Funch v. Abenheim

27 N.Y. Sup. Ct. 1
CourtNew York Supreme Court
DecidedJanuary 15, 1880
StatusPublished

This text of 27 N.Y. Sup. Ct. 1 (Funch v. Abenheim) 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
Funch v. Abenheim, 27 N.Y. Sup. Ct. 1 (N.Y. Super. Ct. 1880).

Opinion

Davis, P. J.:

This action was brought on a charter party bearing date on the 4th of June, 1874 made between the plaintiffs, as agents for the owners of the steamship “ Boyal Standard,” and the defendant. That the action was properly brought in the name of the plaintiffs as trustees of an express trust under the provisions of the Code (§§ 111, 113) is settled by Considerant v. Brisbane (22 N. Y., 389).

The charter party was brought to the defendant on the fourth day of June, which is the day it bears date, by Mr. Edye one of the plaintiffs; and the defendant offered in substance to show that Mr. Edye was told.at that time that the charter was desired for a shipment in June, and that the time when the vessel would sail from London was material; that Mr. Edye then said he would telegraph to London to find out when she sailed; that the next day he came to defendant and stated that he had so telegraphed to London, and exhibited a telegram which he said was an answer to such inquiry; that the telegram was understood by both of [5]*5them as stating that the vessel sailed on June fifth, and that Mr. Edye verbally stated also, “this vessel sails to-day, the fifth;” that thereupon the charter was executed by the defendant; that on the twenty-fifth of June, in answer to an inquiry from the defendant, the plaintiffs wrote him that the vessel had sailed on the fifth ; that Mr. Edye was mistaken at the time he made his statement as to the fact of his sending a telegram to learn the date of the sailing of the steamship and receiving an answer, and that in fact he had not so telegraphed ; that he was mistaken in stating that the dispatch which he exhibited was an answer to such telegraph ; that it was not in fact such an answer ; that he was mistaken in saying that the vessel sailed on the fifth of June ; that in fact she did not sail until the twenty-third of June ; and that both parties acted in making the contract under a mutual mistake as to the fact that a telegram had been sent over to ascertain when she sailed, and a reply received to the effect that she had sailed on that day, the fifth of June.

It was not offered to show that the statements of Mr. Edye were fraudulent representations, but that he was mistaken in respect to the facts asserted by him, and that the defendant acting thereupon was also mistaken as to such facts. It was also offered to show that on the twenty-sixth of June the defendant first learned by notice from the plaintiffs that the vessel did not sail until the twenty-third of June, and that he thereupon immediately notified the plaintiffs that he did not consider himself bound by the charter party and would not load the ship.

The whole of this evidence was excluded by the court upon plaintiffs objection, and the defendant duly excepted.

The offer was made expressly for the purpose of showing that the contract was entered into under a mutual mistake of material facts. It seems very plain that neither morality in business, nor the morality of business, would justify the enforcement of a contract made under such circumstances ; and the question is whether there is any inexorable rule of law that precludes the defendant from showing the facts.

The contract speaks as of its date in all that it says in respect to where the vessel then was. That is to be found in the first clause of the charter party, which is in these words :

[6]*6“ This charter party, made and concluded upon in the city of Now York, the fourth day of June, in the year of our Lord onci thousand eight hundred and seventy-four, between Funch, Edyc & Co., agents for owners of the S. S. Eoyal Standard, of North Shields, classed A 1, and of the burthen of 850 tons, or thereabouts net Register measurement now lying discharging in the harbor of London, of the first part, and Max Abenheim, Esq., merchant of New York, of the second.part.”

The only other allusion to her locality is found in the clause near the close of the contract, in these words : “ It is understood that the vessel shall proceed from London in ballast direct to New York.”

There is nothing, therefore, in the proposed offer which necessarily contradicts any portion of the contract, because if the statement, “ now lying discharging in the harbor of London,” contained in the descriptive clause, is intended to be a part of the contract, itself, as it of course speaks as of the date of the contract (the-fourth day of Juno) it is not at all inconsistent with the assertion made by the plaintiffs that she had sailed on the fifth of June, before the contract was signed.- Nor is there anything in the provision that the vessel shall proceed from London in ballast direct to Now York at all in conflict with’such assertion.

But there was no attempt made on the part of the defendant to contradict the instrument. It was simply an effort to establish as matter of fact that the contract was entered into under a mutual mistake of facts material to the .transaction and inducing or influencing the agreement, believed by both to be then existing,■ but in which belief both were honestly mistaken. In Kerr on Fraud and Mistake, at page 416, the author, speaking with reference to mistakes such as will avoid an agreement, says : “ Mistake may be common to both parties to a transaction, and may consist either in the expression of their agreement in some matter inducing or influencing the agreement, or in some matter to which the agreement is to be applied.” And he defines the mistake in fact to be one consisting in the belief in the present existence of a thing material to the transaction, which does not .exist.”

In Gillespie v. Moon (2 Johns. Ch., 596), Chancellor KENT [7]*7says : “It has been the constant language of the courts of equity that parties can have relief in a contract founded in mistake, as well as in fraud. The rule in the courts of law is that the written instrument does in contemplation of law contain the true agreement of the parties, and that the writing furnishes better evidence of the sense of the parties than any that can be supplied by parol. But equity has a broader jurisdiction and will open the written contract to let in an equity arising from facts perfectly distinct from the sense and construction of the instrument itself. # * * I have looked into most, if not all, the cases on this branch of equity jurisdiction, and it appears to me to bo established, and on great aud essential grounds of justice, that relief can be had against any deed or contract in writing, founded in mistake or fraud. The mistake may be shown by parol proof, and the relief granted to the injured party, whether he sets up the mistake affirmatively by bill, or as a defence.”

Whatever defence of that nature could be made formerly in equity can now be interposed in actions at law. • Where contracts have been reduced to writing the courts are vigilant and rigorous in excluding all antecedent and contemporaneous oral agreements tending to vary the terms of such contracts.

And, perhaps, no case has gone further in that direction than the late case of Wilson v. Deen (74 N. Y., 531). In that case both parties were well advised as to. the existing condition of facts, and there was no ground to allege mistake or fraud, but in the view the Court of Appeals took of the case the plaintiff, in executing a written lease under seal, relied upon a contemporaneous oral agreement in respect of important matters to be subsequently performed touching the property demised.

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Bluebook (online)
27 N.Y. Sup. Ct. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/funch-v-abenheim-nysupct-1880.