Hauswald v. Katz

216 A.D. 92, 214 N.Y.S. 705, 1926 N.Y. App. Div. LEXIS 9162
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 19, 1926
StatusPublished
Cited by10 cases

This text of 216 A.D. 92 (Hauswald v. Katz) 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
Hauswald v. Katz, 216 A.D. 92, 214 N.Y.S. 705, 1926 N.Y. App. Div. LEXIS 9162 (N.Y. Ct. App. 1926).

Opinion

Finch, J.

The complaint alleges that on or about June 15, 1924, the Metro Flower Manufacturing Corporation duly executed and delivered to the plaintiff its certain promissory notes. Further, it alleges by paragraph 3:

That contemporaneously with the delivery to plaintiff of said notes the defendants made and delivered to plaintiff their written guaranty of payment of said notes, of which the following is a copy:
[93]*93Durr & Hauswald,
“ Sebnitz, Sachsen, Germany:
“ Gentlemen.— We, the undersigned, hereby agree to pay the following notes, made out by the Metro Flower Mfg. Corp.
531.92...................... due October 15th
600.00 ...................... “ November 15th
625.00 ...................... “ December 15 th
625.00 ...................... “ January 15, 1925
625.00 ...................... “ February 15th
1.250.00 ...................... “ March 15th
1.250.00 ...... “ April 15th
1.250.00 ...................... “ May 15th
1.250.00 ...................... June 15th
1.250.00 ...................... “ July 15th
500.00 ...................... August 15th
600.00 ...................... “ September 15th
625.00 ...................... October 15th „
625.00 ...................... November 15th
625.00 ...................... “ December 15th
Very truly yours,
“JACOB KATZ
“ ‘ MORRIS 5 B. JACOBSOHN.”

And then by paragraph 4:

That in consideration of said guaranty and in reliance thereon plaintiff sold and delivered to the Metro Flower Manufacturing Corp., large quantities of merchandise, taking therefor the promissory notes of the said Metro Flower Manufacturing Corp.”

The action is predicated upon the second, third and fourth of the above notes.

It is further alleged that none of said notes were paid at maturity and defendants have paid no part thereof, wherefore, the plaintiff demands judgment against the defendants' for the sum of $1,850, with interest.

The answer denies each and every allegation contained in paragraphs 3 and 4 of the complaint. The affidavit submitted on behalf of the plaintiff in support of the motion for summary judgment alleges that in January and February, 1924, the Metro Flower Manufacturing Corporation purchased certain merchandise of the plaintiff and received delivery of the same on or about March 5, 1924. Said affidavit further recites that “ on June 15, 1924, said corporation made and delivered to plaintiff fifteen promissory notes of the total value of $12,168.92 and at the same time defendants made and delivered to plaintiff their guaranty of payment of said notes.” It thus appears from the plaintiff’s [94]*94own version of the transaction that the alleged guaranty was executed and delivered more than three months after the delivery of the goods sold by the plaintiff to the Metro Corporation. The guaranty in question, therefore, was not executed and delivered, pursuant to an understanding had before the principal obligation was incurred.

Under the present state of the pleadings, where no question is raised concerning the Statute of Frauds, it is incumbent upon the plaintiff to prove a consideration for the alleged guaranty, for it is well settled that where a guaranty of payment is made subsequent to the creation of the debt, and the credit was not extended upon a promise of such guaranty, the consideration of the original obligation will not support the guaranty.

As was said by Weight, J., in Church v. Brown (21 N. Y. 315, 325): A past consideration, unless done at the request of the promisor, is not sufficient to support any promise. * * * So that construing a promissory note, or any contract for the payment of an existing debt, with the instrument of guaranty, instead of being able to imply or infer from the terms and language of the instruments taken together, a consideration for the guaranty, no binding contract of guaranty even could be inferred; and herein lies the plain distinction between this case and * * * cases cited, where the guaranty was of a debt to be contracted on the credit of the guaranty, and the consideration a future one.”

In addition, on behalf of the defendants, there was submitted in opposition to the motion for summary judgment" an affidavit of the defendant Jacobsohn, in which it is alleged that the aforesaid letter upon which the plaintiff relies as a guaranty, was a letter of the Metro Corporation signed by the corporation and by the individual defendants as officers of the corporation, and was merely intended to be an offer by the corporation to pay its debt by means of the inclosed notes, but was not intended to be in any sense a guaranty of payment of said notes. In this connection it is alleged by the defendants that the name of the Metro Corporation was erased from said letter with which the notes were inclosed as aforesaid, after the letter was forwarded to the plaintiff. While it may be argued that because the Metro Corporation could not reasonably have intended to guarantee its own debt, the inference is that the corporate name" was put on inadvertently and, therefore, erased by the defendants before delivery, yet the question whether the corporate name appeared upon the letter when it was mailed becomes one of fact for the consideration of a jury in the light of the evidence which may be adduced. If it be assumed that the corporate name appeared above the names of the individual defend[95]*95ants when the letter was sent to the plaintiff, then the defendants would be entitled to introduce evidence to show that the letter was written solely on behalf of the corporation and signed by the defendants as officers of the corporation. In Hoffstaedter v. Carlton Auto Supplies Co., Inc. (203 App. Div. 494) the action was brought upon a promissory note executed by a corporation and by an individual. Said note contained the promissory recital in the plural, i. e., “ We promise to pay.” The court by Merrell, J., said: “ The defendant offered to prove facts and circumstances attending the execution of the note to show that it was not the individual note of the defendant Lichtenstein, but that it was solely#the note of the corporate defendant, and that the defendant Lichtenstein had no personal transactions with the plaintiff whereby he was to be personally bound. This offer was objected to by counsel ■for the plaintiff, and said objection was sustained by the trial court * * *.

“We think the trial court erred in refusing to permit the defendant to give evidence of the circumstances under which the note was made and to show that it was not the individual note of the defendant Lichtenstein, but of the corporation.”

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Bluebook (online)
216 A.D. 92, 214 N.Y.S. 705, 1926 N.Y. App. Div. LEXIS 9162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hauswald-v-katz-nyappdiv-1926.