Plymouth County Bank v. Gilman

56 N.W. 892, 4 S.D. 265, 1893 S.D. LEXIS 72
South Dakota Supreme Court·Decided November 24, 1893·Published·Cited by 3 cases

Opinion

Bennett, P. J.

This cause was before us at a former term of this court. An opinion was rendered upon the merits, reversing the judgment of the court below, which is reported in 52 N. W. Rep. 869. Afterwards, upon petition, a rehearing [267] was granted. The issue raised in the original cause was whether or not the appellant had been guilty of negligence in failing to collect certain notes left with it by the respondent for that purpose. During the trial of the case the court below permitted a witness to testify to certain declarations made by the cashier of the appellant concerning the failure of the bank to collect the notes, wherein he said, “there was no need of worrying, as it was their fault, but they would go right on and collect them, ” and that it was through their neglect that the notes had not been collected. This testimony was objected to by the appellant, but the objection was overruled, and it was allowed to go to the jury. Upon appeal this court held that the cashier’s declarations that the failure to collect was the “fault” and “neglect’’ of the bank was nob competent testimony, andithaving been received by the court below, the case must be reversed, and a new trial ordered.

The former opinion in this case indicates that this testimony was objectionable and vicious, because it came from an agent or officer who, by reason of his agency or official position, was not competent to characterize the acts of the principal to its detriment. The respondent, in his motion for a rehearing, combats the theory of our former opinion upon these grounds: First. The evidence, if competent to have been given by the principal, was competent to have been given by the agent of the principal. Second. If the objectionable evidence was improperly admitted, the case should not be reversed if there is sufficient evidence competent to sustain the verdict. Third. The objectionable evidence was simply a conclusion of law, and a motion to strike out all prior answers of the witness could not have been sustained without committing error prejudicial to the defendant, Gilman, because much of the'testimony of the witness was competent and pertinent.

As to the first proposition, the witness Gilman, in his answer to a question, among other things stated that the cashier bank told it was ‘ ‘their fault, ” and ‘ ‘through their neglect, ” [268] that the Mason notes were not collected. The opinion had determined that this conversation was had during the pendency of the transaction. Such being the case, the respondent contends that the declarations of the agent concerning the acts of the principal which characterized the manner in which he performed the duties of such collector are competent and binding upon the principal. While we may agree with the respondent that an admission made by an agent while acting within the scope of his authority, and within the legitimate province of his delegated power, is by universal rule of evidence admitted as against his principal, yet this admission must directly relate to the subject-matter in controversy, or be so intimately connected with it as to constitute a part of the res gestae. The declarations of the agent are inadmissible to bind the principal unless they constitute the agreement he is authorized to make, or relate to and accompany an act done in the course of an agency. The objectionable statements of the bank cashier were neither of these. When the bank took the Mason notes for collection, it was no part of their agreement that they should neglect to do so, or that they should be so dilatory in the matter that the security should become worthless. This was the question to be determined by the action then pending. This was the issue then on trial. What the bank did or failed to do in relation to the collection was .competent, but the conclusion or opinion of one of its officers as to the result of their acts, we think was inadmissible. That is what we said in our former opinion, and we have no reason to think differently now.

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Plymouth County Bank v. Gilman, 56 N.W. 892, 4 S.D. 265, 1893 S.D. LEXIS 72 (S.D. 1893).

56 N.W. 892 (Plymouth County Bank v. Gilman) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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