Hand v. Evans Marble Co.

40 A. 899, 88 Md. 226, 1898 Md. LEXIS 181
CourtCourt of Appeals of Maryland
DecidedJune 29, 1898
StatusPublished
Cited by12 cases

This text of 40 A. 899 (Hand v. Evans Marble Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hand v. Evans Marble Co., 40 A. 899, 88 Md. 226, 1898 Md. LEXIS 181 (Md. 1898).

Opinion

Pearce, J.,

delivered the opinion of the Court.

There are two questions for determination in this, case. The first of these is, whether the defendant is. liable to the plaintiff upon its assumption of certain obligations of William H. Evans & Son, to whose business, the defendant succeeded; and the second is; if not so-liable by reason of such assumption, whether any new and independent contract for the doing by defendant of certain work was ever entered into between the defendant and the plaintiff’s assignor, under which recovery can be had in this action.

Wm. H. Evans & Son were contractors largely engaged in the supply of materials and the performance of marble and tiling work for public buildings and private residences throughout the country; and Elwood S. Hand of New York City was a publisher of advertising books-, descriptive of such buildings, and of the business and workmanship of those employed in their construction. In September, 1891, Wm. H. Evans & Son entered into-four separate contracts in writing with Elwood S. Hand,, two being made September 5th for the payment by them of $265 on each contract for the publication of a. [228]*228certain advertisement in Hand’s book; the other two being made September 18th for the payment by them of $285 on each contract for the publication in like manner of a certain other advertisement. There was no time fixed for any of these payments but the two contracts first mentioned, bore beneath the signature the words “ payable as over,” and there was endorsed upon each the following stipulation: “ The within named amounts is available as a credit, and is to be deducted from our price for work, other than we have estimated upon, or contracted for, prior to the date hereof. In event of the said work not being given us, we are to be absolutely acquitted of any charge for this advertisement.” The two contracts last mentioned were subject to the following condition, embodied therein just before signature. “ This amount is only applicable, and is to be deducted from the price of new work.”

On May 1st, 1892, the firm of Wm. H. Evans & Son was dissolved, and the Evans Marble Company was incorporated with a capital stock of $100,000, part of which was represented by the machinery, fixtures and stock in trade of Wm. H. Evans & Son. On November 9th, 1895, Elwood S. Hand undertook to assign in writing the four contracts mentioned to - George B. Hand. The correspondence out of which this suit grew commenced in October, 1894, and the suit was instituted in August, 1896. The record shows that in a letter dated December 3d, 1894, the Evans Marble Company stated to Elwood S. Hand that it had succeeded Wm. H. Evans & Son and “ is responsible for any agreements entered into by them.” There is but one count in the declaration in which the plaintiff sets out at length, the four contracts mentioned and their assignment to him, and also avers an agreement between the defendant- and plaintiff’s assignor for the doing by defendant of certain work upon a house at Southport, Connecticut, belonging to the wife of plaintiff’s assignor for the sum of $1,161.55, in pursuance of the original contracts, and then set forth the assignment to him of this last-mentioned agreement. He further averred that his assignor [229]*229did and performed everything required of him, but that defendant refused to perform said work at Southport or to pay the said several sums of $265 and $265, $285 and $285, aggregating $1,100 in accordance with the original contracts, and claimed damages for these breaches of contract. At the close of the testimony the Court ruled that there was no legally sufficient evidence to establish any liability of the defendant, from which ruling this appeal is taken. In reference to the first question presented, the general rule has long been established that one who is not a party to a contract cannot be included in the rights and liabilities which the contract creates, so as to enable him to sue or be sued upon it.” “ A man cannot incur liabilities, and, again, a man cannot acquire rights from a contract to which he is not a party.” Anson on Contracts, 197. Or, as stated elsewhere, “ This rule embodies the principle, in whatever words expressed, that rights founded on contracts belong to the person who has stipulated for them, and to no other.” Dicey on Parties to Actions, 78.

No one can assign his liabilities under a contract without the consent of the party to whom he is liable, and even where this consent is given, Anson observes (page 205) that “ this is in effect, the rescission by agreement of one contract, and the substitution of a new one, in which the same acts are to be performed by different parties; ” and the same is expressed also in Dicey on Parties io Actions, 223-234. These fundamental prinples have been abundantly illustrated in familiar decisions. An illustration of the inability of one to sue on a contract to which he is not a party is found in Schmctling v. Tomlinson, 6 Taunton 147, where M. was employed by the defendants, X. & Co., to carry certain goods for them. M. delegated the employment to A. the plaintiff, who carried the goods without any communication with X. & Co. It was held that A. could not sue X. & Co. for the work done by him, “ since there was no privity between the plaintiff and the defendants. The defendants looked to M. only for the performance of the work, and M. had a right to look to them for pay[230]*230ment, and no one else had.” So also where defendants who had been in the habit of dealing with B., sent a written order for goods directed to B.; the plaintiff, who on that day had bought B.’s business, executed the order without notice to defendants. It was held that plaintiff could not maintain an action for the price of 'the goods against the defendant, Bramwell, B., saying: “ As to the difficulty that the defendants need not pay anybody, I do not see why they should, unless they have made a contract either express or implied.” Boulton v. Jones, 2 H. & N. 564. If in that case defendants had accepted the goods with knowledge of the facts, doubtless they would have been held liable upon an implied assumpsit.

In National Bank of St. Louis against The Grand Lodge of Missouri, a Masonic Association, issued bonds, some of which were in the hands of the creditors, and the Grand Lodge, by resolution, assumed payment of these bonds, provided stock to an equivalent amount was issued by the Association to the Grand Lodge, which was done, and the bank, as the holder of such bonds, sued the Grand Lodge for payment of coupons accompanying their bonds, and it was held the action could not be maintained, the Court saying: “ There is an insurmountable difficulty in the way of the plaintiff’s recovery. The resolution of the Grand Lodge was but a proposition made to the Masonic Hall Association, and, when accepted, the resolution and acceptance constituted at most only an executory contract inter partes. It was a contract made for the benefit of the association and of the Grand Lodge, made that the latter might acquire the ownership of the stock of the former, and that the former might obtain relief from its liabilities. The holders of the bonds were not parties to it, and there was no privity between them and the lodge.” Nat. Bank v. Grand Lodge, 98 U. S. 123. Approved in Keller v. Ashford, 133 U. S. 620.

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Cite This Page — Counsel Stack

Bluebook (online)
40 A. 899, 88 Md. 226, 1898 Md. LEXIS 181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hand-v-evans-marble-co-md-1898.