Gallagher v. McBride

49 A. 582, 66 N.J.L. 360, 37 Vroom 360, 1901 N.J. Sup. Ct. LEXIS 84
Supreme Court of New Jersey·Decided June 10, 1901·Published·Cited by 3 cases

Opinion

The opinion of the court was delivered by

Depue, Chief Justice.

The plaintiff was a grocer in Jersey City. He had supplied Dr. McBride, the brother of [362] the defendant, with groceries and meat until 1894, when the doctor died, leaving a widow and five infant children. The defendant was appointed guardian for these children. The-plaintiff called on the defendant in regard to continuing to deal with the widow. McBride testified to the effect that he thought he could use the infants’ estate to pay bills for groceries and meat furnished to the family of the doctor. He wrote a letter to the plaintiff, of which this is a copy:

“Jersey City, August 28, 1894.
■ “You give Dr. McBride widow all the meat and groceries they want for one week, and bring me the bill every Tuesday morning.
(Signed) “Horace McBride.”

Gallagher supplied the widow with groceries and meat until some time in 1897, receiving pajunents from McBride from time to time, which payments were always made out of the estate of the five infants. McBride received no part of the groceries or meat. The bills for them were made out to the widow, as a purchaser, and were from time to time sent to McBride, on which he made various payments.

Under the agreement of August 28th, 1894, meat and groceries were furnished until the bill amounted to $1,700, which, with credits, was reduced to $562.73, for which this suit was brought. The construction the parties put upon this agreement constitutes it a continuing agreement. The plaintiff was to furnish meat and groceries that the family would want for one week, and bring in the bill every Tuesday morning. That language indicates that this contract was not to be restricted to a single week.

In addition to the letter of August 28th, 1894, by a paper dated November 8th, 1897, the defendant, describing himself as guardian of these children, certified that he had delivered to Thomas Gallagher a d'eed for the premises of the infants; that the purchase-price to be paid was as follows: “Taxes, assessments,” &c., and then follows this clause: “And to credit the balance of said purchase-money on account of the [363] bill for groceries sold by Mm to me as such guardian. Said Gallagher also agrees to extend the time for the payment of the balance of said bill for groceries for the period of three months.” (Signed) “Horace McBride.”

The suit was brought to recover the balance due on this .bill, and resulted in a verdict for the plaintiff for $583.91. The question in the cause is whether the defendant is personally liable for the payment of this debt. The contention is that in virtue of the statute of frauds he incurred no personal obligation for the payment of these goods. It will be observed at the outset that he signed the letter as an individual, and not as guardian or as acting in a representative capacity.

The undisputed facts are that Mrs. McBride, the widow, ordered and received every portion of the goods for which this suit was brought, and they were charged to her by the plaintiff; that the plaintiff never ordered any part thereof, except under the written order which has already been referred to; that payments on account of the purchase-money were paid from the estate of the infants and widow in the hands of the defendant. Another fact must be borne in mind- — -that the credit in this instance was given to the defendant in virtue of a written order, and that neither the widow nor the children were personally called upon to pay any part of these bills.

In answer to the plaintiff’s claim, the defendant sets up the statute of frauds as a defence. He contends that the widow, in this instance, was the original debtor, and that .the defendant’s undertaking was collateral. If this contention is verified, this suit must fail, for the written order in this ease does not purport to be a contract of guaranty within the statute of frauds. The law on this subject is well settled. The goods in this ease were delivered to the widow. If she became personally liable, either by express or implied contract, for them, the engagement of the defendant, although made at the same time and upon the same consideration, is a promise to pay the debt of a third person within the statute, and should be in writing. Biit if the articles in question were [364] supplied entirely on the credit of the promisor, so that the third party is not liable at all, then the promise is not within the statute. The test is this: Where the promise is made before the credit is given, to decide whether one promising is an original debtor dr a guarantor, namely, whether credit was given to the person receiving the goods. If it was, then such promisor is a guarantor only, undertaking to pay another’s 'debt. If no credit was given to the person receiving the goods, then the promisor himself is debtor for goods sold to him and delivered to a third party by his order. Such a promise is not a promise to pay the debt of another. If such was the original promise on the part of the defendant, the fact that the. goods were delivered to the widow and were for the benefit of the widow and children is wholly unimportant. Hetfield v. Dow, 3 Dutcher 440, 452; Cahill v. Bigelow, 18 Pick. 369, and cases cited in Hetfield v. Dow; Hazeltine v. Wilson, 26 Vroom 250; Birkmyr v. Darnell, Salk. 27, 1 Sm. Lead. Cas. 326; Clark Cont. 95; Brown St. of F., § 197. In such cases, the important question is, to whom is the credit given? If the person receiving the goods is liable to pay for them, then, ordinarily, the promise of a third person to pay for them is collateral liability, and not actionable, unless in writing. But if the vendor sells goods solely on the credit of one person, and, at his request, delivers them to another, the former is alone liable, and his liability is not affected by the fourth section of the statute. The fact that the goods are charged to the person to whom delivered is not conclusive that they were sold on his credit. The question whether the defendant’s undertaking is an original undertaking or collateral, must be determined from all the facts in the case. 1 Benj. Sales, § 112, and notes (Corbin's ed.); 6 Eng. Rul. Cas. 296, 297.

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Gallagher v. McBride, 49 A. 582, 66 N.J.L. 360, 37 Vroom 360, 1901 N.J. Sup. Ct. LEXIS 84 (N.J. 1901).

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