Hood v. Paddock-Hawley Iron Co.

53 Ill. App. 229, 1893 Ill. App. LEXIS 284
CourtAppellate Court of Illinois
DecidedFebruary 15, 1894
StatusPublished

This text of 53 Ill. App. 229 (Hood v. Paddock-Hawley Iron Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hood v. Paddock-Hawley Iron Co., 53 Ill. App. 229, 1893 Ill. App. LEXIS 284 (Ill. Ct. App. 1894).

Opinion

Mr. Justice Pleasants

delivered the opinion of the Court.

This was an action of assumpsit commenced by appellee August 31, 1893. The declaration contained two counts. By the first it was averred that on January 5, 1893, the McCaslin Manufacturing Company, of Litchfield, Ill., made its order on plaintiff for certain goods, and the defendants, in consideration that plaintiff would sell and deliver them to said company, would guarantee the payment of their price, and promised plaintiff to pay it if said company should not; that confiding in said promise, plaintiff did sell, ship and deliver to said company the said goods, amounting to $231.45, which amount was due the plaintiff in ninety days from the date aforesaid, and that although the day of payment has elapsed, the said company did not nor would, on that day or at any other time, pay the same or any part thereof to the plaintiff, but refused so to do, whereof the defendants on the day last aforesaid had notice.

The second is like the first, except that it alleges the defendants, by their promise in writing, agreed to guarantee the payment, and that plaintiff sold the goods on January 11th, and the sum stated was due ninety days from that date.

With the declaration, filed as a copy of the instrument sued on, was the following:

“ Litchfield, Ill., Jan. 11, 1893.
Gentlemen: Tour draft payable February 26, 1893, presented to us this day for acceptance.
We agreed to indorse the McCaslin Co.’s paper due in 90 days; therefore decline acceptance "for shorter time. We are willing to guarantee your original bill and subsequent orders to date on terms of 90 days from this date.
If satisfactory, send draft with all bills to date included and it will be accepted by secretary and indorsed by us.
Very respectfully,
John H. Hood,
E. A. Rice.”

A jury was waived and the cause tried by the court upon the general issue, though the statute of frauds was also pleaded. Having found for the plaintiff and overruled motions for a new trial and in arrest, judgment was rendered against the defendants for §231.45, the amount claimed and costs.

The McCaslin Company, whose business seems to have been the manufacture of carts, was organized and incorporated in November, 1892, presumably with a small working capital. Appellant Rice was its president and Hood its secretary.

It became indebted to appellee for four bills of goods, shipped to its orders, respectively on November 15th and 22d, and December 23d and 28th, aggregating $132.48. A few days later it ordered another bill, which appellee returned declining to fill. Thereupon appellant Hood wrote to appellee the following, on January 4th:

“ (xEnTLBMBif: Find herewith order of McCaslin Company which please fill and forward at earliest convenience. Mr. E. A. Rice, of Rice-Howell Lumber Company, and John H. Hood, President of the Central Investment Company, will personally indorse acceptance for same, due in ninety days from shipment.”

On the 5th, appellee wrote to appellants acknowledging the receipt of the order and the foregoing letter of Hood, noting the promise therein, and adding: “ But you do not answer our letter in regard to goods shipped in November and December amounting to $132.48. We must ask you to advise us by return mail that you will also see this paid. We will hold the present order until we receive a reply;” which Mr. Hood returned the next day with the following under-written:

“ Jan. 6, 1893. You may include above in our 90 days acceptance.”

On the 7th, appellee wrote to appellants acknowledging the return of its former letter, quoting the “ notation ” thereunder written, and saying: “ The order received the other day will go forward as promptly as possible, and we this day make draft on the IfcCaslin llfg. Co., for $132.48, payable February 26th, which you will please have accepted by the treasurer of the company, and indorsed on the back by yourselves according to terms.” Then follows a statement of the dates and amounts of the November and December shipments as herein above given, concluding: “ Average due February 26th.”

The draft therein referred to is the one presented to appellants for their indorsement on January 11th and in their letter of that date, a copy of which was filed with the declaration as of the instrument sued on.

It was clearly not in accordance with any offer they had made. That of January 4th was to indorse an acceptance of the company due in ninety days from shipment of the accompanying order, which could not be earlier than the 4th of April; and that of the 6th (by the “ notation ”) was to have included in that offer the November and December shipments. It was not only drawn at an average of ninety days on earlier shipments, but preceded in date that of the shipment on the January order. There is nothing in the correspondence or elsewhere in the record to warrant the assumption that appellants contemplated the indorsement of two drafts maturing at different times—one at a time, so much less than ninety days from the date of the offer.

Replying to their letter of the 11th, declining to indorse the acceptance, appellee on the 12th wrote, in explanation, that the time was an average of ninety days, and saying: “ When we grant ninety days time, of course we are entitled to acceptance at ninety days from that date, or if several dates, ninety days from the average dates,” and hoping they would agree to indorse the paper.

If that is the proper construction, as between vendor and vendee, of a general agreement for a credit of ninety days, its practical operation would be materially varied, as the earlier and later sales should vary in amount. But here it overlooks the position appellants offered to take as sureties, and the express terms of the offer.

For reasons stated in their answer of the 13th, they still refused to indorse it, and closed as follows: “ If our acceptance for ninety days is not satisfactory, let us know at once that we may place our order elsewhere."

On the 14th, appellee replied: “We are just in receipt of your esteemed favor of the 13th inst., and contents noted. As requested, we this day make draft on you in accordance with your wishes, namely, ninety days from January 11th for §132.48. We enclose this draft direct to you so that you can have it accepted by an officer of the company, and then indorsed by yourselves, individually, and returned to us by prompt mail. * * * The order taken by our Mr. Gary on the 9th inst., will go forward to-day."

That draft was accepted, indorsed, and by appellant Bice, paid at maturity, which satisfied the claim for the November and December shipments.

But no draft at ninety days for the amount of any January or subsequent shipment was ever presented to appellants for their indorsement. Nor did appellee intend to receive acceptances, with or without indorsement for such shipments.

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53 Ill. App. 229, 1893 Ill. App. LEXIS 284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hood-v-paddock-hawley-iron-co-illappct-1894.