Faler v. Jordan

44 Miss. 283
CourtMississippi Supreme Court
DecidedOctober 15, 1870
StatusPublished
Cited by18 cases

This text of 44 Miss. 283 (Faler v. Jordan) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Faler v. Jordan, 44 Miss. 283 (Mich. 1870).

Opinion

SlSIRARU, J.:

Suit was brought by Jas. A. Jordan, against Harper, administrator de bonis non of Daniel McLaurin, deceased, W. I. Braughn, aud Martin Faler, survivor of the co-partnership of Faler, McLaurin & Co., to recover the amount due on a promissory note, dated April 20th, 1860, at one day after date, for $1,000, made by Daniel McLaurin, W. I. Draughn, and Faler, McLaurin & Co.

'The suit was dismissed as to Harper, administrator.

Faler pleaded non est factum. The firm was composed of Cornelius McLaurin and Faler,

The points for adjudication arise on the admissibility and competency of testimony, on the instructions to the jury and the refusal of the court to grant a new trial.

The circumstances attending the execution of the note, are these, as deposed to, by the plaintiff, Jordan: Cornelius [287]*287McLaurin applied for a loan of money, for. the use of the firm, and produced the note sued on, which was signed by Daniel McLaurin and W. I. Draughn, but blank as to amount; on receipt of the money, the firm name of Faler & McLaurin, was signed to the note. The authority to McLaurin to fill the blank was written under the note, and signed by Daniel McLaurin and W. Draughn. Does not know what Cornelius McLaurin did with the money, nor did Faler, so far as witness was aware, know anything of the transaction.

Faler, the defendant, stated, that at the date of the note, the firm was in existence, and doing business at Hazlehurst, their business was that of general merchants, buying and selling goods, merchandise and groceries ; knew nothing of the note; neyer borrowed money on partnership account himself, nor never, authorized any other person to do so ; his partner had no such authority. 4 That he drew drafts in firm name, on short time on their merchants in New Orleans; that the firm had a running account with their New Orleans merchant; balance sometimes for and against them.

At the date of the note>, the partnership of Cornelius Me-' Laurin and Faler was in existence, and the nóte is obligaixuy on Faler, if it was in the scope of the authority of one partner, to borrow money, and make a promise in the firm name, to repay it. In describing the authority of a partner, the jurists generally sa3^, that each is the agent of the others, or rather of the firm, for all purposes within the limits of itg business. Story on Part., -§ 216.

In Hankens v. Bourne, 8 W. & M., 703, Parker B., very clearly states it, thus : “ One partner by virtue of that relation, is constituted a general agent for another, as to all matters within scope of the partnership dealings, and has communicated to him by virtue of that relation, all authorities, necessary for carrying on the partnership, and all such as are usually exercised by partners in that business in which they are engaged.”

In Winship v. Bank of U. S., Marshall, C. J., said: “A partner has power to transact the whole business of the firm, and [288]*288consequently to bind Ms partners in such, transactions as entirely as himself. When a partnership is formed for a particular purpose, it is understood to be in itself a grant of power to the acting members, to transact its business in the usual way.”

Parsons, in his treatise on this subject, observes with an accurate conception of the legal idea: “ The' individual partner, when conducting the affairs of the partnership, is not acting for himself, because of his own interest, and then for the rest, by their authority, but as acting for and representing the ‘ commercial personalty.’ ” If a partnership engages in a transaction outside of its usual business, the acts and declarations of one partner, with respect to it, are of the same force as acts and declarations in the course of its ordinary business. Sandilands v. Marsh, 2 B. & Ald., 573. One member of a commercial firm, such as this of Paler & McLaurin, may buy and sell, may transfer and assign, either in pledge or by mortgage, the partnership effects, in the name of the firm. He may also bind the firm by borrowing money. Winship v. U. S. Bank, 5 Peters, 520; Whitaker v. Brown, 16 Wood, 505. Nor does it matter whether the individual partner waste or misapply the money. Onondaga Bank v. Dupuy, 17 Wend., 47.

The power of each partner to put the name of the firm to negotiable paper, is so essential to the conducting of its business, that it is implied from the very existence of the firm; and stipulations among the members, restricting the right to one or more, will not affect third parties without notice. Windship v. Bank of U. S., 5 Peters, 520; Bank of Ky. v. Brocking, 2 Litt., 41. Persons thus dealing with an individual partner, are not required to inquire whether he is restricted by the partnership articles. In the absence of knowledge to the contrary, they have the right to presume that he has the power. See Ray v. Johnson, 2 Peters, 186, 197; Comsey v. Baker, 7 Harris & J., 28. Whenever the partnership name appears on commercial paper, the firm is prima facie bound, and the onus is on the firm and each member to show that it or he is not liable.

[289]*289It follows, from the principles already stated, that all statements, representations, and admissions, made by an individual partner, in reference to a firm transaction, are of the same effect as if made by all the members of the partnership. Thus, in Sweet v. Bradley, 24 Barb., 549, a member of the partnership sold promissory notes belonging to the firm, for account of the firm. He assured the purchaser that the notes were made in the regular course of trade — that the makers and indorsers were responsible. The notes, bought on the faith of these representations turned out to be worthless, and the statements false. It was held that the firm was responsible for the representations, and that an action would lie against all the partners, on the warranty. It would follow, from these principles, that Jordan is entitled to recover against Faler, unless, as complained in this court, improper testimony was admitted to the jury.

The competency of Jordan to prove the statements of McLaurin and the circumstances of making the note were' objected to by Faler, on the ground that the witness was establishing a claim against the estate of Cornelius McLau-rin, deceased, to an amount exceeding fifty dollars. The point is by no means free of difficulty. The 10th art. of the Code, 357 makes the contracts, promises and liabilities of co-partners, joint and several. Art. 12. Joint or several suits may be brought against the survivors, and the representa: tives of the deceased partner.

In the attitude of the case when Jordan testified, the suit was against Faler alone as survivor. McLaurin’s administrator was not a party. The objection arises under the Code, 510, art. 190. No person shall be incompetent to testify, whether a party to thejsuit or otherwise, by reacoa of any interest in the result thereof, or in the record as an instrument of evidence; provided, that no person shall be a witness in a suit by or against himself, to establish his own claim against the estate of a deceased person to an amount exceeding fifty dollars. Subject to the proviso, it was the plain intention of the legislature to remove the common law [290]*290incapacities by reason of interest in the result of the suit, or the record as an instrument of evidence, or because of being a party. All these things are referred to on the score of credibility.

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Bluebook (online)
44 Miss. 283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/faler-v-jordan-miss-1870.