Finan v. Babcock

25 N.W. 294, 58 Mich. 301, 1885 Mich. LEXIS 518
CourtMichigan Supreme Court
DecidedOctober 28, 1885
StatusPublished
Cited by2 cases

This text of 25 N.W. 294 (Finan v. Babcock) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Finan v. Babcock, 25 N.W. 294, 58 Mich. 301, 1885 Mich. LEXIS 518 (Mich. 1885).

Opinion

Champlin, J.

The defendants composed the firm of S. Babcock & Co., and in December, 18S4, were engaged in carrying on the lumbering business. In one of their camps they employed James Pinan as foreman. He was authorized to keep the time of the men, and when they wanted their pay to settle up with them - by giving them a statement, addressed to Babcock & Co., of the number of days which they had worked, and the price agreed to be paid, and their account at the camp signed by Pinan as foreman. lie was authorized to draw orders on the firm of Sailing, Hanson & Co. in the name of the firm of S. Babcock & Co., by himself as foreman. If he wanted money himself he drew his draft, or [303]*303gave orders signed by himself, which if paid were charged to him individually. lie had the powers usually given to foremen of lumber camps. lie employed men and discharged them, kept their accounts in camp, credited them with their work, gave them their time, bought hay and potatoes, certified to correctness of bills, and the bills.were paid on his certificate. He gave his personal order or drafts, which defendants paid and charged to him. If on settlement with him such personal orders or drafts appeared to have been for the benefit of the firm, they were allowed and credited up to him on his personal account.

Thomas Hislop had been employed by defendants in their camp of which James Finan was foreman, and on the 6th of December, 1884, the defendants were indebted to him in a sum exceeding ten dollars. He, being indebted to Hugh Finan, procured from the foreman the following draft or order:

“Portage, December 6th, 1884.
S. Babcock <& Go. : Pay the order of Hugh Finan the sum of ten dollars, and charge the same to Camp 8.
James Finan.”

The foreman then charged Hislop with the amount upon the books, and Hislop delivered the order to Hugh Finan in payment of his debt to him. On the same day the foreman gave a similar order to Thomas Hislop, as pa}ree, for another ten dollars, which was paid by defendants on presentation. On the trial the camp-book ivas produced and identified by the foreman, in which two orders, amounting to twenty dollars appear charged to Thomas Hislop, under date of December 6th, 1884. The record shows that at the time of the trial no settlement had been had between Thomas Hislop and defendants, but that defendants still owed him ten dollars or more. The defendants never accepted the order in writing, and there was no evidence that it was ever presented for acceptance before suit brought. There vras evidence of a communication between plaintiff and defendants’ book-keeper respecting the order, which was immaterial, and admitted against the defendants’ objection on that ground, but in the [304]*304view we have taken of this case its admission worked no injury to defendants, and the case will not be sent back for a new trial for that error.1

The defendants’ counsel requested the court to instruct the jury as follows:

1. That the plaintiff was not entitled to recover from the defendants on the evidence.

2. That if James Finan understood that orders drawn by him on defendants in the form of the order sued on were, when paid, to be charged to him, then the order is not a liability against the defendants until accepted.

3. That plaintiff cannot recover on the facts of this case unless the order was accepted by the defendants in writing.

4. That the novation of the debt of Thomas Iiislop is simpljr a transfer of his claim against defendants to James Finan, but defendants would not thereby become liable to plaintiff, except through their written acceptance of the order in suit.

These requests were refused, and the court instructed the jury as follows:

“ I will say to you, and let it go upon the record, that if you find that this man was the duly authorized agent of Babcock & Co. to draw this kind of an order, and fix the amount of it, and give it to the man in payment for his claim, it would be binding upon the firm without a written acceptance, and the plaintiff should recover upon it, and would stand in the same situation as though Babcock himself had drawn it upon himself. There would be no question in the law if Michael Engclmann or S. Babcock had drawn this order and signed their names to it, either one of them; upon their firm it would be binding in law, and legal without any acceptance, because in itself, it fixed the liability of the firm; and I believe myself, at the present time, that if this man was the duly authorized agent for that purpose, and he drew it, that it would' stand upon the same basis in law as though it was drawn by S. Babcock or Michael Engelmann. Now, then, [305]*305that being the law of the case, the next question is to apply the facts to that proposition of law, and decide this case properly and correctly. There has been proof introduced here on the part of the plaintiff tending to show that James Finan was the duly authorized agent for this purpose. If you find he was the duly authorized agent, you may allow the plaintiff to recover for the amount of this paper, and the interest upon it from the time the demand was made. On the other side, there has been proof offered' on the part of Mr. Babcock, one of these defendants, that he never authorized this man to draw this kind of a paper at all; that he never did; and he had no instructions and no authority whatever in that direction, and that he trespassed, and went beyond the scope of his agency, in this behalf, and therefore they are not liable. If that is true, then of course, they are not liable. ‘ If this man James Finan had no power to draw this, no authority to draw it, then it would stand upon the same basis as though I had drawn it, or you had drawn it, and would have no binding force whatever. Now, in settling that question, you are to be guided and controlled by the evidence in the case. You will take all the circumstances in the case together — -the conduct of this man Finan in making out papers, if any were made of this character, or a similar character, and the knowledge and acquiescence of Babcock & Co. Take into consideration the positive testimony of Mr. Babcock that he had no such power, or instruction or agency; take into consideration the testimony of Mr. Finan as to what he claimed the agency was,' — and then settle this case in such a way as satisfies your judgment as to what is right. I think, as a matter of law that on no other theory can the plaintiff recover in this suit. I think there was no such novation as would authorize the plaintiff to recover. I have thought that matter over somewhat, and I think the only chance for the party to recover in this suit is upon this order. That was the theory that the action was commenced upon; that was the theory the action was tried upon in justice court, and the theory upon which he can recover, — upon the mere theory that Mr. Finan was the duly authorized agent to draw this order, — and that will raise the question fairly; and if, as a matter of fact, the court should afterwards hold that this order is not valid until accepted, then it disposes of the case.”

The learned circuit judge was in error in instructing the jury that the plaintiff’s right to recover depended upon the order alone and upon the authority of Mr. Finan to draw it. [306]

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Bluebook (online)
25 N.W. 294, 58 Mich. 301, 1885 Mich. LEXIS 518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/finan-v-babcock-mich-1885.