Jackson City Bank & Trust Co. v. Sternburg

274 N.W. 806, 281 Mich. 313, 112 A.L.R. 1195, 1937 Mich. LEXIS 881
CourtMichigan Supreme Court
DecidedSeptember 1, 1937
DocketDocket No. 87, Calendar No. 39,583.
StatusPublished
Cited by6 cases

This text of 274 N.W. 806 (Jackson City Bank & Trust Co. v. Sternburg) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackson City Bank & Trust Co. v. Sternburg, 274 N.W. 806, 281 Mich. 313, 112 A.L.R. 1195, 1937 Mich. LEXIS 881 (Mich. 1937).

Opinion

North, J.

Plaintiff herein is the administrator de bonis non of the estate of William Adams, deceased. Unless otherwise indicated we will herein refer to William Adams as plaintiff or appellee. In May, 1927, plaintiff, the owner of hotel property in the city of Jackson, entered into a 99-year lease of this property with defendant Charles P. Sternburg. Defendant Northquist signed an instrument attached to the lease by the terms of which he promised and *316 agreed to pay accrued rentals in case of default of the lessee, such liability on the part of Northquist being limited to $10,000. The lessee defaulted in making’ payments of accruing instalments of rent. This suit in assumpsit was brought against him and the defendant Northquist for the collection of such accrued rentals to the extent of their respective liabilities. After hearing the case without a jury, the circuit judge entered judgment against Sternburg in the amount of $14,197.82 and against Northquist for $10,000. The latter has appealed.

Appellant denies his liability on the ground that the instrument guaranteeing payments of the rent was signed by him on Sunday, May 1, 1927. His denial under oath of liability on this instrument contains the following:

‘ ‘ That the original of said alleged guaranty agreement was not signed or executed by deponent on the 5th day of May, 1927, as indicated therein, but was, as a matter of fact, signed and executed by deponent on a certain Sunday, to-wit: May 1, 1927. ’ ’

At the close of plaintiff’s proofs appellant’s counsel moved for an entry of judgment of no cause of action on the ground that there was no proof of the execution of the guaranty instrument. On the other hand appellee took the position that the above quoted sworn statement of appellant was an admission that the signature on the instrument was that of appellant. The trial judge so held, and such holding- was correct so far as genuineness of signature was concerned. The only fair and reasonable construction to be placed upon or meaning* to be obtained from appellant’s sworn statement is that while he actually signed the instrument he did so on Sunday. Further it repeatedly ajapears from Northquist’s answer to *317 the declaration that he signed the guaranty agreement. "We quote one of such admissions:

“Further answering said paragraph X, this defendant affirmatively alleges the facts to be, that on a certain Sunday, to-wit: May 1, 1927, he * * * affixed his signature to certain papers and documents which were then otherwise unsigned, undated and unacknowledged; that the papers to which he then and there on said Sunday so affixed his signature were the original and duplicate copies of the alleged guaranty agreement. ’ ’

Thus the genuineness of his signature is admitted by him, and plaintiff was not required to malee proof of that fact. The instrument was dated on a secular day; and when produced by plaintiff was presumed to have been executed on that date. Maybury v. Berkery, 102 Mich. 126; McQuillan v. Eckerson, 178 Mich. 281. Plaintiff established a prima facie case, and the trial judge was right in denying- appellant’s motion for judgment at the close of plaintiff’s proofs.

The important issue for determination is whether the guaranty instrument was both signed and delivered on Sunday and is therefore invalid. The circuit judge in final determination of this case held that because the instrument was dated on a secular day, May 5, 1927, the presumption was that it was delivered on that date, and there being no proof to rebut such presumption, he decided as a matter of fact the instrument was delivered on ■ Thursday, May 5, 1927, and not on the day it was signed, Sunday, May 1, 1927. Appellant contends-the circuit judge was in error in so holding; and that instead it should have been held, under this record, that the instrument on which appellant was found liable was shown to have been signed and delivered on Sunday *318 and, therefore, it was void under the statute. 2 Comp. Laws 1929, § 9078.

The circumstances surrounding the execution'of this guaranty agreement are somewhat unusual. In part it provided as follows:

“And if any default shall at any time be made therein, I do hereby promise and agree to pay to the lessors named in said instrument, the said rent and arrears thereof that may be due, and fully satisfy the condition of said instrument, all damages that may occur by reason of the nonfulfillment thereof, without requiring notice or proof of the demand being made. ’ ’

The guaranty undertaking was added at the end of the lease, being written on the last page thereof. The testimony shows that before any other signatures were attached to the lease, appellant called upon the lessor on Sunday, May 1, 1927, signed the agreement in duplicate, and returned the papers to hands of appellee. The duplicate leases to which the guaranty was attached were not signed by plaintiff as lessor or by the lessee until the following Thursday. It was then signed in duplicate and delivery made to the respective parties but appellant was not present. Since the instrument was not signed by the other parties thereto at the time appellant affixed his signature, it is almost a necessary inference that so far as appellant was concerned it was understood delivery was to be made at the time the lease was finally executed and delivered as between the principal parties thereto. Prior to the execution by the principal parties there was nothing for which appellant could become obligated. In a legal sense delivery such as to make the instrument binding upon him was not made and could not have been made *319 until tlie lease was executed and delivered by the principal parties thereto.

“A mere manual or physical delivery of a written contract is not necessarily a delivery as contemplated in law. To make the delivery one contemplated in law, it must be accompanied by an intention to make it an enforceable obligation.” Bray v. Comer Mercantile Co., 32 Ga. App. 746 (124 S. E. 817).

“Delivery of an uncompleted instrument is ineffective. * * * As was pertinently stated by the court in Fitzkee v. Hoeflin, 187 Ill. App. 514: ‘It is necessary that the instrument should be understood by the parties to be complete and ready for delivery, in order to have a mere placing it in the hands of the grantee construed into a delivery.’ The term ‘delivery’ has been held to mean, in legal phraseology, ‘the final absolute transfer to the grantee of a complete legal instrument sealed by the grantor, covenantor or obligor.’ Black v. Shreve, 13 N. J. Eq. 455.” Nelson v. Davenport, 86 Mont. 1 (281 Pac. 537).

“Also, that a bond is not ‘executed’ until delivery; therefore, although signed and sealed on Sunday, yet, if not delivered until a succeeding secular day, it is valid.” State v. Young (syllabus), 23 Minn. 551.

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Bluebook (online)
274 N.W. 806, 281 Mich. 313, 112 A.L.R. 1195, 1937 Mich. LEXIS 881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-city-bank-trust-co-v-sternburg-mich-1937.