Perkins v. Catlin

11 Conn. 213
CourtSupreme Court of Connecticut
DecidedJune 15, 1836
StatusPublished
Cited by22 cases

This text of 11 Conn. 213 (Perkins v. Catlin) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perkins v. Catlin, 11 Conn. 213 (Colo. 1836).

Opinion

Huntington, J.

The record presents two questions for our decision. 1. What is the contract, implied by law, in a blank indorsement of a negotiable note, made by a stranger to the note, for the benefit of the payee, to insure the maker’s responsibility, in cases where there is no other proof of the contract, except such as arises from the indorsement itself? 2. Is parol evidence admissible, as between the indorser and payee, to prove the contract which was in fact made, at the time of the indorsement, and which such blank indorsement was intended, by the parties, to consummate?

We had supposed the first of these questions had long since received an answer, by repeated adjudications of this court. At an early period of our judicial history, we find, that the legal nature and effect of a blank indorsement of a note not negotiable, became a subject of investigation and decision. It was always the law in this state, that such an indorsement, pri-ma facie, implies a contract on the part of the indorser, that the note is due, that the maker shall be of ability to pay it when it conies to maturity, and that it is collectible by the use of due diligence. On this point, the decisions have been uniform in Connecticut. And if it be said, that such construction of a blank indorsement is peculiar to this state, it is not the less definitely and judicially settled, because it is confined to our own jurisdiction. We have always rejected the doctrine that such an indorsement constitutes the indorser a joint maker of the note, or an absolute guarantor, creating a liability at all events, on the dishonour of the note by the maker, or a second indorser of the note, and liable only to the subsequent parties [219]*219to it. Whatever views of this subject may have been entertained, by the courts of other states, the judicial decisions of our own courts have given to such an indorsement, an unquestionable signification and legal meaning, which no power, ex cept that which makes law, can alter. We are not at liberty, therefore, to consult the adjudications of other judicial tribunals, however enlightened, to aid us in ascertaining what is our law, as applied to this subject. Were the reasons on which it is founded, less obvious and just than we think they are, all en-quiry into them, we consider to have been long since closed, by repeated and solemn decisions of the court of dernier resort in this state. If the maxim, stare decisis, is worthy a place in our code, and is ever to have an application, the present would seem to be a most fitting occasion on which to apply it. A reference to a few of the authorities applicable to this subject, may not be inappropriate, inasmuch as the point which they profess to settle and put at rest, is again presented for our consideration.

The late Ch. Justice Swift, in his treatise on Bills of Exchange and Promissory Notes, published in 1810, p. 342. makes the following remarks: A blank indorsement contains a warranty that the note is due and valid according to the terms of it, that it is collectible with the use of due diligence, and that the maker is of sufficient ability to pay it. In his Digest, published in 1822, vol. 1. p. 434. he says, an indorsement in blank contains a warranty that the note is due and collectible with the use of due diligence, and that the maker is of ability to pay it. In the case of Bradley v. Phelps, 2 Root 325. decided in 1796, it was held, by the superior court, that in ordinary cases, the indorser of a note undertakes that the money shall be obtained from the promiser, when it falls due, by the indorsee, he using due diligence and taking the remedies which the law has provided ; but if the indorsee suffers it to lie, without taking any legal steps to secure or recover it, the indorser will be exonerated in case of a loss, unless the promiser was absolutely a bankrupt, when the note fell due. In Williams v. Granger, 4 Day, 444. decided in 1810, this court said, that an in-dorsement in common form, is a warranty that the note is clue and collectible, by using due diligence. In Huntington v. Harvey, 4 Conn. Rep. 124. decided in 1821, we said, by uniform and long continued usage in this state, as well as by re[220]*220peated determinations, a blank indorsement on a note not negotiable, contains a warranty that the note is due, that the maker shall be of ability to pay it when it reaches maturity, and that it shall be collectible by the use of due diligence. In Welton v. Scott, 4 Conn. Rep. 527. decided in 1823. we adhered to the previous decisions, and in the fullest manner confirmed them. The subject was much considered, and we declared, that by usage for a long period, perhaps immemorial, and by frequent adjudications, the nature of such a blank in-dorsement has been clearly and definitely established. The court intended to put at rest, if possible, all future controversy relative to the nature of such a contract. In Prentiss v. Danielson, 5 Conn. Rep. 175. also decided in 1823, we again repeated, that an indorsement of a note not negotiable, contains a warranty that the maker is of ability to pay it, and that it is collectible by the use of due diligence.

In the argument, our attention was called to two cases, decided by this court, which were supposed to establish the doctrine that a blank indorsement of a note not negotiable, by a stranger, is an absolute guaranty that the note shall be paid at maturity, and that on failure of such payment, the assignee has an immediate right of action against the indorser, in all cases and under all circumstances.

One of these cases is Beckwith v. Angell, 6 Conn. Rep. 315. decided in 1823. On examining this case, we find no such point decided by the court. The controversy between the parties was confined to the question whether parol evidence was admissible to show that the indorsee agreed to become an absolute guarantor, and that the indorsement in blank was made in pursuance of, and to carry into effect that special agreement. It is true, the Judge who gave the opinion of a majority of the court, said, that “had the indorsement remained blank, it must have been considered, prima facie, a guaranty or nothing.” In what sense he intended to use the word “guaranty,” is not, perhaps, entirely obvious. If he meant nothing more than that the blank indorsement was a guaranty that the note should be collectible by the use of due diligence, it was a mere substitution of the term guaranty, for the term warranty. This is in accordance with the fair import of the language used; and is presumed to have been his meaning, especially when taken in connexion with what was [221]*221known by him, as well as the rest of the court, to be an established rule in this state, that such a blank indorsement does not, prima facie, import an absolute promise to pay, on the dishonour of the note.

The other case referred to, is Wylie v. Lewis, 7 Conn. Rep. 301, decided in 1828. In that case, the note was negotiable, and was indorsed by the defendant in blank, while in the hands of the payee, on a sufficient consideration, and as additional security to the payee. The only point decided by the court, or intended to be decided, was one which required the same decision, whether the indorsement implied an absolute, or a conditional promise.

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Bluebook (online)
11 Conn. 213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perkins-v-catlin-conn-1836.