Planters Chemical & Oil Co. v. Stearnes

66 So. 699, 189 Ala. 503, 1914 Ala. LEXIS 221
CourtSupreme Court of Alabama
DecidedNovember 7, 1914
StatusPublished
Cited by5 cases

This text of 66 So. 699 (Planters Chemical & Oil Co. v. Stearnes) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Planters Chemical & Oil Co. v. Stearnes, 66 So. 699, 189 Ala. 503, 1914 Ala. LEXIS 221 (Ala. 1914).

Opinion

MAYFIELD, J.

Appellant sued, appellees on a promissory note which was in words and figures as follows :

“1638.76 Guntersville, Ala., May 20, 1910.
“On the first day of January, 1911, the Farmers’ Union Warehouse & Mfg. Co-, promise to pay Planters’ Chemical & Oil Company, or order, the sum of six hundred thirty eight & 76/100 dollars, value received. And for the faithful payment of this note and attorney’s fees, we hereby waive any and all rights we have under the laws of Alabama and of every state to claim any property exempt from levy and sale or choses in action from garnishment. Should this note be not paid at maturity and be placed in the hands of an attorney for collection we agree to pay the holder or assignee such reasonable sum as said attorney may charge as a fee for the collection thereof. It is agreed by the maker and indorser hereof that this note is negotiable and not subject to offsets, recoupments, discounts and equities of nonnegotiable paper. Protest and notice as well as suit against the maker and indorser or indorsers is hereby by each of us severally waived. It is further agreed by the maker and indorsers that upon failure to pay this note at maturity all other obligations owing by them jointly or severally to said payee may at once, at the option of said payee, become due.
“Payable at the Talladega National Bank, Talladega, Ala.
“J. B. Stearnes, Pres. [L. S.]
“J. H. Wood, Vice President. [L. S.]
“J. W. Nelms, Sec. & Treas.
[505]*505“J. M. Dodd.
“W. S. Wiles.
' [Seal.] Farmers’ Union Warehouse & Mfg. Co., Gunterville, Ala.”

The defendants pleaded specially: (1) Non est factum; (2) that the consideration for the note was commercial fertilizer, and that it was not tagged; (3) that no statement was filed with the commissioner of agriculture as required by law; (4) that the bags were not properly branded; (5) that there was no consideration for the note; and (6) that the fertilizer did not contain the amounts or percentage of phosphoric acid, nitrogen, and potash, required by law.

It was not contended on the trial that the note was not actually signed by the defendants, but it was contended that they did not sign in their individual capacities, but signed’ only as officers of the Farmers’ Union Warehouse & Manufacturing Company, and that the corporation alone was bound. Whether the plea of non est factum raised this issue as to the capacity in which the defendants signed is not contested on this appeal. i

The note on its face is ambiguous as to the capacity in which these defendants signed. The promise, in the body of the contract, is that of the corporation, and not of the officers or parties signing; but in the conditions, as to the payment of attorney’s fees, etc., and as to waiver of' the rights of exemption, it appears that the signers are bound, and not the corporation, for the reason that the corporation, or the officers, as such, had no exemption rights to waive; and, if the officers were not made liable individually, what was the occasion or use of their waiving their rights to exemptions and promising to pay attorney’s fees and costs? Parol evidence was therefore admissible to explain or clear this [506]*506apparent ambiguity. Sucb evidence, in cases of this kind, does not contradict or vary tbe writing, but explains it, and so aids in the ascertainment of tbe real contract between tbe parties. But, from tbe fact that parol evidence is admissible in sucb cases, it does not follow that tbe signers can testify as to tbeir undisclosed intentions in signing tbe notes. Nor are conversations between or among tbe signers, when the payee or other parties to tbe note are not present, binding on the payee or bolder; and they are therefore not admissible, unless they form a part of tbe res gestae of tbe execution of tbe note.. Any conversation by and between tbe parties to the instrument, at tbe time of, or prior to, tbe making of tbe note, which will tend to explain tbe ambiguity on tbe face of tbe note is admissible; but conversations between tbe makers, bad in tbe absence of tbe payee or other parties interested in tbe making of tbe note or contract, are not admissible. Tbe other parties must be bound by tbe declarations or acts, for them to be admissible; they must have bad tbe opportunity to deny tbe statements or declarations, before they are bound thereby.

It was-likewise not admissible for tbe signers of tbe notes to prove that they never beard any of tbe makers say that they signed tbe notes individually, except in so far as sucb testimony might tend to contradict evidence offered by tbe plaintiff to show that sucb makers signed tbe notes individually.

When negotiable instruments, like tbe one in question, on tbeir face are free from ambiguity as to tbe capacity in which tbe signers or indorsers executed them, parol evidence is not admissible to make that fact uncertain; but when, as in this case, tbe note on its face is uncertain as to that fact, then parol evidence is admissible to make it certain. But sucb parol evi[507]*507deuce is governed by tlie general rules of evidence as to mere opinions, conclusions, motives, intentions, self-serving declarations, etc.

An agent signing a bill or note as agent, but not showing any intent to bind the principal, except by the use of mere words of description, is personally liable. The decisions, however, of the various courts, upon the effect of instruments signed by the agent as such without more to show the intent to bind a given principal, and as to competency of evidence to show the intent of the parties, are so conflicting that the Supreme Court of the United States (in the cast of Falk v. Moebs, 127 U. S. 597, 8 Sup. Ct. 1319, 32 L. Ed. 266) says: “It amounts almost to anarchy of the authorities.”—See 1 Daniel on Negotiable Instruments, §§ 401, 408; Bigelow on Bills, p. 47; and the host of English and American authorities collected and reviewed in 4 English Ruling Cases, p. 278 et seq.

“A promissory note which reads: ‘Four months after date we promise to pay to the order of George Moebs, Sec. & Treas., ten hundred sixty-one & 24/100 dollars, at Merchants’ & Manufacturers’ National Bank, value received . [Signed] Peninsular Cigar Co., Geo., Moebs, Sec.' & Treas.’ — and indorsed, ‘Geo. Moebs, Sec. & Treas.,’ is a note drawn by, payable to, and indorsed by the corporation, and without ambiguity in the indorsement ; and evidence is not admissible to show that it was not the intention of the indorser in making the indorsement to bind himself personally.”—Falk v. Moebs, supra, headnote.

“In Keen v. Davis, 1 Zab. (21 N. J. Law) 683, 47 Am. Dec. 182, a bill of exchange of the following purport, addressed to William Thompson, Esq., Somerville, N. J., and indorsed, ‘The Elizabethtown & Somerville Railroad Company, by John Kean, President’: [508]*508‘$500.00. Elizabethtown, Sept., 1841. Six months after date, please pay to the order of the Elizabeth-town & Somerville Railroad Company, five hundred dollars, value received, and charge as ordered. Your obed’t serv’t, John Kean, President Elizabethtown & Somerville R. R.

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Bluebook (online)
66 So. 699, 189 Ala. 503, 1914 Ala. LEXIS 221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/planters-chemical-oil-co-v-stearnes-ala-1914.