Glor v. Kelly

63 N.Y.S. 339
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 21, 1900
StatusPublished
Cited by2 cases

This text of 63 N.Y.S. 339 (Glor v. Kelly) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glor v. Kelly, 63 N.Y.S. 339 (N.Y. Ct. App. 1900).

Opinions

SPRING, J.

The plaintiffs were co-partners in the business of manufacturing barrels in the city of Buffalo. In July, 1896, they established a branch factory at Lewiston, in Niagara county. This manufactory was in a shop owned by one Carney. The plaintiffs and Carney entered into an arrangement whereby they were to ship stock to their order, which was to be received by Carney, and by him put together into barrels, and to be sold by him, and the profits, if any, were to be divided equally between them. The title- to the stock and barrels, however, was to remain in the plaintiffs until sold, and Carney was to act as the agent of the plaintiffs. This project was carried out, and the plaintiffs furnished a man to as[340]*340sist Carney. The latter sold 1,230 of these barrels to James H. Kelly, now deceased, and the proof tends to show Kelly had in some manner settled with, Carney for these barrels, and that the latter omitted to pay over the avails to his principals, the plaintiffs, dn December 28, 1896, the plaintiffs wrote to Kelly requesting payment of “our account, $324.21.” Mr. Kelly replied, under date of December 30, 1896: “Yours of the 28th to hand. We bought from and settled with Mr. Carney for all the apple barrels used this season.” The plaintiffs did not again write to Kelly, and during his lifetime made no attempt to enforce the claim against him. They did, however, immediately turn their attention to their agent, Carney. On the day following the letter of Kelly they wrote to Carney as follows: “Dear Sir: We just received a letter from J. H. Kelly, saying he bought from and settled with you for all the apple barrels he used this season, and we hope to receive remittance from you for his account by return mail.” In a letter under date of January 8, 1897, Carney replied to the plaintiffs’ letter as follows: “If Alex, did not explain the Kelly deal, I will let you know it in my next letter.” The Alex, referred to was an employé of plaintiffs, who had assisted Carney at Lewiston, and the letter, therefore, implies that their employé was cognizant of Kelly’s adjustment with Carney, and that it was not a secret arrangement between the two. On the day succeeding the plaintiffs wrote to Carney, stating they were ignorant of any deal with Kelly, and requesting information, “as we want to close this up as soon as possible.” On February 28th Carney wrote to the plaintiffs: “The difference between you and Kelly and I is that you must look to me for your pay. I have money coming to me in March, and I will settle with you the minute I get it.” The plaintiffs replied on the day following: “Note what you say regarding Kelly’s account. That will be satisfactory to us. Hope you will settle up this account as soon as you receive money due you, which we trust will be soon.” On March 11th the plaintiffs again wrote their agent: “We trust that the money you are to receive to pay up Kelly’s account will soon come in, as we ought to have it now, and send it to us and any other as soon as you can.” And on April 6th they urged him to pay, and asked him to give his note “for amount due on the Kelly account.” They requested that the note be made due in 60 days, and, if on its maturity he was unable to meet it in full, they would renew it in part, and added, “This will give you time, and will help us now.” On April 23d, and again May 26th, they urged him to pay; adding, however, in the latter letter, that unless he paid they would be “compelled to look to Kelly.” To summarize the situation disclosed by this correspondence, we find that the barrels were sold to Kelly, who settled with Carney, and the plaintiffs were unaware of the adjustment, and requested payment from Kelly, who very promptly apprised them of the settlement with Carney. From that time they abandoned any endeavor to pursue Kelly, but devoted their energies to their agent, and accepted the adjustment he had made with Kelly. If the plaintiffs sought to repudiate the authority of their agent, it was incumbent upon them to act fairly with Kelly, [341]*341and, without delay, advise him they disavowed the transaction with Carney. As Chancellor Kent says in his Commentaries (volume 2, p. 616): When the principal has been informed of what has been done, he must dissent, and give notice of it in a reasonable time, and, if he does not, his assent and ratification will be presumed.” They did not seek to discredit the authority of their agent. After Carney informed them they must look to him for pay, there was no disclaimer of their purpose to do so, but, on the contrary, they were swift to respond, on the day succeeding the agent’s letter, that this course “will be satisfactory to us.” Assuming the agent exceeded his authority in the transaction with Kelly, here is a plain ratification of it. This is not an affirmance without knowledge of the facts. They did know that Kelly had settled with their agent, and this information was not based entirely upon Kelly’s letter, but was confirmed by Carney. Their declaration that this was satisfactory to them expressed their purpose to look to Carney, and that course was followed. They made their election, therefore, after understanding the situation, and that election was irrevocable. Andrews v. Insurance Co., 92 N. Y. 596.

The fact that the plaintiffs did not advise Kelly they intended to disregard his settlement with their agent does not aid them. The duty was upon them to speak when confronted with Kelly’s disclaimer of his liability to them. As is said in Mechem, Ag. § 153: “It is a maxim of the law that he who remains silent when in conscience he ought to speak will be debarred from speaking when in conscience he ought to remain silent, and this rule is of frequent application in determining whether or not an alleged principal has set the seal of his sanction upon a transaction assumed to have been done in his behalf.” If, however, we assume plaintiffs did not possess full knowledge of the facts before expressing their satisfaction with the explanation of their agent, the information was available to them. If they saw fit to rely upon the knowledge they then had, without making further inquiries, they cannot now be heard to question the sufficiency of their information. It is said in Ewell’s Evans, Ag. p. 63: “When one individual deliberately, whether with full knowledge or without inquiry, ratifies the act or conduct of another, no question arises respecting the fact of ratification.” But Carney’s letter of January 8th inferentially, at least, implies that Shaw, their employé, knew of this adjustment, and their assent to it was some time after the date of this letter. Presumptively, they inquired of Shaw and obtained full information of the acts of their agent. Whart. Ag. § 65; Meehan v. Forrester, 52 N. Y. 277; Hyatt v. Clark, 118 N. Y. 563, 23 N. E. 891.

When Shaw was mentioned as possessing knowledge, the conclusion seems irresistible they inquired into the circumstances before stamping Carney’s conduct with their approval. They were responsible for the agency of Carney, and during this correspondence he was acting as their collecting agent. The letters bristle with facts showing he was receiving money for them. They were not imputing anything discreditable to him, or even complaining of his transaction with Kelly, but they were continuing his authority to represent them. [342]*342Their relations are in vindication of his conduct. Business men do not in the same breath accuse their agent of dishonesty and peculation, and still retain him in a responsible position, with authority to continue performing the precise trust out of which'the charges arose. ’

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Bluebook (online)
63 N.Y.S. 339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glor-v-kelly-nyappdiv-1900.