Rogers v. Union Stone Co.

130 Mass. 581
CourtMassachusetts Supreme Judicial Court
DecidedApril 8, 1881
StatusPublished
Cited by12 cases

This text of 130 Mass. 581 (Rogers v. Union Stone Co.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rogers v. Union Stone Co., 130 Mass. 581 (Mass. 1881).

Opinion

Endicott, J.

It appears that Buchanan, Ware and Company had a contract with the defendant for the delivery of certain goods, and on January 8,1876, they signed an order directed to the defendant to deliver to the Wood and Light Machine .Company two thousand dollars in the said goods. The order was accepted by the defendant’s treasurer on the same day, and, on January 10 following, was given to the company to hold as [583]*583collateral security for the payment of five promissory notes of that date, signed by Buchanan, Ware and Company.

This order was for the delivery of two thousand dollars to be paid in merchandise, and is not negotiable. Gushee v. Eddy, 11 Gray, 502. It was said by Mr. Justice Metcalf in Sears v. Lawrence, 15 Gray, 267, The law and incidents of a bill of exchange do not attach to such an instrument.”

By the acceptance merely of this order the defendant entered into no contract with the Wood and Light Machine Company. The company was no party to the contract, and if the defendant made any binding contract by accepting the order, it was with Buchanan, Ware and Company.

This case falls within the rule laid down in numerous decisions in our reports, and which is well stated in Exchange Bank v. Rice, 107 Mass. 37, “ that a person who is not a party to a simple contract, and from whom no consideration moves, cannot sue on the contract, and consequently that a promise made by one person to another, for the benefit of a third person who is a stranger to the consideration, will not support an action by the latter.” See also Millard v. Baldwin, 3 Gray, 484; Field v. Crawford, 6 Gray, 116; Dow v. Clark, 7 Gray, 198; Pettee v. Peppard, 120 Mass. 522 ; Gamwell v. Pomeroy, 121 Mass. 207; Cottage Street Church v. Kendall, 121 Mass. 528; Prentice v. Brimhall, 123 Mass. 291.

The exceptions to this rule, so far as they have been at any time recognized in this Commonwealth, are stated ánd discussed in Mellen v. Whipple, 1 Gray, 317, as well as in Exchange Bank v. Rice, and need not be further considered, inasmuch as the case at bar does not fall within them.

Nor do the cases of Walker v. Sherman, 11 Met. 170, Sears v. Lawrence, 15 Gray, 267, and Eastern Railroad v. Benedict, 15 Gray, 289, furnish any support to the plaintiffs. The facts in those cases distinguish them from this case.

In Walker v. Sherman, it was held that a suit could be maintained by the payee against the acceptor of an order for merchandise, upon proof that the drawer was in debt to the payee when the order was drawn, that it was given in payment of the debt, and was accepted at the request of the drawee when it was drawn; all the parties being present at the acceptance, [584]*584The fact that the order was given in payment is relied on in the opinion by Mr. Justice Wilde, as showing that the plaintiff could maintain no action except on the order; and as loss to the plaintiff, as well as benefit to the defendant, would be a good consideration, there was a sufficient consideration to support the promise. And even if it was not given in payment of the debt, yet the other facts would authorize the inference that the plaintiff agreed to forbear suing the drawer on receiving the order. It is upon this last ground that the case is cited as authority by Mr. Justice Wilde in Johnson v. Wilmarth, 13 Met. 416, 421; by Chief Justice Shaw in Boyd v. Freize, 5 Gray, 553, 555; and by Mr. Justice Bigelow in Mecorney v. Stanley, 8 Cush. 85, 88. As the payee was present when the order was accepted, the facts would have also warranted the inference of a direct promise to the plaintiff by the acceptor. There is no evidence in the case before us, that there was any agreement to forbear to sue the drawer by the payee, as the debt for which he finally took the order, as collateral security, apparently was not contracted until after the order was drawn and accepted; and, if it were, the defendant had no knowledge of the transaction. Ellis v. Clark, 110 Mass. 389.

In Sears v. Lawrence, it was held that an oral promise by the drawer of an order payable in merchandise, after he knew it had not been fulfilled, to deliver the merchandise, would not support an action. The remark of Mr. Justice Metcalf in delivering the judgment, that the plaintiff could maintain an action against the acceptor if there was a legal consideration for the acceptance, must be understood to mean, if the acceptance was made after the order passed into the hands of the plaintiff, by a promise to him. The remark, not being necessary to the decision of the case, is not so carefully limited and qualified as it would otherwise have been.

In Eastern Railroad v. Benedict, one Fuller agreed with the defendant to deliver him a quantity of goods to be paid for in the stock of a corporation, and afterwards drew his order on the defendant to give a certain number of shares to the plaintiff, and the defendant promised the plaintiff to deliver the stock accordingly, and the action was maintained. In the case at bar there was no promise to the plaintiffs by the defendant, at the [585]*585time the order was drawn or afterwards, to pay the order or deliver the merchandise. And, in the opinion of a majority of the court, the case as presented to us falls within the general rule stated in Exchange Bank v. Rice.

Exceptions sustained.

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130 Mass. 581, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rogers-v-union-stone-co-mass-1881.