Gram v. Seton

1 Hall 262
CourtThe Superior Court of New York City
DecidedDecember 15, 1828
StatusPublished
Cited by17 cases

This text of 1 Hall 262 (Gram v. Seton) is published on Counsel Stack Legal Research, covering The Superior Court of New York City primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gram v. Seton, 1 Hall 262 (N.Y. Super. Ct. 1828).

Opinion

Jones, C. J.,

delivered the opinion of the court.

This is an action of covenant on a charter-party of affreightment of the brig Fancy, Miner, master, for a voyage from New-York to Angostura and back, to recover of the defendants, as the charterers, the stipulated freight, and further demands for demur-rage and passage money.

.The defendant ci^ved oyer, and then pleaded non estfactum, and payment of the stipulated freight money. The evidence in support of the latter plea does not appear in the case, yet'it must have been proved or admitted, for the verdict of the jury is for $63 only, which could not be for the freight of the vessel. The defendant avers, in pleading, that the freight has been paid; the verdict of the jury is in accordance with that averment, and as the plaintiff does not complain of the finding of the jury on that ground, I must assume the fact to be so. It is only important, however, in its bearing upon the merits of the defence under the other issue, by which the defendants deny the execution of the charter-party by them ; and this opens the great question between the parties. It appears that Gram, the plaintiff, who was the owner of the vessel, let her to freight, for the voyage in question, to the defendants, who were co-partners in a house of trade, under the firm of Seton & Bunker, established at Angostura, Seton acting as agent of the firm, at a stipulated freight, with certain reservations; and under an agreement for demurrage, in case of delay, in lading and discharging at the outward and homeward ports, beyond the times agreed upon and allowed for that purpose. The defendants had the use of the vessel for the voyage. She was loaded by Seton at New-York, with a cargo consigned to Bunker at Angostura, which was received by him there, and a return cargo put on board of her by him, with which she returned to New-York. But the charter-party, which turns out to be an informal instrument, under seal, more resembling a memorandum or note of an agreement, afterwards to be reduced to form, than a deed of charter-party, is signed on the part of the defendants by Seton, with the co-partnership-name of “ Seton & Bunkerand it appears that Bunker, the other partner, who resides at Angostura, and conducts the business of the house at that place, was not present [268]*268at the time. On this supposed defect in the execution of the deed, the defence hinges. And the charterers, after having had the whole benefit of the charter, and after having acted upon the contract, with full knowledge by both parties of its form and con- . . . tents, and after Ml payment of the freight in conformity to its tenor, to repel a further claim to an unimportant amount, avail themselves of the technical objection of the^want of authority in Seton to bind his co-partner by seal to avoid the demand. The judge, who tried the issue, ruled, that the jury might infer a general authority in Seton to execute for Bunker from the co-partnership, and the subsequent acts and assent of Bunker; and that a special authority to execute this charter-party need not be shown; but that if they believed from the circumstance, that Bunker had given Seton general powers to execute for him all instruments which, according to the usage of their business, were necessary to be executed under seal, it would be sufficient to establish this charter-party against Bunker, and he so charged the jury. Under this charge, the jury found a verdict for the plaintiff. The defendants excepted, and now move for a new trial on the ground, 1st. That no proof was given of the execution of the charter-party by Bunker; and 2d. That the judge misdirected the jury.

The principle, that a partner cannot, by virtue of the authority lie derives from the relation of co-partnership, bind his co-partner by deed, has been too long" settled to be now shaken. It is the technical rule of the common law applicable to deeds, which has been engrafted into the commercial system of the law of partnership ; and unless the charter-party in question can, under the circumstances of this case, be construed to be the deed of' Bunker, the defence must prevail. The reasons for the restrictions are not very satisfactory : for all the mischiefs, which the expositors of the rule ascribe to the authority of members of a co-partnership to seal for their co-partners, may flow almost as extensively, and nearly with equal facility, from the use of ..he name and signature of the co-partnership. The dangers of allowing the use of a seal to the members of a co-partnership, are supposed to consist in these two attributes of the seal: that it imports a consideration, and that it is competent to convey absolutely, or [269]*269to charge and encumber real estate. But negotiable paper, by which the partner may bind the firm, equally imports a consideration with a seal; and upon general principles, the use of the seal of the co-partner, equally with the signature of the co-partnership, would, if permitted, be restricted to co-partnership purposes and co-partnership operations solely; and the joint deed of the co-partners executed by the present for the absent members, be held competent to convey or to encumber the copartnership property alone, and to have no operation upon the private funds or separate estate of the co-partners. With these restrictions upon the use and operation of the seal, is not the power of a partner to bind his co-partner, and to charge and encumber his estate, as great and as mischievous, without the authority to use the seal of the absent partner, as it would be with that authority ? Those powers undeniably place the fortune of the members of a general co-partnership, to a great degree, at the disposal of any one of the co-partners ; but it is necessary to the beneficial management of the joint concern, that extensive powers should be vested in the members who compose it; and when the copartners live remotely from each other, their joint business concerns cannot be advantageously conducted or carried on without a latitude of authority in each, which is inconsistent with the perfect safety of the other co-partners. It cripples the operations of a partner, whose distant residence precludes a personal co-operation, to deny him the use of the seal of his co-partner for instruments requiring it, and which the exigencies of their joint concerns render expedient or beneficial to them. He must be clothed with the power to execute deeds for his co-partner when necessarily required, for the purposes of the trade ; and if that authority is not inherent in the co-partnership, it must be conferred by letter of attorney, and it must be general, or it will be inadequate to the ends of its creation. A co-partnership, especially, which is employed in foreign trade, and has occasion to employ ships for the transportation of merchandise, or to borrow money on respondentia, if its members are dispersed, as is often the case, must be seriously embarrassed in its operations by the application of the rule that requires every co-partner, who is to be bound by the charter-party or the respon[270]*270dentia bond, to seal it personally, or by attorney duly constituted for that specific purpose, with his own seal. Similar difficulties would arise out of the same rule, when the operations of the house required the co-partnership to execute other deeds.

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Bluebook (online)
1 Hall 262, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gram-v-seton-nysuperctnyc-1828.