Howland v. Ayres

1 How. App. Cas. 283
CourtNew York Court of Appeals
DecidedNovember 15, 1847
StatusPublished

This text of 1 How. App. Cas. 283 (Howland v. Ayres) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howland v. Ayres, 1 How. App. Cas. 283 (N.Y. 1847).

Opinion

The Chancellor.

This is an appeal by C. Green from an order of the assistant vice chancellor of the first circuit, upon exceptions to a master’s report, as to the right to surplus moneys arising from a sale of the mortgaged premises, under a decree. And the only question necessary to be considered is, whether the power of attorney from the appellant to his brother, W. C. Green, was sufficient to authorize the latter to assign the judgment in question. The power is not one to do a specific act, and concluding with general words, which general words are usually restricted to the specific object of the power. But it is a general power in the most extended sense of the term. It commences by making the brother the true and lawful attorney for the appellant, “ for me, and in my name, place, and stead, and to my use, to do, transact, and perform every act, matter, deed, or thing whatsoever, which I myself might or could lawfully do if personally present; and, also, to make, execute, sign, seal, deliver, draw, subscribe, endorse, accept, and negotiate, all bills, bonds, drafts, checks, notes, acceptances, transfers, assignments, compositions, releases, and other instruments whatsoever, which he may deem useful, necessary, or advantageous; and to collect and receive all moneys due, or which may become due to me, with power of substitution and revocation.” And it concludes with the general grant to such attorney, of full power and authority in the premises. Under this general power there can be no doubt that the attorney had as much authority to execute an assignment of the judgment, upon receiving the whole or a part thereof, or to make an accord and receive a part of the judgment in satisfaction of the whole, as he had to draw or endorse a note, or to do any other act for the constituent.

R. Manning, Attorney & Counsel for appellant, Chas. Green.

First.—power.

1. A person dealing with an agent, or attorney in fact, is bound to know whether he is such; and the nature and extent of the authority given by the principal or constituent; and to that end he should require the attorney to produce the power for his inspection. (3 Hill, 262,279 ; 5 Ves. 213.) In the latter, the lord chancellor says, <CI take it not merely to be a principle of the law of England, but by the Civil Law, that if a person is acting ex mandato, those dealing with him must look to his mandate.”

2. There is no substantial difference between a special power of attorney to do a particular act, and a general power [298]*298to do all acts in a particular business. And on this principle, a general power, in terms, has been cut down to a particular purpose, according to the intent of the party giving the power. (The North River Bank v. Aymar and others, 3 Hill’s Rep. 262; Story on Agency, 70; Atwood v. Mannings, 7 Barn. & Cress. 278; 1 M. & R. 78; 8 Wend. 494; 1 Taunt. 347; 2 Cow. Rep. 200, 233.)

[297]*297Nor does it lie in the mouth of the constituent, or of his attorney, to say, this assignment was not made by virtue of this power, for the assignment purports to be made .under the hand and seal, of Charles Green, the party of the first part therein, and is subscribed by the attorney thus: “ Charles Green, by his attorney, Walter C. Green.” [l. s.J By the manner of executing the instrument, therefore, W. C. Green held himself out to Forbes as being the attorney of his brother. And it is wholly incredible, that he did not at that time believe he had a power which authorized him to execute the assignment as the attorney of his brother, and that he intended to commit a fraud upon Forbes, by acting in a character which he did not possess.

Again, it is immaterial whether this instrument was good as an assignment to be filled up in the name of such person as Forbes should think proper to insert therein, or not. For if that instrument is invalid as an assignment, for any reason, the agreement between W. C. Green and Forbes, and the payment of the $50, and the giving of the note, would operate as an accord and satisfaction, which the attorney had a right to make and receive, under the power. The whole interest of the appellant in the judgment was, therefore, extinguished, in one way or the other.

The order appealed from must be affirmed, with costs, and the proceedings are remitted to the vice chancellor of the first circuit. ■

[298]*298The object of the power of attorney in question in this case, was to authorize Walter C. Green to do all acts for Charles Green in a particular business, viz.: his banking business at the Branch Bank of U. S., in the city of New-York, in which said Cnarles Green had deposited said power for that'purpose only. A like power of attorney was also deposited by him in the custom-house, and in several other banks of the city of New-York. {See p. 11, fol. 4; p. 12, fols. 10, 11; p. 18,' fol. 31; p. 23,fols. 46, 47.)

A power of attorney, like any other deed, can take effect only by, and according to its delivery, and is limited and restricted accordingly.

In view of these general principles, and of the facts and circumstances of the. case, it is contended, that the assignment of the judgment in question is void as to Charles Green, because Walter C. Green was not authorized to make it, and because it was a fraud on Charles Green.

3. It appears that on the 14th day of July, 1832, Charles Green recovered this judgment in the superior court of the city of New-York against Hezekiah Kelly and Horace D. Forbes, for the sum of $386.01 damages and costs. And, that, on the 1st of March, 1836, the master to whom it was referred, report ed to the court, that there was then due on this judgment the sum of $484.03, and that it was a lien to that amount on the surplus moneys paid into court iii this cause, and that the claimant Charles Green was the owner of the judgment and entitled to the money.

4. It appears, also, that one Henry W. Brentnall claimed title to this judgment by an assignment of it to him for $50, by Walter C. Green, as attorney for Charles Green, made on the 24th day of April, 1835, of which Charles Green was igno[299]*299rant until it was produced before the master. And he denies that Walter C. Green had any authority for making it.

5. It was conceded on the other side, that this assignment does not bind Charles Green, unless Walter C. Green was invested with adequate power to make it. And. for that power they referred to a power of attorney on file in the office of the Bank of the United States, in the city of New-York, deposited there by Charles Green himself, on the 12th day of January, 1830, and there remaining on file on the 23d of January, 1836, which accidentally came to their knowledge in the course of their examination of their witness, Walter C. Green, whom they produced to prove that he was authorized to make the assignment. (P. 18, fol. 31, and p. 26; p. 23, fol. 46.) ’

6. But Walter C. Green expressly testified, that he did not act under that power, or any other written power,"when he compromised this judgment with Forbes, and signed-the instrument prepared by Forbes for transferring it to Brentnall, as Forbes’s trustee. And that he never acted under said power except for banking purposes.

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Bluebook (online)
1 How. App. Cas. 283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howland-v-ayres-ny-1847.