Harris v. Singh

283 P. 910, 34 N.M. 470
CourtNew Mexico Supreme Court
DecidedOctober 8, 1929
DocketNo. 3217.
StatusPublished
Cited by2 cases

This text of 283 P. 910 (Harris v. Singh) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Singh, 283 P. 910, 34 N.M. 470 (N.M. 1929).

Opinions

OPINION OF THE COURT

WATSON, J.

Defendant Argan Singh and interveners have appealed from a judgment in favor of J. A. Harris, plaintiff, upon promissory notes of $12,500 and $500, executed by defendant Rattn Singh, March 24, 1922, at Imperial, Cal. In the first count of the complaint appear usual allegations as to the execution and delivery of the $12,500 note by Rattn Singh, following which, in order to charge liability on the part of Argan Singh, the following allegations appear:

“VIII. That during the period of time commencing on or about the 1st day of February, 1919, and continuing thereafter and during all of the times hereinafter mentioned, defendants Argan Singh and Rattn Singh were copartners, doing a general farming business in the county of Imperial and state of California; that during the existence of said general copartnership it became and was necessary for the said copartners to borrow large sums of money to carry on said farming operations and to give notes, mortgages and other evidence of indebtedness and security for the repayment of the same; that in pursuance of said copartnership business the defendant Rattn Singh, being duly authorized by his said copartner, Argan Singh, so to do, and acting for and on behalf of said copartnership, did, for a valuable consideration, make, execute and deliver to the Farmers’ & Merchants’ Bank of Imperial, California, a banking corporation duly authorized and existing under the laws of the state of California, and conducting a general banking business at the city of Imperial, Imperial county, California, certain promissory notes; that under and by virtue of the said notes and evidence of indebtedness the said Farmers’ & Merchants’ Bank of Imperial did loan to the said defendants large sums of money, which said sums of money were used by the said defendants in the conduct of their general copartnership operations.
“IX. That of the amounts so advanced and loaned by the said bank to the said defendants Argan Singh and Rattn Singh, as copartners, there remained unpaid to the said bank on the 24th day of March, 1922, the sum of $13,000.00; that on the said 24th day of March, 1922, the said Farmers’ & Merchants’ Bank of Imperial, did, for a valuable consideration, on the day last aforesaid, sell, assign, transfer and set over to the said J. A. Harris the said indebtedness remaining due said bank in the amount of $13,-000.00, and did then and there indorse, assign and deliver to the said J. A. Harris, plaintiff herein, the notes and securities representing .said indebtedness held by said bank.
“X. That on the said 24th day of March, 1922, in order to renew and extend a part of the said indebtedness of the said Argan Singh and Rattn Singh, acting for and on behalf of himself and the said Argan Singh, with authority from the said Argan Singh so to do, made, executed and delivered to the said plaintiff, J. A. Harris, the promissory note hereinabove mentioned and set forth, which said promissory note is still had, held, possessed and owned by the said plaintiff, J. A. Harris. That the said Argan Singh and Rattn Singh have disposed of all property belonging to their said copartnership.”

In the second count the same allegations appear with respect to the $500 note.

The. demurrer of defendant Argan Singh was. overruled, and, after trial to the court, the following material findings • were made:

“I. That the defendants Argan Singh and Rattn Singh were copartners and as such operated certain farm ranches situated in the county of Imperial and state of California during the years 1919, 1920 and 1921.
“II. That the defendants are natives of India and belong to a certain tribe or sect known as Sikhs,' that numerous natives of India and Sikhs were, during the years 1919, 1920 and 1921 engaged in farming in the Imperial Valley, California, and in the neighborhood in which the said defendants operated; that it was the custom, usage and practice of these natives of India, when they associated themselves together as copartners, to appoint one of their number to transact the business of the partnership; that Rattn Singh acted in this capacity in the transaction of the partnership business of the defendants Argan Singh and Rattn Singh.
“III. That for the use of the said partnership business and in operating the said farm ranches the said Rattn Singh acting for the said copartnership consisting of himself and the defendant Argan Singh, during the period of time commencing on or about the 1st day of February, 1919, and continuing throughout the years 1920 and 1921, borrowed large sums of money of the Farmers’ & Merchants’ Bank of Imperial, California, and executed on behalf of the said copartnership two promissory notes payable to the said bank; that on the 24th day of March, 1922, the said promissory notes were and remained unpaid, the aggregate amount due thereon at that date being $13,000.00; that on the said 24th day of March, 1922, for a valuable consideration, the Farmers’ & Merchants’ Bank of Imperial, California, sold, assigned, set over and delivered the said promissory notes to the plaintiff, J. A. Harris.
“IV. That on the 24th day of March, 1922, in order to renew and extend the partnership indebtedness of the said Argan Singh and Rattn Singh, the defendant Rattn Singh, acting for and on behalf of himself and the said Argan Singh, and in accordance with and pursuant to the aforesaid custom, usage and practice, made, executed and delivered to the plaintiff the promissory note for the principal sum of $12,500.00 mentioned and set out in paragraph IV of the plaintiff’s complaint.
“V. That on the said 24th day of March, 1922, the said co-partnership was indebted to the said Farmers’ & Merchants’ Bank of Imperial, California, over and above the amount of $12,500.00 set out in the first promissory note herein mentioned, in the additional sum of $500.00; that on the date last mentioned the said bank, for a valuable consideration, assigned the amounts due it from the said partnership and evidences thereof to the plaintiff; that on the 24th day of March, 1922, in order to renew and extend that part of said indebtedness which had not already been renewed and extended • by the promissory note for $12,500.00 above mentioned, the said Rattn Singh, acting for and on behalf of himself and the said Argan Singh, and according to the custom, usage and practice of the said partnership, executed and delivered to the plaintiff the promissory note for $500.00 mentioned and set forth in paragraph IV of the plaintiff’s complaint.
“VI. That in executing and delivering the said two promissory notes the said Rattn Singh did so in conformity to custom, usage and practice of the said natives of India residing and operating in the community and in conformity to usage and practice of the said defendants in their partnership transactions.”

Appellants first contend that Argan Singh, not being a party to the note, cannot be held liable thereon.

They cite section 18 of the Negotiable Instruments Act (Laws 1907, c. 83; Code 1915, § 612). They also cite Luna v. Mohr, 3 Gild. (N. M.) 63, 1 P. 860, and Bank v. Flournoy, 24 N. M. 256, 171 P. 793.

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Related

Loucks v. Albuquerque National Bank
418 P.2d 191 (New Mexico Supreme Court, 1966)
Harris v. Singh
28 P.2d 1 (New Mexico Supreme Court, 1933)

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Bluebook (online)
283 P. 910, 34 N.M. 470, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-singh-nm-1929.