Scovill Manufacturing Co. v. Cassidy

275 Ill. 462
CourtIllinois Supreme Court
DecidedOctober 24, 1916
StatusPublished
Cited by73 cases

This text of 275 Ill. 462 (Scovill Manufacturing Co. v. Cassidy) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scovill Manufacturing Co. v. Cassidy, 275 Ill. 462 (Ill. 1916).

Opinion

Mr. Justice Carter

delivered the opinion of the court:

This was an action brought in the municipal court of Chicago by defendant in error against plaintiffs in error as guarantors under a certain contract. The jury returned a verdict of $5000 in favor qf defendant in error, upon which judgment was entered. On appeal to the Appellate Court that judgment was affirmed. The case wras brought to this court on a petition for certiorari.

During the latter part of 1906 the Canchester Incandescent Kerosene Light and Heat Company, which was a selling and distributing company, negotiated with defendant in error, a manufacturing company, to furnish it a special burner for kerosene lamps and the parts used in connection therewith. As a result of these negotiations such a contract was made and an instrument of guaranty was executed by plaintiffs in error at the time or shortly after such contract was made, reading as follows:

“Whereas, Canchester Incandescent Kerosene Light and. Heat Company, located in Chicago, Ill., desire to have certain articles manufactured by the Scovill Manufacturing Company, a corporation duly organized and located in Waterbury, Conn., and for that purpose has given the Scovill Manufacturing Company a certain order for the manufacture of said articles and expect in future to give other orders for the manufacture of other articles.
“Now, therefore, the undersigned, in consideration that the Scovill Manufacturing Company will accept all such orders and will manufacture and deliver all such goods to the said Canchester Incandescent Kerosene Light and Heat Company as the same shall be required from time to time, do hereby become surety for the punctual payment to the said Scovill Manufacturing Company of all money which shall become due to the said company by reason of the manufacture and delivery of goods which have been or shall hereafter be ordered by the said Canchester Incandescent Kerosene Light and Heat Company, and if any default shall be made in such payment or parts of payment, we do covenant and agree with the said Scovill Manufacturing Company to pay the said company on demand of such sum or sums of money as shall be sufficient to make up such deficiency and fully satisfy the terms and conditions of any order or orders which have been or shall hereafter be given to the said company by the said Canchester Incandescent Kerosene Light and Heat Company without requiring any notice of non-payment or proof of demand being made, provided that the sum required to make up said deficiency shall not exceed five thousand dollars ($5000).
“Given under their hand and seal this 24th day of Dec., 1906.
Ray Fulton,
JAC0B Alter.
Witness: Henry S. Blum, D. J. Canchester.”

Ray Fulton, who signed this guaranty, is a woman. Before this trial she had married a man by the name of Cassidy. She and the other guarantor, Alter, were both directors and stockholders in the Canchester Company, and for at least a part of the time involved in these transactions Mrs. Cassidy was secretary and treasurer of the concern and Alter was vice-president. The Scovill Company furnished the Canchester Company under the first order, during the years 1909 and 1910, goods valued at $7000. In March, 1908, the Canchester Incandescent Kerosene Light and Heat Company changed its name to the Canchester Light Company. The burners were delivered after the change in name. There was no change in the stockholders or officers of the corporation after the name was changed. A second order (the exact amount in value of this order is not clear from the record but apparently it was more than $10,000) was given in March, 1910, and practically all of the goods were manufactured and delivered to the Canchester Company before its failure, the latter part of January, 1912. Previous to this last mentioned date defendant in error accepted another order from the Canchester Company for the manufacture and delivery of goods worth approximately $6000, and had manufactured about $5000 of the goods but had delivered none of them.

Plaintiffs in error both testified on the trial that they had stated to Henry W. Adams, Jr., the manager of defendant in error’s Chicago office and who accepted the various orders for these goods from the Canchester Company, before the second order was made, that they would not be responsible as guarantors for more than the first order. Adams denied positively that they had made any statements of that kind at any time to him or that he had talked with either or both of them with reference to their being no longer liable under the guaranty contract. The weight to be given to the evidence, when submitted to a jury and when their finding of fact has been approved by the trial and Appellate Courts, cannot be inquired into here. No question can be raised in this court as to whether one witness is more credible than another or whether the preponderance of the evidence is against the verdict. (Reiter v. Standard Scale Co. 237 Ill. 374; Fesser v. Chicago and Illinois Midland Railway Co. 267 id. 418.) There being evidence in the record fairly supporting the verdict on this point, the verdict of the jury and the judgment of the trial court, affirmed by the Appellate Court on these questions o'f fact, are binding on us.

Counsel for the plaintiffs in error also seek tó limit the transaction to which the guaranty would apply to the first order of the Canchester Company, claiming that the wording of the guaranty contract so limits it. There is- some conflict in the authorities as to when a guaranty- is á con-tinning or a limited one. Where by the terms of the written guaranty it appears that the parties look to a future course of dealing or a succession of credits it is generally considered a continuing guaranty. (First Nat. Bank v. Waddell, 4 Ann. Cas. [Ark.] 818, note; 14 Am. & Eng. Ency. of Law,—2d ed.—1139.) The wording of this contract indicates clearly that it was intended to cover not only the order that had already been agreed upon by defendant in error and the Canchester Company, but future orders of the same nature. Obviously, by their actions plaintiffs in error so construed the contract. It is further argued in this connection that the guarantors intended not only to limit their liability to $5000, but that they should be liable only if the goods ordered and "delivered should not exceed in value $5000. This argument seems to us without merit. The order made at the time this contract was executed was for a sum in excess of $5000. Furthermore, under the wording of the entire contract it seems clear that the amount of the guaranty was a limitation upon the liability of the guarantors and not upon the credit to be extended. The reasoning of the court under a somewhat similar guaranty in Taussig v. Reid, 145 Ill. 488, in our judgment tends strongly to uphold this view. The cases cited and relied on by counsel for plaintiffs in error on this point, such as Ryan v. Trustees of Shawneetown, 14 Ill. 20, and Finney v. Condon, 86 id. 78, we do not deem in point, as the facts and the wording of the contracts under consideration were very different from those here.

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Bluebook (online)
275 Ill. 462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scovill-manufacturing-co-v-cassidy-ill-1916.