Hood v. Hallenbeck

14 N.Y. Sup. Ct. 362
CourtNew York Supreme Court
DecidedMay 15, 1876
StatusPublished

This text of 14 N.Y. Sup. Ct. 362 (Hood v. Hallenbeck) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hood v. Hallenbeck, 14 N.Y. Sup. Ct. 362 (N.Y. Super. Ct. 1876).

Opinion

Bockes, J.:

The right of action against Bachman, Hallenbeck and Hull, as indorsers, seems to be well established in this case. The note was set out in the complaint with the indorsements in full; and all [364]*364necessary averments were made to charge those persons as indorsers. They denied their liability. On the trial, the genuineness of their signatures was admitted under an express waiver of protest. They indorsed “ with waiver of protest! Such waiver relieved the holder from making demand and giving notice of non-payment. (1 N. Y., 186 ; 9 id., 279, 291; 12 id., 551, 554; 40 id. [3 Keyes], 278; 3 Robt., 275, 282; 2 Abb., 402; 6 Duer, 544, 545, 548; 53 Barb., 467, 470.) As against the indorsers, the judgment seems well supported by the pleadings and proofs.

The recovery against the other defendants, as makers of the note, is not without difficulty. Notes similar to this in form have been before the courts in numerous instances, on the question as to the personal liability of those whose names were subscribed as makers; and the decisions on the question do not seem to be entirely harmonious. But the recent decisions leave little doubt as to the true rule to be applied to this class of cases. It was held in Taft v. Brewster (9 Johns., 334) that a bond, signed by the defendants, u trustees of the Baptist society of the town of Litchfield,” sealed by them respectively, was their personal obligation — that the addition of “ trustees ” to their individual names was a mere descripUo personarum. The question there arose on demurrer. It was remarked by the court that the church had not contracted by its corporate name or seal, and it seems that the demurrer was deemed well taken on another ground. The questions in White v. Skinner (13 Johns., 307) also arose on demurrer. Judgment was given for the plaintiff, on the pleading, on the ground that it did not appear that the defendant, Skinner, who signed his own name, “ for the directors,” and sealed the instrument with his own seal, had authority to bind those for whom he assumed to act. The case of Barker v. The Mechanic Fire Ins. Co. (3 Wend., 94) is more in point. Stress was here laid on the fact that (as it appears from the pleading) the party who signed the note did not contract in the name of the company, nor in their behalf, and Stone v. Wood (7 Cow., 453) is cited in support of the decision. (See Moss v. Livingston, 4 N. Y., 208; also, De Witt v. Walton, 9 id., 571.) Taft v. Brewster (supra) is commented on in Hicks v. Hinde (9 Barb., 528), and Hills v. Bannister (8 Cow., 32) is there referred to as overruled. Now, in the case at [365]*365bar, the promise in the body of the note is personal: “ We promise to pay f and, if the rule stated in most of the cases above cited be rigorously adhered to, the personal liability of the makers would seem to be established. But there are many other cases, some of more recent date, to be considered. And in some of them, also, it would be observed that a personal promise, as “ We promise,” “I promise,” “ We agree,” etc., was not deemed of absolutely controlling significance. The case of Brockway v. Allen (17 Wend., 40) is in point, as an authority to discharge the makers of the note from personal liability. It was there held that, where individuals subscribe their proper names to a promissory note, prima facie they are personally liable, although they add a description of the character in which the note is given, but that such presumption of liability may be rebutted, by proof that the note was in fact given by the makers as the agents of a corporation, for the debt of the corporation, due to the payee, and that they were duly authorized to make such note as the agents of the corporation ; and that such facts may be pleaded in bar of an action against the makers personally, averring knowledge on the part of the payee. This decision has been recognized and followed in numerous more recent cases. (9 Barb., 528; 11 N. Y., 200; 19 id., 619, 630, 631; 27 id., 546, 558, 559; 9 Paige, 188; 22 Wend., 324; 38 Barb., 313; 52 id., 116.) These cases are not all direct authorities on the point under discussion, but bear more or less on the question. The note in suit, prima facie, created a personal obligation against the makers; but, being signed with descriptive words attached to their names, and bearing, also, the corporate seal, the case was open to proof of the facts under which it was given, with a view to determine whether it was intended by the parties that they should assume personal liability. In Lee v. Methodist Episcopal Church (52 Barb., 121) the learned judge, in delivering the opinion of the court, says: “ There are a number of cases in which prima facie, and without extraneous circumstances to show it to be otherwise, an obligation in such form, without other explanation is held to be an individual obligation, and the addition to be mere matter of description, but such, prima facie evidence is not conclusive ; nor does that circumstance or presumption exclude evidence to overcome it.” So Judge Paige, in Hicks v. Hinde (9 Barb., 528-531), in speaking of instru[366]*366ments signed by individuals with words of description of some character attaching to them, remarks as follows : “ There are some cases of ambiguities, where the words are equivocal, but which admit of precise and definite application, by resorting to the circumstances under which the instrument was made. In such cases parol evidence is admissible, of the circumstances attending the transaction.” In this case the drawer of the draft added to his signature “ agent.” He was allowed to give proof of the character mentioned by the learned judge, which was held to discharge him from personal liability. In Haight v. Sahler (30 Barb., 218), the defendants signed the contract, adding to their name “ building committee.” On proof of the circumstances attending the giving of the contract, they were held not personably liable. So in Bowne v. Douglass (38 Barb., 312), a note was made payable to the defendant “assignee,” and was indorsed by him adding “ assignee.” On proof of facts attending the giving of the note and its indorsement he was held not personably liable. In Pumpelly v. Phelps (40 N. Y., 59) it is remarked, that the fact that the party described himself as trustee, without stating for whom, does not relieve him from personal liability, or change the effect of his engagement. But in that case the party gave no information for whom he was trustee, to the person with whom he contracted, nor did he show any authority to contract as trustee. There was no intention here to overrule the cases above cited. This subject received careful consideration in Angelí and Ames on Corporations, and the rule was laid down, that, in cases like this now before the court, if from the contract itself, or from this coupled with the conduct of the parties thereto, it appeared that credit was given, not to the agent, but to the corporation, and that it was the intent of the parties that the corporation should be bound, whatever might be the particular form of the contract, the corporation was alone liable upon it.

