Milbank v. Dennistoun

10 Bosw. 382
CourtThe Superior Court of New York City
DecidedMarch 28, 1863
StatusPublished

This text of 10 Bosw. 382 (Milbank v. Dennistoun) is published on Counsel Stack Legal Research, covering The Superior Court of New York City primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milbank v. Dennistoun, 10 Bosw. 382 (N.Y. Super. Ct. 1863).

Opinion

By the Court—Monell, J.

The only question in this case not disposed of by the Court of Appeals, (21 K. Y. B., 386,) is whether the sale of the flour was made by the defendants in good faith, after the exercise of that prudence and skill which agents to whom the property of others is intrusted are always obliged to employ. Whether the defendants violated the written instructions of the plaintiffs is res adjudicata.

Upon the facts presented to the Court of Appeals, that Court held, that the evidence did not establish bad faith or want of skill or prudence on the part of the defendants ; on the contrary, “ that there was not the slightest reason on the evidence to impute blame to the defendants, and that there was nothing for the Jury to deliberate upon.”

Unless upon the last trial, the plaintiffs have varied the facts, and shown by additional evidence that blame was imputable to the defendants, the Justice committed no error in dismissing the complaint.

The new and additional facts relied on by the plaintiffs, as furnishing evidence of bad faith or want of prudence on the part of the defendants, are: that the flour when shipped at Kew Orleans was sweet and in good condition; that from ten to twenty barrels of it were examined about the 1st of September, by one of the plaintiffs, in Liverpool, and found to be sound, sweet and in good condition; that a newspaper, called “ Wilmer & Smith’s European Times,” published in London, was taken by the defendants’ firm, and that an article appeared therein, under date of July 25, 1846, which spoke of the appearance of the potato disease in Ireland, and of rumors of its appearance in England and on the continent.

Mr. Wood, one of the defendants, testified in respect to the newspaper, that it was not considered authority, and was not read by him. There was no evidence that it was ever seen or read by any other member of the firm.

If it was material, as bearing upon the question of good or bad faith on the part of the defendants, whether the flour was sweet or sour, or heated, or was “ a damaged [392]*392article,” there*was probably sufficient conflict of evidence on that subject to have made it proper to have submitted it to the Jury. But in the view taken by the Court of Appeals, and the view which I take of the effect to be given to the new evidence furnished by the plaintiffs, it does not become a material inquiry whether the. flour, on its arrival at Liverpool, or at the time of the sale, was or was not damaged. The object of the evidence of the condition of the flour, was doubtless to avoid or overcome the remark of the learned Judge who delivered the opinion of the Court of Appeals, that “ the plaintiffs’ flour was a damaged article, and liable to further depreciation if kept on hand,” and the plaintiffs’ counsel insisted that in so far, the case was now varied, and that the question, whether the flour was or was not a damaged article, should have been submitted to the Jury.

But it must be observed that the remark quoted was one, only, of several reasons furnished by the learned Judge, in support of his view that there was no evidence to impute blame to the defendants. He says it was proved that all the large holders of flour were freely selling at the price that then prevailed; that the defendants themselves, sold on the 6th of August, three thousand barrels of their own flour, for a less price than that which they obtained for the plaintiffs; that all the indications were in favor of an abundant domestic harvest; that no immediate improvement in prices was looked for among the dealers in bread-stuffs in that market; that the prices obtained were the market prices prevailing at the time of the sales, and for sometime afterwards, and that the subsequent extraordinary rise was owing to causes wholly exceptional in their character, which were not so far developed when the sales took place as at all to influence the market, and could not have been anticipated with any degree of sagacity.

If it was necessary to take all these reasons in the concrete, and to hold that if any one of them was unsustained by the evidence they all must fail, there would be some [393]*393pertinence and materiality in the testimony directed to that subject. But I apprehend that the fabric will stand, although one of its supports is taken away.

Assuming that it was proved that the flour was not a damaged article, then that reason of the learned Judge would be gone, but all the others would remain unaffected by any of the new evidence in the case. There was no violation of the written instructions to the defendants, and the burden of proving that the sales were not made in good faith, was upon the plaintiffs. The obligation of the defendants to exercise skill and prudence was the same, whatever was the condition of the flour; and although, if damaged and depreciating in value, the sale might thereby have been hastened, yet proof that the flour was not damaged would not outweigh and overcome all the other and most satisfactory reasons for making the sales at the time they were made. If the plaintiffs were bound to hold the flour, if sound and sweet, then it might be material to inquire how that fact was. But no such obligation rested upon the defendants. They had a right to sell, whether damaged or otherwise, and so long as they can furnish satisfactory reasons for selling, it is quite immaterial what was the condition of the flour at the time.

There was no evidence that “ Wilmer & Smith’s European Times ” was ever read hy any of the defendants. The only one of them examined testified that he never read it, and that, it was not considered authority as to the state of the market. If the article from this newspaper, given in evidence, was calculated to have put the defendants upon inquiry, had they seen it, of to induce the belief that the market was likely to undergo a change, and prices advance, the plaintiffs, nevertheless, cannot have the benefit of such an effect, as indicating a want of good faith by the defendants, without showing that the article, for which such an effect is claimed, came under their observation. The mere circumstance that they were subscribers for and took the papers, is not sufficient to [394]*394sustain a charge of bad faith. Besides, there was nothing in the article- either to excite the alarm or to change the purpose of any prudent man. It was a communication written at Liverpool for-the paper, and was published at London, on the 4th of August, the day the first sales were made by the defendants. It communicated the fact of the appearance of the potato disease in Ireland, and rumors of its appearance also in England and on the Continent; but in another column of the same paper, the editor speaks satisfactorily of the new wheat crop, and says “ in the meantime large quantities of wheat and flour continue to arrive from the United States and Canada which keep down prices, and render the trade inactive.”

Upon the whole, I have been unable to discover any material variation of the facts proved on the last trial from those which were before the Court of Appeals, and hence there was no error in dismissing the complaint.

Hone'of the exceptions to the rejection or admission of evidence were, well taken. The flour by the Georgiana was not in dispute, and the evidence relating to it or of conversations connected with it were properly excluded. The plaintiffs were seeking to recover for a loss on the flour by the Biddle only, and what was said or done with respect to the Georgiana flour was wholly immaterial.

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10 Bosw. 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milbank-v-dennistoun-nysuperctnyc-1863.