Manning v. Gasharie

27 Ind. 399
CourtIndiana Supreme Court
DecidedNovember 15, 1866
StatusPublished
Cited by45 cases

This text of 27 Ind. 399 (Manning v. Gasharie) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Manning v. Gasharie, 27 Ind. 399 (Ind. 1866).

Opinion

Elliott, J.

Gaskarie and Davis, merchants- of the city of New York, sued the appellants and others, numbering, in all, one .hundred and seven persons, as partners, trading and [401]*401doing business under the firm name of the “Earmers’ Union Store,” at Elkhart, in Elkhart county, Indiana.

The complaint is in three paragraphs, the first of which alleges, in substance, that ' on the fifth day of October, 1860, the plaintiffs were partners, doing business as wholesale merchants in the city, county and State of New York, under the firm name and style of “Gasharie $ Ecuvis;” that at and previous to the date aforesaid, the defendants were president, vice-president, directors and members of a mercantile firm, copartnership, or association, which assumed and acted under the name and style of the “Earmers’ Union Store,” located in the town of Elkhart, in the county of Elkhart, and State of Indiana; that on said fifth day of October, 1860, as well as before and after that date, Solomon N. Chappell, a member thereof, was the duly appointed and authorized general managing agent of said copartnership or association, to purchase goods, wares'arid merchandise, in the city of New York and elsewhere, for the use and benefit of said association, and to execute and deliver to the persons or firms from whom such purchases should be made, notes and other proper evidences of such indebtedness, to be signed by him as such agent; that on said fifth day of October, 1860, the said Chappell, as such agent of said association, executed and delivered to the plaintiffs a promissory note, which reads as follows, viz:

“$1,197 58. New York, Oct. 5,1860.

“Six months after date, I, the subscriber,, pf Elkhart, county of Elkhart, and 'State of Indiana, promise to pay to the order of Gasharie § Davis, eleven hundred and ninety-seven dollars and fifty-three cents, with the current rate of exchange on New York, at the Bank of Elkhart, at Elchart, Indiana. Value received, without any relief whatever from appraisement and stay laws.

“S. N. Chappell, Agent.”

It is further averred, that said note was given for goods, wares and merchandise sold and delivered by the plaintiffs [402]*402to the defendants, so trading and doing business in the name of the “Farmers’ Union Store;” that it was intended to be, and was, delivered to and received by the plaintiffs as the note of said association, and as binding upon it, and the members thereof, and not as the individual note of said Chappell; that said Chappell, while acting as the agent of said firm, and in the transaction of the business thereof, was in the habit of executing notes in the same foi'm, which had always been recognized by said association as the notes of said firm, and as binding on the members thereof, and that said firm thereby adopted the signature, "S. N. Chappell, agent,” as the proper signature of said firm; that the goods for which the note was given were sold on the faith and credit of said partnership, and not on the credit of said Chappell; that they were received by said association, and used and sold by it, in the regular course of business; that the note remains due and^mpaid; that the current rate of exchange at Fíkhart on Neto York, when said note became •due and payable, was two per cent., &c.

The second paragraph is founded on a note, as follows:

“$366 51. New York, Nov. 10, 1860.

“Four months after date, value received, we promise to pay to the order of Gasharie § Davis, of New York, three 'hundred and sixty-six dollars and fifty-one cents, at the Bank of Klkhart, Indiana, with the current rate of exchange on New York, waiving the benefit of valuation or appraisement laws.

“ S. U. Chappell, Agent.”

The averments, in other respects, are substantially the •same as in the first paragraph.

The third pai’agraph is for two thousand dollars, for goods, wares and merchandise sold and delivered by the plaintiffs to the defendants, at their instance and request.

Four of the defendants, viz., Benjamin F. Kenyon, Milo Smith, Derrick B. McKeon and Henry Putenbaugh, who were [403]*403directors of the association, appeared to the action and joined in an answer of the general denial.

Anthony G. Manning and twenty-seven others of the defendants, who are denominated stockholders, also appeared and filed a joint answer of three paragraphs.

1. The general denial.

2. Denying that they, or either of them, executed either of the notes mentioned in the first and second paragraphs of the complaint.

3. Payment.

The second paragraph is sworn to by George W. Shepherd, one of the defendants.

The same defendants filed a “ further answer, by way of cross-complaint, in order to determine their ultimate rights, as between them and the defendants named as directors and agent,” in which they admit that, on and prior to the 10th day of November,-1860, they were members of the association known as the “Farmers’ Union Store,” of Flkhart, Indiana, but allege that said association was organized in 1858, and adopted, as the basis of its organisation and the conduct of its business, a constitution and by-laws, or- articles of association, (a copy of which is set out in the complaint;) that Benjamin F. Kenyon became president, F. W. Miller vice-president, and certain persons, who are named, became directors of the association, and so continued until after the 10th of November, 1860, and were acting as such at the time of the execution of the notes mentioned in the complaint; that about the time of the organization of said association, Solomon N. Chappell became its managing agent, as provided in said articles, and so continued until the 17th day of September, 1860, when he resigned said agency; that on the same day, the board of directors of said association, by resolution, authorized said Chappell, “ as agent in fact of the Farmers’ Union Store, to settle all claims against the same, due to Stone, Starr & Co., and other firms and merchants in. the city of New York and elsewhere, and to execute all [404]*404notes and evidences of debt, for and on behalf of said Farmers’ Union Store, as their agent, and that his acts should be binding on said association; ” that, acting under said resolution, said Chappell proceeded to New York, and, in the months of October and November, 1860, purchased of the plaintiffs the two several bills of goods mentioned in the complaint, and in consideration thereof executed and delivered to them the notes here in suit; that he assumed to make said purchases-upon the credit of said association, and to bind the members thereof by said notes, whereby, if at all, the said defendants became liable to pay the same; that the articles of association, including the eighth, were in full force at the time said goods were purchased and said notes executed; that said directors and said Chappell,

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27 Ind. 399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manning-v-gasharie-ind-1866.