Neilson v. Blight

1 Johns. Cas. 205
New York Supreme Court·Decided October 15, 1799·Published·Cited by 20 cases

Opinion

Radcliff, J.

. Here was no lien on the part of the plaintiff-; the delivery was complete to Green, the agent of Dixon, Williams & Co. and the property was thereby fully changed. A part of it was converted into wine, the subject over which the lien contended for could only be exercised, and the residue was otherwise disposed of.

Green, as the friend of the plaintiff, stipulated with Raddon, that he should not part with the wine, till the sum of 150QZ. was first paid or secured to the plaintiff. For that purpose, Raddon executed a bond or covenantto the plaintiff. Raddon was at this timé the agent of Dixon, Williams & Co. arid the person to whom C. Baring also had entrusted the care of his interests. Whether Raddon had authority from his principals to mate the stipulation above mentioned or not, is perhaps immaterial. That was a question between him and them only, and could not affect the plaintiff. By making the stipulation, and receiving the wines as he did, a trust was created for the benefit of the plaintiff, which the plaintiff had a right to affirm, and avail himself of. . This trust was transferred to the defendant, who became equally responsible with Raddon, by receiving the wines on the samé terms. That he so considered himself is evident, since he wrote to the plaintiff to that effect, and informed him that his brother, by the tenor of the bond was to see him paid, and afterwards, that he always supposed his brother had paid him. The brother acted only by authority from the defendant, and as his sub-agent. The first of those letters imports a promise, and if it did not, there was an implied assumpsit in law, the fund being in the defendant’s hands, and received by him, for the benefit of the plaintiff, as to 1500Z. of the first proceeds. The plaintiff affirmed the trust, relied upon this source of payment, and was thereby lulled into security, and probably prevented from taking a different remedy^ It appears, too, that the defendant received the approbation of Dixon, Williams & Co. for the *paymerit of this [*209] sum to the plaintiff, and I think he was completely [252] authorized so to do. ■ From the facts in the case, it may also be inferred that the assignment to Baring was secret and fraudulent, but it is unnecessary to resort to that ground, for I adopt it as a maxim, that when a trust is created in any manner, even without the knowledge of the cestui que trust, he may affirm it and enforce the trust.(a)

I am, therefore of ppinion that the plaintiff is entitled to judgment.

Kent, J.

The leading facts on which 1 form my opinion are these ; the plaintiff sold goods to Dixon, Williams & Go. to the amount of his present demand and more. Green -& Raddon, as agents of Dixon, Williams & Co. agreed, and took measures together, to secure the plaintiff his demand out of the proceeds of wine in their possession, as agents, and Raddon, in pursuance of their mutual agreement, delivered the same to the defendant, who was also an agent of Dixon, Williams & Go. on condition that the plaintiff should be paid out of the first proceeds.

The defendant, it is to be inferred from the case, accepted of the wines so delivered, upon the condition annexed, and the acceptance upon that condition, received the approbation of Dixon, Williams & Co.. The defendant having thus received the wines upon that condition, and with the sanction of his principal, became bound in good faith to perform that condition, and to pay the plaintiff out of the proceeds. And [253] what does he accordingly do ? He writes to the plaintiff, and acknowledges the receipt of the wines, and that the condition on which Raddon had undertaken to deliver the wines to him, had received the approbation of' his principal in England, and says that his brother in Philadelphia was to pay the plaintiff out of the first proceeds. The defendant’s brother in Philadelphia, to whom the plaintiff was referred by the letter of the defendant, afterwards writes to the plaintiff that he need not fear, for that he and his brother would detain the money for him.

*From these facts, the law will infer a promise by [*2T0] the defendant to pay-the money, because in justice and good faith he was bound to do so, and gave the plaintiff reason to expect it. On the receipt of the proceeds, he ought instantly to have charged his principal with the payment of the money to his order, and to have credited the plaintiff with it.(a)

[254] All that was done, for aught that appears to the contrary, was without any knowledge of the claim of Baring, and being done by the defendant with the funds in his hands, and without notice of such claim, theft of the plaintiff became the paramount claim-

, But Bad don was thé agent of Baring also, and if he really acted with candor and good faith, then all this was done with the concurrence of Baring, and the approbation that Báddon sought for and received in England, must have proceeded from Baring. If the assignment to Baring was in construction of law to be adjudged fraudulent,- and many circumstances in the case will lead to such a conclusion, then his.claim is wholly without foundation, in reference to the other creditors of Dixon, Williams .& Go. If the assignment be admitted as valid, yet as the property specified in it did not pass by actual delivery, then, of two innocent creditors who are struggling de damno evitando, he who obtains the first pos^ session, or what is equivalent to it, the first promise from the party having possession of the subject, ought, perhaps, to be preferred. (See Pothier, Obliga, n. 73.)

I am, therefore, of opinion that the plaintiff ought to have judgment. '

Lansing, Ch. J. was of the same opinion-

Lewis, J- It was contended for the plaintiff that the- delivery of the goods by him to Green, on account of Dixon, Williams Co. was qualified, with a condition that his debt [255] should be first paid out of the proceeds at Madeira; that his right to stop the goods in transitu, gave him the right to require such a stipulation ; that Green was, therefore his agent as well as the agent of Dixon, Williams & Co. *that Green’s stipulation with Raddon, therefore, [*211] gave the plaintiff a lien on the wines shipped to the defendant, and that the disclosure of the fact to him made it obligatory upon him to secure payment to the plaintiff.

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Neilson v. Blight, 1 Johns. Cas. 205 (N.Y. Super. Ct. 1799).

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