should bear the whole; and it was finally arranged — whether by compromise, settlement, accounting, or concession need not now be determined— that the scalping account should stand at $848.20, by deducting from the whole account $1,261.44, which ■sum, with the addition of $151.80, the balance of the regular account, made $1,000 to be thereafter paid. The parties continued their regular business of the shipment and sale of produce until 1879, with an occasional scalping transaction, and there was then a balance of $799.92, without interest, ■on both accounts, against the defendant, for which this suit is brought.

The plaintiff charges an accounting and a compromise of ■differences on July 1, 1878, by which this $1,000 was agreed to be paid. The defendant, in his answer, charges that said scalping business was a gambling transaction between him and the plaintiff, by which the plaintiff was to buy and sell .grain for him without receiving or delivering any such ■grain, and without any intention of either party that any grain should be received or delivered, but with the intention •only to pay or receive the differences between the prices named in the contract and the market rate, whichever way the same might be, and that pursuant to such contracts no grain was actually received or delivered, but such differences were, so settled and adjusted, whereby the plaintiff .claimed that he had lost the said sum of $2,109.64 up to July 1, 1878, and that the plaintiff deducted therefrom $1,261.44, .-and that the balance of $848.20 was to continue to be kept as an account separate from the account of the regular grain shipments. And the defendant further charged that all [360]*360such pretended losses upon such gambling transactions were incurred by the plaintiff by his failure and refusal to comply with his instructions in regard to the time and manner of purchasing and selling the grain under such gambling contracts. The testimony of the defendant clearly and positively supports his answer, and especially the allegations thereof relating to the transactions of the parties in the purchase and sale of grain in the city of Milwaukee, and at the chamber of commerce, and makes the contracts of the plaintiff, for such purchase and sale of grain, gambling contracts, and the employment of the plaintiff by the defendant, for that purpose, a gambling transaction, within the definition and authority of the case of Barnard v. Backhaus, 52 Wis., 593, and the testimony of the plaintiff rather corroborates than denies the testimony of the defendant in this respect.

The transaction out of which these pretended losses arose and in which they were incurred, according to the testimony of the defendant, was not only illegal and void, but orimi-nal. The learned circuit judge gave to the jury a very long opinion concerning this transaction, and boldly, if not wisely, criticised the opinion of this court in Barnard v. Backhaus; but I do not understand him to have instructed the jury, that there was not evidence establishing the illegality of this claim for losses as having been incurred by gambling transactions. The instruction appears to be that notwithstanding the original claim of $2,109.64 for these losses was void for that reason, yet, there having been differences concerning the same, it was compromised at a less sum, which became thereby a valid and lawful claim against the defendant. The learned judge says in his opinion to the jury: “ As I understand the proofs, and I don’t think there is any dispute on the subject, Everingham rendered his account to the defendant and the defendant objected to the validity of it, claiming they ought to bear the whole of these losses, and that they afterwards came to the conclusion that the question of [361]*361the validity of the claim should be settled between them by a compromise, the plaintiff bearing a portion of the loss and the defendant the balance, about $1,000. Mow that, I understand, the law makes a good compromise. It is the relinquishment of mutual claims,— the one that the claim is. valid, and the other that it is invalid — and their abandonment by the respective parties; and the settlement arrived at, I understand, constitutes a compromise. Compromises are fostered in the law.” Certain parts of these sentences-were excepted to by the defendant’s counsel.

Is it quite correct to say that there was any difference between the parties, as to the validity of thi s claim for losses t There was no evidence whatever that the validity of the claim was questioned or considered. It was a gambling-claim, and both parties were presumed to know that it was invalid. The only evidence as to any difference between them as to this claim was that the defendant insisted the plaintiff ought to bear the whole, or, at least, part of these losses, because they were incurred by his fault, and the-plaintiff agreed .finally to bear a large part of them, viz., $1,261.44, and the defendant agreed to bear the balance, or $848.20. There was no question made of the real amount of the losses incurred, and no question as to their validity. It was a question who should bear them — this and nothing-more. This matter is important as bearing upon the right to order a verdict in the case, and here may be found the reason why it was done; and also important because the learned counsel of the respondent makes the same point in his brief. Suppose A. employs B. to bet for him at faro, or any other game of chance, and B. loses a large sum of money in the game, which he has paid, and demands payment of the losses of A., and there is difference of opinion between them as to the validity of the claim, and A. finally agrees to pay one-half of it and B. agrees to bear the other half of the loss himself, does this compromise make the claim legal? [362]*362By all authorities and in common i"eason it does not, for both parties are ‘ equally guilty by entering into such a gaming contract, being presumed to know that the transaction is illegal, and neither can enforce the contract or the terms of any agreement or compromise arising therefrom. In such a case if B. had won at the game a large sum of money, most certainly A.

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Bluebook (online)
13 N.W. 269, 55 Wis. 354, 1882 Wisc. LEXIS 146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/everingham-v-meighan-wis-1882.