Now, in the case at bar there was added to the names of the makers of the note a description of their character: “ Trustees of St. John’s Ev. Lutheran Church, Hudson N. Y.,” and the note was stamped with the corporate seal of the corporation.

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Related

Pumpelly v. . Phelps
40 N.Y. 59 (New York Court of Appeals, 1869)
Moss v. . Livingston
4 N.Y. 208 (New York Court of Appeals, 1850)
Coddington v. . Davis
1 N.Y. 186 (New York Court of Appeals, 1848)
Hicks v. Hinde
9 Barb. 528 (New York Supreme Court, 1850)
Haight v. Sahler
30 Barb. 218 (New York Supreme Court, 1859)
Bowne v. Douglass
38 Barb. 312 (New York Supreme Court, 1862)
Lee v. Methodist Episcopal Church
52 Barb. 116 (New York Supreme Court, 1866)
Porter v. Kemball
53 Barb. 467 (New York Supreme Court, 1868)
Stone v. Wood
7 Cow. 453 (New York Supreme Court, 1827)
Taft v. Brewster
9 Johns. 334 (New York Supreme Court, 1812)
White v. Skinner
13 Johns. 307 (New York Supreme Court, 1816)
Barker v. Mechanic Fire Insurance
3 Wend. 94 (New York Supreme Court, 1829)
Brockway v. Allen
17 Wend. 40 (New York Supreme Court, 1837)
Many v. Beekman Iron Co.
9 Paige Ch. 188 (New York Court of Chancery, 1841)
Evans v. Wells & Spring
22 Wend. 324 (Court for the Trial of Impeachments and Correction of Errors, 1839)
Hills v. Bannister
8 Cow. 32 (Court for the Trial of Impeachments and Correction of Errors, 1827)
Price v. McClave
6 Duer 544 (The Superior Court of New York City, 1857)

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Bluebook (online)
14 N.Y. Sup. Ct. 362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hood-v-hallenbeck-nysupct-1876.