Farmers' & Manufacturers' Bank v. Whinfield

24 Wend. 419
CourtNew York Supreme Court
DecidedOctober 15, 1840
StatusPublished
Cited by16 cases

This text of 24 Wend. 419 (Farmers' & Manufacturers' Bank v. Whinfield) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' & Manufacturers' Bank v. Whinfield, 24 Wend. 419 (N.Y. Super. Ct. 1840).

Opinion

By the Court,

Cowen, J.

Several exceptions were taken on the trial of this cause, to the decisions of the judge, in admitting and denying evidence.

I. He excluded parol evidence, offered by the defendant to show the [ *423 ] plaintiff’s’ agreement with the makers that they *should have time for payment. It is true that the giving of the bond, warrant and specification, was sufficient consideration for the agreement, and there is nothing in its own nature to prevent its being by parol. After a promissory note is made and endorsed, the holder and maker may, without writing, stipulate on a proper consideration, to enlarge the time of payment, and such stipulation will have the effect to discharge the endorser. The answer here is, however, that they have not chosen to speak orally, but by writing; by a bond and warrant sealed on one side, and a writing fixing the terms of the agreement on the other ; this being signed by both parties. It declares that the bond and warrant were to secure the payment of the note in question in this case, and two other notes if a balance should remain for that purpose after exhausting two previous classes of debts, the bond being payable presently. Whether the specialty on one side and the unsealed specification on the other constituted only one, or two agreements, they were com[423]*423píete in themselves; they were mutual, the makers binding themselves to pay, and the obligees to apply the proceeds in a certain order. The whole was in writing, the one standing as the consideration of the other : and the evidence offered of an oral agreement to enlarge the time was but another phrase for enlarging or adding to the written agreement as it stood on the side of the obligees. This was clearly inadmissible. The rule that parol evidence cannot be received in such a case for such an object, with its qualifications, may be collected from the cases cited in Cowen & Hill’s Notes to 1 Phil. 1470, and a few following pages.

2. It was assumed by the judge that an execution of the bond and specification by the makers, in consequence of a misreading, would avoid the specification. That would leave the judgment to stand good, and make the avails of the sale under the execution applicable to the several demands mentioned in the specification, independently of its provisions. It could not avoid the judgment; but that being ex parte and incomplete, its object would be left open to explanation, according to the truth, by such evidence as the defendant had within his reach. I see no objection in *such a case to his connecting the judgment with its subject mat- [ *424 ] ter by parol evidence. Looking at the bond and record, it is ambiguous whether they were for a new debt, or intended of those mentioned in the specification; and then whether as a satisfaction or collateral security, rateably or in a certain order. Such an ambiguity may, in its own nature, be removed by written or parol evidence. The evidence offered and received was, in effect, first to avoid the written appropriation, and then to substitute the oral arrangement. The first being out of the way, there was room for the latter. An agreement between the debtor and creditor, fixing the mode of appropriation, controls the right of the creditor. We think, therefore, the judge was right when he let in evidence of the fraud and the oral agreement. The latter was material, as auxiliary to the evidence of fraud, and should the jury find this, then as giving a direction to the credit of the money to be levied. The fraud would not, as contended by the defendant’s counsel, have opened the whole transaction, judgment and all, thus leaving the avails afloat, perhaps recoverable back by the makers, on the ground of the wrong. That might indeed have been so, had the judgment been directly assailed by a successful motion to set it aside. Till such a motion was made, however, the judgment was itself valid against the makers, however fraudulent. Its purpose was alone sought to be rectified; and that only could be rectified in this collateral way. The makers had no objection to the judgment. Its object alone was contested. In this view, the actual oral agreement became material; and it follows, that every circumstance going to confirm or repel the proof brought forward to establish it was admissible.

[424]*4248. One of these circumstances was the interview between Yassar and Williams. Williams testified that, at a proper time, after he had discovered the fraud, he remonstrated with Yassar, the plaintiff’s agent. This conduct was very natural for a man who had been imposed upon, and being true, would tend to give him credit with the jury. Yassar, a witness for the plaintiffs sworn in reply, had heard him speak of this on the stand, [ *425 ] and was very properly, '^therefore, inquired of as to its truth. The form of the question, as being a leading one, was not made a ground of objection. His happening to hear the testimony, certainly did not disqualify him. That could not have been made even a plausible point, without his having been ordered out of court while Williams was testifying. He and Yassar stood in direct contradiction on the two leading facts, the agreement for rateable distribution, and fraud in misreading a stipulation intended, as Williams said, to provide for it. Every fact, therefore, detracting from Williams’ credit, was admissible, and there was nothing arising from the relative positions in which the two witnesses stood, which rendered Yassar incompetent more than another to deny the alleged interview- Indeed, where witnesses conflict as to a conversation between themselves, there is in some cases considerable advantage in both being present face to face, hearing and explaining to one another upon the stand.

4. In the course of the negotiation which resulted in the bond and judgment, Thomas Williams had, by the request of Yassar, furnished a statement of his affairs. And he was questioned in the course of his cross-examination with an evident view to impeach its fairness and veracity ; whether successfully or not, was, I think, entirely immaterial, for I have been unable to see that it had the remotest relevancy to the matter in hand. It was, so far an effort to turn the tables upon the witness, by showing an attempt on his side, through a fraud on the bank, to call out farther advances. All the bearing it could have had upon his credibility was no more than an insulated falsehood, not under oath, uttered years before, in regard to any other matter. It would neither weaken nor confirm the evidence as to fraud in the misreading by thé bank agents, or the oral agreement, which by the misreading was sought to be evaded. When, therefore, at an ulterior stage of the cause, one party offered to show the truth and the other the falsity of the statement, the judge was under no obligation to hear the evidence offered on either side. It does not follow that, because irrelevant testimony has been given on one side, though without objection, the other has a right [ *426 ] to give *evidenee in reply. Nor is a court bound to hear irrelevant evidence by consent of parties. See the cases collected in Cowen Hill’s Notes to Phil. Ev. p. 430, et seq. Also, Prevost v. Simeon, 4 Mill. Lou. R. 472, 475; Wilkinson v. Jett, 7 Leigh, 115, 117; Jewett v. Stevens, 6 N. Hamp. R. 80; and Hamblett v. Hamblett, id. 333, [426]*426342.

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Bluebook (online)
24 Wend. 419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-manufacturers-bank-v-whinfield-nysupct-1840.