Michigan Savings Bank v. Estate of Butler

57 N.W. 253, 98 Mich. 381, 1894 Mich. LEXIS 1179
CourtMichigan Supreme Court
DecidedJanuary 9, 1894
StatusPublished
Cited by7 cases

This text of 57 N.W. 253 (Michigan Savings Bank v. Estate of Butler) 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
Michigan Savings Bank v. Estate of Butler, 57 N.W. 253, 98 Mich. 381, 1894 Mich. LEXIS 1179 (Mich. 1894).

Opinion

Montgomery, J.

The bank presented a claim against the estate, based upon a note made by E. K. Roberts, payable to Barnes Bros, or bearer, and by them indorsed in blank. This note was dated October 14, 1889, but, as the testimony shows, was given in renewal of one dated June 11 of the same year. The grounds upon which it is sought to charge the estate of Butler are that Butler was a partner of Roberts in conducting a certain fish business, and that the money was in fact borrowed for the copartnership, and went into the business. The relations existing between Butler, Roberts, and one Gauthier were somewhat considered in Purvis v. Butler, 87 Mich. 248, and it was [384]*384there held that under the circumstances appearing in that case, and in this as well, Butler was a partner, and that as to any contracts actually made on behalf of that business, and particularly for any money actually borrowed for and put into the business, Butler was liable. Among other provisions of the contract was the following:

“Said Ephraim K. Roberts shall have the general management of the said fishery business for the benefit of all concerned in the property, and, to carry out the purposes of this agreement, said Roberts shall have authority to make all contracts of importance connected with said business, either in the name of said Gauthier or in his own name, as he shall deem best. He shall have entire and sole control of the finances of said business, including the sale and disposition of all products of said business, and the handling of all money that goes into or is made from said business, except as is hereinafter stated.”

1. The circuit judge directed a verdict for the claimant-for the amount of the note and interest. This action on his part raises the question as to whether it was conclusively shown that the money advanced by the claimant-actually went into the business, or whether the testimony adduced was subject to a construction which negatives the claim. The cashier of the bank admitted that he knew nothing of the fact that the note was given for the copartnership business at the time the note was taken, but that, on information obtained later, he filed the present claim.

The claimant called as witnesses E. K. Roberts, the maker, and one Reeves, who kept the books relating to the fishery business. On cross-examination by counsel for the estate, Roberts testified as follows:

“Mr. Butler didn’t know of the execution of this note at the time it was executed, — that is, I don’t think he did. Mr. Butler was aware, later, of the fact that I procured Barnes Brothers’ indorsement in the fishery business. At the time this note was executed, — either of these notes, the [385]*385original or the renewal, — he was not aware of it, although he had solicited me to get some outside indorsement. He was not aware of the fact that I had procured Barnes Brothers, at this time, to indorse this note. I got.the money myself, — this $2,000. I put it in the fish business.
“ Q. I want to know what you did immediately at the time you got it. Did you deposit it in the bank?
“A. I don’t know as I can tell exactly. As I understand, the books of the concern are here, and they can .show.
“ Q. I want to know what you did when the paying teller handed you the money. What then did you do with the money? I don’t want to know what occurred a week or a day afterwards.
“A. I can’t tell you. I know I borrowed it for the fish business.
“ Q. I am not asking you that now. I want to know what you did with it at this time. Did yon put it in your pocket, take it to the office, or put it in the bank, or what?
“A. I don’t know.
“ Q. Don’t you recollect testifying before the commissioners on claims, in the claim presented by A. F. Wilcox, that you put that money in your pocket, and you were in the habit of carrying money in your pocket and about your person?
“A. I did that sometimes, and I might have done it in this case.
“Q. I ask you if you do not recollect that you testified before the commissioners on claims.
“A. I don’t recollect in particular, although I think in this particular case I kept the money myself, and turned in other cash items which represented the $2,000, although I am not positive. The books will show exactly what was done with it.
“Q. Will the books show whether you took this money, or some other money, and put it into the business?
“A. I think they will.
“Q. Was it not your habit, when you borrowed money, after you took charge of the fish business, to put that money into your own pocket, or into your own bank account, and then expend from your own pocket, or your own bank account, money for the fish business?
“A. I had some means of my own in_ the bank, and this fish business, occasionally we would get hard up,— that is, the fish business would, — and claims would come [386]*386■in that would need immediate payment. I would draw a : check for the payment of these claims.
“Q. On your personal account?
“A. On my personal account, or usually take the currency from my own pocket, — my own money, — and keep the'check myself until the bank account should be good for it, when I would draw -it.
“Q. You would loan money to the fish business, — you ■would advance money to the fish business?
“A. I would advance money to the fish business individually until money would come in.
“Q. Until such time as the fish business could pay it back to you?
“A. Until the bank account was good for it. I held checks — the fish business checks — against the bank.”1

Mr. Beeves testified that the avails of the note went into the business, and very clearly accounts for every dollar ■of it, using the books to refresh his recollection. It appears that checks to the amount of $1,986.22 had been issued, and Boberts advanced the money on them, retaining the checks in his hands for a few days, and, when they amounted to this sum, discounted the note of which the one in suit is a renewal, and, instead of going through the form of depositing the money in the hank" and presenting the checks, turned in the checks in place of the money, and took credit for the difference between the amount of the checks and discount (some $40) and the amount of the note. Defendant’s counsel quote the testimony of Beeves, as follows:

“I kept full track of the bank account; o but, mind you, I neither deposited all the money got there, nor attended to all the discounts, but I kept track of the bank account. Here it is in my own handwriting.
Q. Now, you say you never saw the money. Was it ever brought to that fish office?
“A. Never brought there.

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Cite This Page — Counsel Stack

Bluebook (online)
57 N.W. 253, 98 Mich. 381, 1894 Mich. LEXIS 1179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michigan-savings-bank-v-estate-of-butler-mich-1894.