Farmers & Mechanics Bank v. Green

30 N.J.L. 316
CourtSupreme Court of New Jersey
DecidedJune 15, 1863
StatusPublished

This text of 30 N.J.L. 316 (Farmers & Mechanics Bank v. Green) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers & Mechanics Bank v. Green, 30 N.J.L. 316 (N.J. 1863).

Opinion

Vredenburgh, J.

This was an action brought by the bank against the defendant, as one of the drawers of a promissory note, of which the following is a copy:

$409.21. Greensburgh, N. J., June 27, 1860.

Five months after date, we promise to pay to the order of Green, Brother & Cooper, four hundred and nine dollars, without defalcation. Value received.

Payable at Philadelphia, at 118 Walnut st.
Enoch W. Green & Co.
Endorsed Green, Brother & Cooper.

It was proved, at the trial, that this note was discounted by the plaintiff in the regular course of its business.

The defence set up was, that at the date of the note there was not, and had not been for several years, such a firm as that of Enoch W. Green & Co.; that the note was made by Philip Green, who drew it, and signed thereto the name of Enoch W. Green & Co. without the knowledge or consent of .the defendant, procured the note to be discounted, and appropriated the proceeds to his own use. It appeared in evidence that Philip Green and Enoch W. Green were brothers, .and that Philip died the 29th of October, 1860.

I think the jury were warranted by the evidence in finding the following facts:

1st. That at the giving of the note there was no such firm in existence as Enoch W. Green & Co.

2d. That the note in question never was drawn or signed by Enoch W. Green, or with his knowledge or procurement.

3d. That the note was made and signed by Philip Green, for his own use, and so appropriated without the knowledge or consent of the defendant.

4th. That if any such firm as Enoch W. Green & Co. ever existed, it was dissolved so early as 1849.

5th. That no business had ever been done between the plaintiffs and the firm of Enoch W. Green & Co, prior to the dissolution as aforesaid.

No notice of the dissolution was given. But the jury may [318]*318have gone upon a another ground, viz. that although the plaintiffs may never have had any notice of dissolution of the old firm of E. W. Green & Co., yet that if, after the actual dissolution of the old firm, the plaintiff, as a new customer, saw fit to come in and deal with one of the partners, as if the old firm was still in existence, without inquiry, that he did so at. his own peril.

It is a principle of law, that if a retiring partner gives no notice, then a customer of the firm accustomed to trade with the firm on the responsibility of all the partners, not knowing of the retirement, may hold such retiring partner for a debt contracted with the firm after the retirement. But a new customer generally cannot. 1 Par. on Contracts 145. This raises-two questions.

1st. Had the jury a legal right to conclude, from the evidence, that the plaintiff had ever dealt with the old firm of E. W. Green & Co. prior to the dissolution ?

2d. If the plaintiff had not so dealt, is there anything in this case to take it outside of the general rule ?

This first leads to an examination of the evidence upon the following questions:

1st. What is the evidence upon the question, whether there was any such partnership at all as that of E. W. Green & Co. ?

2d. If there was, when did it commence and when did it end ?

3d. When did the plaintiff commence to deal as if with the firm of E. W. Green & Co. ?

4th. What circumstances are there, if any, which would take this case out of the general rule of law, which prohibits a new customer from holding a firm responsible for an act of one of the partners, after dissolution without notice ?

First, as to the proof that there ever was such a partnership at all as that of E. W. Green & Co.

The only act ever proved to have been done by E. W. Green from which a partnership could be inferred, as against him, is that, in 1843, he wrote the name Enoch W. Green & Co. in the signature book of the Trenton Banking Company.

[319]*319The proof is that Enoch W. Green never bought or sold an article for or in the store, was never there in any other capacity than as an ordinary customer, never drew or paid a note, was never consulted about anything. lie was in every other respect, except as to this signature in the bank, an utter stranger to the whole business.

There is one other fact, not an act, so far as the proof goes, of E. W. Green, that a sign lettered Enoch W. Green & Co. was put upon a bridge belonging to Philip Green for some time. But the evidence is, that he protested against its being so up. He always protested he was no' partner. Philip always averred he was no partner. Philip did all the business, and took all the proceeds. There is not the slightest proof that Enoch ever received or claimed a cent from the firm in any shape whatever. There is no evidence that the plaintiff ever knew of this signature in the bank. This alleged store was a small shanty in the country, on the canal near Trenton, having in it from $100 to $250 worth of the two great staples in trade, rum and tobacco, while the store of Green, Brother & Cooper was a large concern, at 118 Walnut street, Philadelphia, and the plaintiff one of the largest banks in the city of Philadelphia.

Can we say that the jury could not legally conclude, from these facts, that there never had been any such partnership at all as that of E. W. Green & Co. ? Might not the jury legally conclude, that inasmuch as the defendant received no part of the profits, and meddled in no way with the concern, that the signature in the bank was only to give his brother Philip credit in that particular bank, which would make the defendant liable in that bank as a partner ; but which other banks, acting without any knowledge of such signature, would have no right to use as proof of partnership as between him and them? And as regards the sign, there is no evidence that it was put up by Enoch, or even assented to by him; it was not put on his building, or on a store containing any goods he claimed to be interested in, but put upon Philip’s building, and in the goods in which he, Philip, [320]*320claimed to be sole owner. The evidence is, that Enoch protested against it, until he finally prevailed with his brother Philip to take it down. Now had not the jury the right to infer that the sign was put up and kept up without Enoch’s consent, and therefore legally conclude that there never was any partnership at all ? Now it might be that the signature of E. W. Green & Co. and the sign, might make Enoch liable to third persons, if they discounted this note on the faith of these acts, even if Enoch and Philip were not partners in this alleged firm of E. W. Green & Co.; but then it should appear that they discounted this note by reason of their knowledge of this signature in the bank and the sign, and were deceived thereby. But here there is no such evidence. So that, so far as regards the plaintiff here, the jury had a right to infer from the evidence — first, that there was in fact no partnership and second, that Enoch W. Green had done, or permitted nothing to be done, which induced the plaintiff to give credit to this paper in the name of E. W. Green &

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Bluebook (online)
30 N.J.L. 316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-mechanics-bank-v-green-nj-1863.