Smith v. Butler & Ward Co.

9 Ohio Cir. Dec. 645, 17 Ohio C.C. 68, 1898 Ohio Misc. LEXIS 329
Lucas Circuit Court·Decided October 1, 1898·Published

Opinion

Parker, J.

This proceeding is brought to reverse a judgment obtained by the defendant in error against the plaintiff in error in the court of common pleas of this county.

The cause of action stated in the petition in the court below arises out of the following circumstances: Charles Truman & Co. in the year' 1895 and '96 were the manufacturers of bicycles in the city of Toledo. The Butler & Ward Co., a corporation under the laws of New Jersey, were manufacturers and vendors at an eastern city of certain bicycle parts among them bicycle saddles. In the season of 1895 Truman & Co. entered into negotiations with the Butler & Ward Co. for the purchase of certain bicycle saddles. In the course of that negotiation it came to ¡.he knowledge of The Butler & Ward Co. that W. H. H. Smith, plaintiff in error, was guaranteeing the performance of contracts entered into by the Truman Co. The Butler & Ward Co. thereupon applied to him for a guaranty of the payment of such indebtedness as might be contracted by Truman & Co. in the purchase of bicycle parts from them, and he gave a written guaranty, which reads as follows:

“Toledo, 0., 5, 13, 1895, (May 13, 1895).
Messrs. Butler & Ward,
“’Gentlemen :■ — Your favor of the 11th inst. is at hand. I will guarantee the account of Truman & Co. for the year 1895.
“Respectfully,
“W. H. H. Smith.”

On July 13, 1895, Truman & Co. gave an order to The Butler & Ward Co. for 1,000, 1896 saddles, styles W and X', deliveries to be specified later, with a clamping pin 7-16 hexagon heád, and other directions about the style of the saddles. The prices to be paid were stated in the order, and this is stated with reference to it:

“It is understood that deliveries are to commence as soon after October 1, 1895, as we shall specify — not later than September 1, 1895 — and' the order to be completed by June 1, 1896. Terms, 60 days.”

The order was accepted by the Butler & Ward Co., and in pursuance of requests from Charles Truman & Co. they from time to time shipped bicycle saddles under this contract for 1,000. The whole num[646] ber of 1,000 was not delivered during the year 1895, and on December 19, 1895, Butler & Ward wrote to plaintiff in error as follows:

“Mr. W. H. H. Smith, Toledo, O.
“Dear Sir: — Your guaranty for goods purchased from u:- by Chas. Truman & Co. of Toledo, O., for the year 1895 will expire on the thirty-first day of this month. We have their order for a number of saddles to be shipped during the present season of 1896, and we write to inquire if your guaranty will cpver purchases for the coming year.’ If so, kindly put the same in writing and send it to us at your earliest convenience, and greatly oblige,
“Respectfully yours,
“Butler & Ward.”

It will be observed that this is not in the form of a request for a new guaranty but rather for a construction of the guaranty already given. In response to this the plaintiff in error, on December 21, wrote as follows:

“Messrs. Butler & Ward.
“Gentlemen: — Your favor of the nineteenth inst. is at hand. The necessity for this guaranty is not apparent for 1896, as I think Chas. Truman & Co. are in good shape. Still, if it will facilitate their business I am willing to guarantee their bills with you for 1896.
“Yours truly,
“W. H, H. Smith.”

It will be observed that there is a slight change in the phraseology of this guaranty from that used in the guaranty of May 13, 1895, .and some deviation from the phraseology used in the letter of Butler & Ward of December 19, requesting- some further assurance; the guaranty of May 13, 1895, being “I will guarantee the account of Charles Truman & Co. for the year 1893.” The inquiry on the part of Butler & Ward is whether Smith’s guaranty will “cover purchases for the coming year;” and the response being that he is willing to “guarantee their bills for the year 1896.”

In the year 1896 two hundred saddles (I believe that is the number) were furnished, completing the contract for 1,000 which had been entered into in the year 1895, and another 100 saddles were furnished which were not covered by that contract; but it is conceded that the guaranty of December 31, 1895, covers that 100. It is claimed that by the terms of the guaranty of May 13, 1895, and also bjr that of December 31, 1895, the 200 saddles furnished in 1896 were covered. These 300 saddles were not paid for by Truman & Co. They made default — became insolvent. Smith, the guarantor, failed to' pay, and this action was instituted to recover the price of the 300 bicycle saddles so furnished.

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Smith v. Butler & Ward Co., 9 Ohio Cir. Dec. 645, 17 Ohio C.C. 68, 1898 Ohio Misc. LEXIS 329 (Ohio Super. Ct. 1898).

9 Ohio Cir. Dec. 645 (Smith v. Butler & Ward Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.