Godkin v. Monahan

83 F. 116, 27 C.C.A. 410, 1897 U.S. App. LEXIS 2077
CourtCourt of Appeals for the Seventh Circuit
DecidedNovember 8, 1897
DocketNo. 448
StatusPublished
Cited by16 cases

This text of 83 F. 116 (Godkin v. Monahan) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Godkin v. Monahan, 83 F. 116, 27 C.C.A. 410, 1897 U.S. App. LEXIS 2077 (7th Cir. 1897).

Opinion

JENKINS, Circuit Judge

(after stating the facts). We have on. several occasions spoken to the rule that excludes parol evidence of verbal negotiations to contradict or vary the terms of a subsequent [119]*119written contract. In Union Stock-Yards & Transit Co. v. Western Land & Cattle Co., 18 U. S. App. 438-153, 7 C. C. A. 660, and 59 Fed. 49, we declared the principle that the written agreement speaks, conclusively, the conclusion to which the parties to it have arrived, and all prior negotiations are merged in it, and that, where the language of an instrument has a settled legal construction, parol evidence is not admissible to contradict that construction. That ruling was approved and reasserted in Gorrell v. Insurance Co., 24 U. S. App. 188, 11 C. C. A. 240, and 63 Fed. 371; Union Nat. Bank of Oshkosh v. German Ins. Co. of Freeport, 34 U. S. App. 397, 18 C. C. A. 203, and 71 Fed. 473; Lumber Co. v. Comstock, 34 U. S. App. 414, 18 C. C. A. 207, and 71 Fed. 477. In the Comstock Case, following and approving the decisions in Thomas v. Scutt, 127 N. Y. 133, 27 N. E. 961, and Naumberg v. Young, 44 N. J. Law, 331, we further held that, “whenever the contract purports on its face to be a memorial of the transaction, it supersedes all prior negotiations and agreements, and * oral testimony will not be admitted of prior or contemporaneous promises on a subject so clearly connected with the principal transaction with respect to which the parties are contending as to be part and parcel of the transaction itself, withou t the adjustment of which the l>artics cannot be considered as having finished their negotiations and finally concluded a contract.” We recognize the rule that parol evidence may be received of the existence of an independent oral agreement not inconsistent with the stipulations of the written contract in respect to which the writing does not speak, but not to vary, qualify, or contradict, add to, or subtract from, the absolute terms of the written contract. The collateral agreement which may be proven by parol evidence must relate to a subject distinct from that to which the written contract applies. We believe these principles to be fully in accord with the rulings of the ultimate tribunal. Specht v. Howard, 16 Wall. 564; Forsyth v. Kimball, 91 U. S. 291; Brown v. Spofford, 95 U. S. 474; Insurance Co. v. Mowry, 96 U. S. 544; Thompson v. Insurance Co., 104 U. S. 252, 259; Bast v. Bank, 101 U. S. 93, 96; Martin v. Cole, 104 U. S. 30, 38; Richardson v. Hardwick, 106 U. S. 252, 1 Sup. Ct. 213; Burnes v. Scott, 117 U. S. 582, 585, 6 Sup. Ct. 865; Falk v. Moebs, 127 U. S. 597, 8 Sup. Ct. 1319; De Witt v. Berry, 134 U. S. 306, 10 Sup. Ct. 536; Seitz v. Machine Co., 141 U. S. 510, 12 Sup. Ct. 46; Van Winkle v. Crowell, 146 U. S. 42, 13 Sup. Ct. 18; McAleer v. U. S., 150 U. S. 424, 14 Sup. Ct. 160; Harrison v. Fortlage, 161 U. S. 57, 63, 16 Sup. Ct. 488. These principles are also supported by the law of the state where this contract wras made. Hei v. Heller, 53 Wis. 415, 418, 10 N. W. 620; Cliver v. Heil (Wis.) 70 N. W. 346.

We have not failed to consider the case of The Poconoket, 28 U. S. App. 600, 17 C. C. A. 309, and 70 Fed. 640, which was strongly urged to our attention. There the written agreement provided for tlje construction of a passenger steamer, payment therefor to be made at stated periods during the progress of the construction. A portion of such payment maturing before the completion of the vessel could be made in bonds of the company contracting for the building of the-[120]*120vessel, to be secured by mortgage upon certain described premises, and also by mortgage upon a certain steamer then owned by that company, and upon the steamer to be constructed under the agreement. The court held that the contract did not embody the 'entire agreement, and that it was admissible to show an oral agreement to the effect that the title should vest in the company before delivei-y of possession. Without stopping to inquire whether the decision could not have been sustained upon the ground that the written agreement, in virtue of the clause providing for a mortgage of the vessel during the process of its construction, contemplated title in the purchaser, it is sufficient to say that the court bottomed its decision upon the assumption that the contract was silent upon the subject of title, and that by the law of this country (counter to that of England) the title was in the bxxilders, and then held that the parol agreement with respect to the title was collateral and indepeixdent, and could be given in evidence. The lower court admitted the evidence upon the rulings of the supreme court of Pennsylvania, which court has gone to an extreme in the admission of evidence to vary written agreements. The court of appeals affirmed the decree upon the strength of those decisions, and of certain other cases cited, notably certain English cases, wrhich are reviewed and disapproved in Naumberg v. Young, supra. The law of a contract at the time it is made inheres in and becomes a term of the contract, and, it is settled, cannot be changed by subsequent legislation. Still less, as it seems to us, can the law of the contract be changed by parol negotiations incident to the writing. Such a verbal agreement does not relate to a collateral subject, to one distinct from that to which the coxxtract applies, but to that which inheres in, and, under the law, is a term of, the contract, and part and parcel of it. This decision seems to us to be directly opposed to the decision of the supreme court in Van Winkle v. Crowell, supra. With deference, we cannot permit the decision in The Poconoket to control our judgment, or avail with us to undermine or weaken a principle and a rule of evidence which we deem absolutely essential to the protection of rights of property.

It is also well settled with respect to the interpretation of contracts that an engagement to perform an act involves an undertaking to secure the means necessary to the accomplishment of the object, and that whatever is necessary to the performance of the undertaking is part and parcel of the contract, and, although not specified in the contract, is to be implied, and is in judgment of law coxxtained in it. U. S. v. Babbitt, 1 Black, 61; Lawler v. Murphy, 58 Conn. 309, 20 Atl. 457; Currier v. Railroad, 34 N. H. 498; Savage v. Whitaker, 15 Me. 21; Rogers v. Kneeland, 13 Wend. 144; Johnston v. King, 83 Wis. 8, 53 N. W. 28; Manistee Iron Works Co. v. Shores Lumber Co., 92 Wis. 21, 65 N. W. 863.

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Bluebook (online)
83 F. 116, 27 C.C.A. 410, 1897 U.S. App. LEXIS 2077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/godkin-v-monahan-ca7-1897.