Henshaw v. Bryant

5 Scam. 96
Illinois Supreme Court·Decided December 15, 1842·Published

Opinions

CATON, Justice,

delivered the opinion of the court: (1) At the December term, 1837, of the Peoria circuit court, the complainant filed his bill in chancery, alleging that he is a merchant in Boston; that in January, 1837, the defendant' Burlingame, in writing, and by his agent, William Gifford, Jr., applied to him to purchase a large amount of merchandise oh credit; that the complainant, at the time of the application, was a stranger to Burlin-game, his circumstances, and credit; that for the purpose of obtaining the credit, Burlingame presented to the complainant a written statement of his circumstances, which he represented to be correct, whereby he showed himself to be possessed of real and personal estate to the amount of $17,000, and that his indebtedness was about $7,300; that Gifford told the complainant he thought he might rely on said statement, and that he believed Burlingame to be honest; that relying on these statements and representations, the complainant sold and delivered to Gif-ford, as the agent of Burlingame, goods to the amount of [* 98] $5685.52, on a credit of six and twelve months; that the goods were received by Burlingame, in Peoria, in good condition, a part of which he had sold, and the balance were then in his possession, or in the custody of the law, as afterwards stated in the bill; that the said statements of Gifford were false and fraudulent, and that Burlingame was greatly insolvent, which he well knew; and so the complainant said that he had been cheated out of the said goods.

That the other defendants attached many of the goods for debts due from Burlingame to them, before the purchase thereof, and that Bryant, the sheriff of Peoria county, had the goods in his possession, on the writs of attachment. These goods were named in schedule (A) annexed to the bill. The complainant avers that he would not have sold the goods on a credit, but for the fraudulent representations of Burlingame and Gifford; that complainant did not discover the fraud till after the goods had been received at Peoria, and that they have not been paid for. He avers that by reason of the fraud he has not been divested of the title to the goods, and that he fears they will be sold on the attachments, before he can get possession of them by legal process. He prays that the goods may be delivered up to him, and for an injunction. Bryant, the sheriff, H. Froth, and H. F. Froth, attaching creditors, except the issuing and levy of the attachment which they admit, answered and deny all knowledge of the matters stated in the bill.

A replication was filed and proofs .taken.

Tile deposition of John F. Ward, of Boston, states, that in January, 1837, one Gifford came to the counting room of the complainant, in Boston, and stated that he came to purchase goods for Burlingame. Witness was the complainant’s clerk, and heard the various conversations between the complainant and Gifford. Gifford wished to purchase goods for Burlingame on a credit; and the complainant sold him goods on a credit of six and twelve months, to the amount of about $5,000, on Burlingame’s responsibility alone. The goods were packed and sent to Burlingame, according to Gifford’s request. A letter was afterwards received from Burlingame, which is annexed. This letter speaks of the receipt of the goods and' invoices, and says that he, Burlingame, would send the notes by the next mail; prefers that the complainant should not draw on him for fear of protests; complains of hard times; but says he has arrangements made for paying the first note; speaks of the complainant’s forwarding more goods per New Orleans. The witness says he has no recollection that any representations were made by Gifford of Burlingame’s responsibility. He found among the complainant’s papers, a power of attorney made by Burlingame authorizing Gifford to do any and all business for him at the east.

The deposition of Levi Bartlett states, that in January, [* 99] 1837, Burlingame bought goods of him in Boston, by his agent, Gifford, to about the sum of $583, on a credit of six months, which were charged to him, and forwarded to his address at Peoria. Gifford had a paper, purporting to be a power of attorney signed by Burlingame, authorizing him to purchase the goods. Gifford made no particular representations of Burlingame’s responsibility, but spoke of him in general terms, as a merchant of good standing. Gifford produced a letter of Dr. Bartlett of .Peoria, a brother of witness, which spoke of Burlingame as a merchant of good standing and credit.

The deposition of W. Gifford, Jr., states, that two days after he came to Peoria, which was on the 7th of August, 1836, he went into the store of Burlingame, and on the next day was so badly burned that he was unable to attend to business for nearly two months. After that he was in the store, but unable to attend to business, till he left for Boston, on the 29th of November, 1836; that he returned on the 1st of April, 1837, and continued in'the store, as clerk, till the 10th of June following. He purchased of the complainant for Burlingame, drugs, etc., to the amount of about $6,000.' These goods were shipped to and received by Burlingame at Peoria, about the first of April, 183T. They were purchased on a credit of six and twelve months, and Burlingame’s notes given for the payment. He told the complainant he thought Burlingame was worth about $10,000, after his debts were paid. This opinion was founded on the statements of Burlingame, and a schedule which he made of his property and liabilities, which he made out at the request of witness. He made it out that witness might exhibit it as presenting a true statement of his affairs. This schedule was annexed to Gifford’s deposition. It was shown to the complainant, at the time of the purchase, and as Burlingame was a stranger-in Boston, witness thinks the complainant would not have trusted him, but for the representations above stated. Soon after the goods were received,. witness learned that Burlingame was insolvent, and in June, 1837, the attachments were issued. The goods taken on the attachments were those purchased of the complainant. At the time the schedule was made out, he thinks Burlingame’s collectable debts did not exceed $300 or $400. At that time he thinks the goods in Burlingame’s store were not worth more than $400, they having been damaged by fire and water. At that time Burlingame was owing much more than was shown by the schedule. He owed $1,500 to the bank, not stated in it. One of the lots was mortgaged for $1,000, which fact was not shown in the schedule.

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Henshaw v. Bryant, 5 Scam. 96 (Ill. 1842).

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