Hotchkiss v. C. I. Ladd & Co.

43 Vt. 345
Supreme Court of Vermont·Decided January 15, 1871·Published

Opinion

Argued at January term, 1870. Held for advisement. Decision announced, January term, 1871, in the following opinion by

Barrutt, J.

When this case was decided, 36 Vt., 593, upon the questions then presented, the court held, with some hesitation, and not with full satisfaction to any members of it, that the declaration in the added count might bear an interpretation to the effect that, in consideration of the delivery of the goods by the plaintiff to the defendants, they jointly verbally promised to pay the price of them as specified in the notes given by Warner,—not that they became jointly obligated by the notes, or that Ladd became in any way bound by the notes as contracts to which he was a party. Upon the interpretation thus held to be allowable, Ladd’s liability accrued subsequently to the contract of sale negotiated by Warner, and to the giving of the notes by Warner, and [352] accrued solely by his verbal promise alleged to have been made in consideration of the delivery of the goods to the defendants. It seems necessary thus to recur to that decision in order correctly to apprehend and appreciate some of the questions now presented for decision.

The trial in the county court proceeded on the assumption that, for the goods negotiated for by Warner in October, 1845, the recovery must be had, if at all, under the new count. The third request of the defendant Ladd was, “ that no verbal promise of Ladd, either to Hotchkiss or Warner, after the goods were bought by Warner, would make Ladd liable on the notes, or for the goods for • which they were given.” Under the former decision it is plain that, as to Ladd’s being liable on the notes, the request was well founded ; and that, as to his being liable for the goods, the case should have been put to the jury upon the theory of the interpretation given to the declaration by that decision. In the exceptions it is said that the court charged in accordance with the first six requests of the defendant, except so far as the charge thereafter detailed conflicts with those requests. When we look forward into the charge as detailed, it would seem that the learned judge had not in mind the interpretation given to the amended count by the supreme court. He said, “ if the jury should find that the defendants were partners when the goods were purchased and the notes given, and that, by agreement between the defendants, Warner was to purchase the goods upon the credit of both defendants, and give his notes, and both defendants were to be liable to pay the notes, and this was made known to the plaintiff by Warner at the time of the purchase, and the plaintiff sold the goods upon the credit of both defendants, and relying on the liability of both defendants upon the notes, then defendant Ladd is liable upon the notes.” This would seem to be tantamount to adopting the construction and meaning of that count claimed by the defendants on the former trial;—in relation to which the court, by Poland, Ch. J., said, “ If this be the meaning, it is a clear case of a collateral promise within the statute of frauds, and doubtful as to consideration, even if the promise were in writing.” Upon a slightly different hypothesis of facts the judge proceeds [353] to put an alternative proposition to the jury, saying, “ if Ladd was to be jointly liable upon the notes with Warner, and this was made known to the plaintiff at the time of the sale, and he sold and delivered the goods upon the credit of both defendants, and received the notes relying on the liability of both defendants to pay them, then the defendant Ladd is liable upon the notes.”

In both those forms of putting the case to the jury, the notes are treated as having been received in payment for the goods, and this suit as having been brought to enforce them. This is in conflict with the view in which alone the supreme court decided, supra, that the defendant Ladd can be held liable under the amended count. In that view the notes of Warner were taken by the plaintiff as security merely, and not as payment. They were given in consideration of the sale and purchase negotiated by Warner—Ladd not becoming liable thereby, but solely, if at all, by reason of his subsequent verbal promise, upon the consideration that the plaintiff would deliver the goods in pursuance of such bargain made with Warner. This mode of putting the case to the jury palpably conflicts with said third request, and is in itself erroneous. For this reason the judgment is to be reversed.

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Hotchkiss v. C. I. Ladd & Co., 43 Vt. 345 (Vt. 1871).

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Related

Hotchkiss v. C. J. Ladd & Co.
36 Vt. 593 (Supreme Court of Vermont, 1864)