Shuey v. Adair

39 L.R.A. 473, 51 P. 388, 18 Wash. 188, 1897 Wash. LEXIS 136
CourtWashington Supreme Court
DecidedDecember 6, 1897
DocketNo. 2681
StatusPublished
Cited by16 cases

This text of 39 L.R.A. 473 (Shuey v. Adair) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shuey v. Adair, 39 L.R.A. 473, 51 P. 388, 18 Wash. 188, 1897 Wash. LEXIS 136 (Wash. 1897).

Opinion

The opinion of the court was delivered by

Dunbar, J.

The appellant executed to the Seattle Savings Bank the following note:

“$2000.00. Seattle, "Wash., May 6th, 1892.
“ One year after date, without grace, for value received, I promise to pay to the order of the Seattle Savings Bank, at the banking-house of said bank, in the city of Seattle, the sum of two thousand dollars, with interest at the rate of ten per cent, per annum payable semi-annually from date hereof until paid. And if suit shall be commenced for the recovery of any amount due upon this note, I agree to pay an attorney’s fee of fifty dollars.
“ Mo. 230. “ G-eo. B. Adair,
“ Due May 6th, 1893. “ P. O. Address, City.”

This note was discounted by the bank to Ballard, Binehart, Holmes and Bobertson, and the proceeds thereof, the sum of two thousand dollars, was paid by.the bank to the above named, parties. In course of time, after the maturity of the note, the bank sued the appellant, the maker of the note. The essential parts of the amended answer were as follows:

“III.
“ That at the time said note was so discounted as aforesaid, and in consideration thereof, and of the payment of the said proceeds to them, said Ballard, Binehart, Holmes and Bobertson agreed to and with said bank and this defendant that they, the said Ballard, Binehart, Holmes and Bobertson, would within a few days thereafter take up the said note and pay the amount thereof to said bank.
[190]*190“IV.
“ That at and before the discount of said note as aforesaid, said bank well knew that the same was made and executed by the defendant so as aforesaid for and in behalf of said Ballard, Rinehart, Holmes and Robertson, and not otherwise, and that the proceeds thereof were to be used by, and for the sole benefit of the said Ballard, Rinehart, Holmes and Robertson, and that it was discounting the same for, and for the sole benefit of the said Ballard, Rinehart, Holmes and Robertson, and the said defendant received no part of the consideration thereof. And the said bank then and there agreed to and with defendant and said Ballard, Rinehart, Holmes and Robertson that it, the said bank, would look to the said Ballard, Rinehart, Holmes 'and Robertson for the payment of said note, and that this defendant should never at any time be held by said bank liable upon or for the note so made by him as aforesaid nor be called upon to pay the same. And the said bank, pursuant to said agreement, has never asked said defendant to pay said note or any part thereof, but on the contrary has at all times held the said Ballard, Rinehart, Holmes and Robertson liable and responsible to it to pay the same pursuant to the said agreement so made as aforesaid when said note was discounted by it.
“V.
“ That there was no other consideration for the note upon which this action is brought, and no part thereof was received by defendant or any other person for him, as is hereinabove stated, all of which was well known to said bank at and before it discounted said note.
“VI.
“Defendant further answering says, that since he so made and executed said note he has frequently demanded of said Ballard, Rinehart, Holmes and Robertson, that they pay and take up the said note so made by the defendant as aforesaid, and that they frequently promised him they would do so, but have neglected to carry out their said promise and agreement to and with defendant and said bank.
[191]*191“VII.
“ Defendant further answering says that about two years after said bank had so discounted said note as aforesaid, it, said bank, entered into an agreement to and with the said Ballard, Rinehart, Holmes and Robertson, that it would accept the note of said Ballard, Rinehart, Holmes and Robertson for the amount of and in place of the said note so discounted by it for the said Ballard, Rinehart, Holmes and Robertson as aforesaid, and that the said Ballard, Rinehart, Holmes and Robertson thereupon agreed to and with said bank that they would make, execute and deliver to said bank their note for the said amount and take up and deliver to defendant said note so discounted for them.”

The plaintiff interposed a general demurrer to the said affirmative defense, which demurrer was sustained by the court. Appellant, standing upon his answer, moved the court for an order to bring in the said Ballard, Rinehart, Holmes and Robertson as necessary and proper parties to this action, which motion was overruled by the court, and judgment was entered, as prayed, for plaintiff and against defendant. Brora such judgment an appeal is taken to this court.

So that it will be seen that this case involves the question whether an agent who executes a promissory note for his principal can introduce parol evidence to exonerate himself from responsibility; for it may be conceded that paragraph IV of the answer is sufficient to raise this question.

It is contended by the appellant that the authorities sustain this rule, while the respondent contends that the case falls squarely within the rule that the terms of a written contract can not be contradicted by parol evidence. Many cases have been cited by the counsel for appellant, all of which we have carefully examined, and it must be said that upon this important question there is at least an apparent conflict of authority, and the expressions of different courts [192]*192are somewhat bewildering. But while there were expressions used by the courts in some of the cases cited by the appellant, which would seem to sustain his contentions, yet when the case itself is examined, the decision in most of them will be found to be based upon a state of facts unlike the state of facts disclosed by the answer in this case; and most of them fall within one of the three following principles, which seem to be well established, viz.: (1) where the check or order drawn by the agent discloses the principal; (2) where there is enough on the face of the written instrument to render it doubtful whether it was the intention to bind the agent or the principal, and (3) where the instrument was to be delivered upon the taking effect of some future stipulated condition, and it has been delivered before such condition is performed. In each case parol evidence is admissible to show the actual contract; as, for instance, the first case cited by appellant, viz., Brockway v. Allen, 17 Wend. 40, a case which has been cited by many of the subsequent cases, falls within the first rule announced. A note was given by the trustees of the First Baptist Church and Society of the village of Brockport. This society was indebted to the plaintiff for materials furnished to the society, and on account of such indebtedness the note was executed. The trustees signed the note individually, adding “Trustees of Baptist Society.” In that case it was held by the supreme court of New York that the principal was bound and not the agent; but the court gives as the reason of its decision that the fact of the agency substantially appeared on the face of the note.

In Whitney v. Wyman, 101 U. S. 392

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Cite This Page — Counsel Stack

Bluebook (online)
39 L.R.A. 473, 51 P. 388, 18 Wash. 188, 1897 Wash. LEXIS 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shuey-v-adair-wash-1897.