Townsley v. Sumrall

27 U.S. 170, 7 L. Ed. 386, 2 Pet. 170, 1829 U.S. LEXIS 432
CourtSupreme Court of the United States
DecidedFebruary 10, 1829
StatusPublished
Cited by87 cases

This text of 27 U.S. 170 (Townsley v. Sumrall) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Townsley v. Sumrall, 27 U.S. 170, 7 L. Ed. 386, 2 Pet. 170, 1829 U.S. LEXIS 432 (1829).

Opinion

Mr Justice Story

delivered the opinion of the Court.

This is a writ of error to the circuit court of the district of Kentucky. ' The original action was brought by the defendant in error against the plaintiff in error, as one of the firm of Thomas F. Townsley & Co., to recover the amount of a bill of exchange, drawn, at Maysville in Kentucky, on the 27th of November 1827, by one Richard S. Waters, on Messrs Townsley & Co. at New Orleans, at 120 days aftér date for $2000, payable to Sumrall or order, which had been dishonobred by the drawees.

The declaration contained various counts: some of which alleged an actual acceptance of the bill and non-payment, thereof at maturity; others, a promise by the drawees to accept and pay the bill when drawn, if the original plaintiff would purchase the same from the drawér. The cause was tried upon the general issue, and a verdict was found for the original plaintiff for $2860, upon which he obtained judgment. A bill of exceptions was taken at the trial, upon which the questions are presented, which have been argued át the bar.

The bill of exceptions stated, that the plaintiff offered in evidence the bill of exchange and the protest of the notary *175 public at New Orleans, to which evidence the defendant objected, but the court admitted the testimony.

Evidence was then given, by the testimony of John Sum-rall, the plaintiff’s brother, to show that in a conversation between the plaintiff and the defendant relative to some shipments which Richard S. Waters proposed to make to . the firm of Thomas F. Townsley & Co. and bills to be drawn against them; when the plaintiff said he feared the bills would not. be honoured and paid; Thomas F. Townsley told the plaintiff, that the firm would accept the bills of Waters, for $4000, and pay them at maturity. The plaintiff stated he wished to pay a debt in Philadelphia with the bills, and the produce to be shipped by Waters might not arrive in time to provide for them; to. which Townsley replied, that if Waters would draw a bill or bills to the amount not exceeding $4000, such bill or bills should be accepted and paid, whether the produce arrived or not. Waters and the plaintiff had been in partnership before the conversation, but the partnership at the time it took place had been dissolved. Richard. S. Waters testified, that he had drawn the bill for $2000 upon which the suit was brought, and another for the same amount. That in a conversation with the plaintiff before the bills were drawn, the plaintiff wished him to draw for $4000 : he said he was afraid to draw for $4000,. and the plaintiff told him, Towns-ley had said he would pay one draft for $2000, whether the produce to be shipped arrived in time or notand he agreed to draw for $2000, and after some hesitation he drew the other bill for $2000; both bills being drawn in favour of Sumrall: and it was perfectly understood between them that he had no funds in the hands of the drawees, and that the bills were to be sent to Philadelphia tp discharge debts dup by the plaintiff and himself as partners, to Toland & Rockhill anti to others : and the plaintiff agreed to help him to meet one of the bills, if he should be unable to pay both. He gave the plaintiff the bills for $4000 of partnership goods taken by him at the dissolution of the partnership. That.the partnership accounts were not settled; and he received no other consideration for the bills than the receipt of the *176 $4000 .of partnership goods. He furnished Thomas. F. Townsley &, Co. with produce enough to pay one of the drafts, and they paid one of them. Townsley & Co. had no funds or effects in their hands belonging to him. On the dissolution of the partnership, he understood the plaintiff was to wind up the concern and pay the debts.

The defendant then offered in evidence the record of a suit of Toland & Rockhill against Sumrall & Waters; which was objected to, and the objection sustained by the court.

The deposition of Langhorne wás then read, stating that that in 1819, he heard Waters say, his credit was better abroad than at home, for Townsley had promised to accept for him for $4000 for Sumrall, whether his produce.got down in time or notl

Evidence wa3 also given to show, that-shortly after the bills of exchange were drawn, Waters became totally insolvent.

The deposition of Samuel D. -Lucas was read on the part of the plaintiff. He stated that he heard Townsley assure . the plaintiff that the drafts of Waters to the amount of $4000, which Waters , proposed to let the plaintiff have, to be drawn by Waters on the hoúse of Thomas F. Townsley & Co. of New Orleans, at 120 days after date, should be paid. The plaintiff consented to take the drafts with considerable reluctance, for fear of accident; upon which Townsley assured him the drafts should be honoured, whether the produce to be shipped by Waters arrived or not. Upon the faith of Townsley’s accepting for Waters, the bills were received, and the plaintiff advanced large quantities of merchandise and other articles.

The,plaintiff prayed the following instruction to the jury, which was given, and to which the defendant excepted: That if they shall believe from the evidence in this case that the defendant Townsley promised for himself and company, to Sumra.il, that they would honour, accept, or pay bills drawn on them by Waters to the amount of $4000; and that Sumrall did immediately thereafter, or within a reasonable time, upon the credit of said premise, purchase bills drawn by Waters, accordingly, to the amount of $4000, and that the bill in the *177 declaratipn mentioned, is'one of the bills so purchased; then that the plaintiff upon the evidence, is entitled to recover; whether the purchase was made before or after the drawing of said bills, or Whether they were drawn for a pre-existing' debt, or drawn and sold for any other good and valuable consideration.

r The defendant then asked the court to instruct the jury : 1.That if they believe from the evidence,that the defendant by parol stated that he would accept'.abill or bills to the amount of $4000, before the bills were drawn, and before the defendant had received the amount or any part of it, under the expectation and belief that the drawer Richard S;Aba-ters would put funds into his Hands to take up the bills at maturity,; and that the plaintiff knew that the said Richard had' no funds, but made the promise in anticipation of such funds, and that no funds to take up the bill were placed in the hands of the defendants or either of them, to take up the bill, nor had the drawer any funds in the bands of the drawee to draw upon; that they should find for the defendant; provided the jury further .find.that the plaintiff and R. S. Waters the drawer, were partners in trade, and as such were indebted on their partnership account to Toland & Rockhill; and that the bill was drawn by the said Waters in .favour of the plaintiff, with a view to raise funds, or to be passed in direct payment of a joint debt due as aforesaid ; arid that the said bill, with this object and view, and in pursuance of an agreement between drawer and plaintiff, was passed to the credit of the drawer and plaiptiff to Toland & Rockhill.

2. That if they believe the said bill was drawn to pay a partnership debt as stated by R. S.

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Bluebook (online)
27 U.S. 170, 7 L. Ed. 386, 2 Pet. 170, 1829 U.S. LEXIS 432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/townsley-v-sumrall-scotus-1829.