Tucker v. Peaslee

36 N.H. 167
CourtSupreme Court of New Hampshire
DecidedJanuary 15, 1858
StatusPublished
Cited by2 cases

This text of 36 N.H. 167 (Tucker v. Peaslee) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tucker v. Peaslee, 36 N.H. 167 (N.H. 1858).

Opinion

FowleR, J.

It seems conclusively settled by the weight of authority, that if, in the present case, the one hundred and fifty dollars, borrowed by the defendant of Blye, were in fact obtained for the firm and appropriated by them to their own use, the indebtedness therefor was a firm debt, although the defendant’s note alone was taken for it, and although Blye supposed he was loaning the money to the defendant, and actually gave the credit to him. The authorities are uniform in maintaining the doctrine that where the principal is unknown to the vendor at the time of a sale, he may, upon discovering the principal, resort to him for payment, although, in the absence of such knowledge, the credit may have been given to the agent alone, and his individual note alone have been taken for the debt. Story on Agency 291; Paterson v. Gandasequi, 15 East 62; Raymond v. Crown and Eagle Mills, 2 Metcalf 324 ; Thompson v. Davenport, 9 Barn. 6 Cress. 78.

The same principle, which seems to have been uniformly applied to the case of principal and agent, is equally applicable to that of an individual partner and his firm. Each partner is an authorized agent for the firm; and if the individual partner obtain money or goods on his own credit for the use of the firm, without disclosing the interest of the partnership in the transaction, the debt contracted is the debt of the firm, notwithstanding the note of the individual partner alone may have been given and taken therefor. Smith & Lougee v. Smith & Bannister, 7 Foster (23 N. H.) 253 ; Reynolds v. Cleveland, 4 Cowen 282; Griffith v. Buffum, 7 Wash. 181; Muldon & al. v. Whitlock, 1 Cowen 290 ; Brown v. Sewley, 2 B. & P. 518 ; Sehermerhorn v. Loines, 7 Johnson 311 ; Saville v. Robertson, 4 D. & E. 720 ; Hoare & als. v. Dawes & al., Douglass 371; Jaques v. Marquand, 6 Cowen 497 ; Everett v. Chapman, 6 Conn. 347.

Any evidence, therefore, going to show that the firm, consisting [177]*177of the plaintiff and the defendant, received and appropriated the money, or in any other way recognized and treated the one hundred and fifty dollars indebtedness to Blye, or the defendant’s note given for it, as the debt of the firm, was competent and'appropriate to sustain the defence relied upon ; for such evidence would have been competent and proper to have enabled Blye to maintain an action against the firm, for the money originally loaned to the defendant alone. In this view the court very properly instructed the jury that if the plaintiff, at the time he received the note of Blye, understood that it had been given for money borrowed for the partnership and used in the partnership business, and it was then understood by both partners that it was a partnership debt, and recognized and treated by them as such, the plaintiff could not recover.

The case finds that the plaintiff paid Blye for the note in April, 1846, by conveying to him the store in which the partnership business had previously been carried on ; while, in the same way, and at the same time, he paid him the hundred dollar note, which, upon the evidence, must be considered to have been a partnership debt. Now, it is too clear to need illustration or the citation of authorities, that if the plaintiff and defendant then regarded and treated the $150 note as a partnership debt, given for money used in the business of the firm, and the plaintiff paid it as such, the note was/awciwa officio, and could not afterwards be revived or negotiated by Blye to the plaintiff, as a valid, subsisting note; and whatever other remedy the plaintiff might have, if it turned out that the note had been paid by him wrongfully, or through mistake, he could not obtain redress through a suit upon a defunct note, transferred to himself nearly five years afterwards, apparently for the sole purpose of enabling him to institute a suit thereon in his own name against the defendant.

The court further instructed the jury, that if they found any other or different state of facts than that specified in the instructions to which we have just referred, the plaintiff was entitled to their verdict. This part of the charge was at least sufficiently favorable to the plaintiff, and included substantially the instruc[178]*178tions asked for by him, and more. Where the instructions given to the jury embrace substantially those asked for by the party, although in different language, the refusal to give the instructions requested, in the precise language suggested, although they may have been proper, is no sufficient cause for setting aside the verdict. The precise words used are immaterial, unless calculated to mislead the jury, and the court is entitled to select its own phraseology. Here the court in effect instructed the jury to return their verdict for the plaintiff, unless they found, among other things, that the plaintiff had actually paid the $150 note to Blye as a partnership debt, understanding it to be such at the time of payment. Now, it is quite clear that the plaintiff cannot rightfully complain that he was injured by the instructions so given. The wrong done was to the other party ; for it is very evident that if the note were actually a partnership debt, and given for funds appropriated by both partners to the use of the firm, and the plaintiff paid it, whether he understood at the time of payment that it was a partnership debt or not, he could not afterwards, by obtaining a transfer thereof to himself, collect the whole amount of his partner. Edgerly v. Emerson, 3 Foster (23 N. H.) 560, and authorities there cited.

So, too, we think the instructions of the court in relation to the entries made by either or both the partners, or their authorized clerks, on the partnership books, in the regular course of their business, during the. continuance of the partnership, to have been strictly correct. Entries made by one partner during the partnership, in a book of accounts, are admissible evidence against, and bind both, on the principle that each partner is an authorized agent of the firm. Walden v. Sherburne, 15 Johnson 409. It was the duty of the defendant, If he received money of Blye for the partnership, to enter, or cause to be entered, the receipt thereof in the books of the firm, so that the same might be open to the inspection of the plaintiff. And such entry having been made by the common agent of both partners, is evidence against both, whether both knew of its existence or not. A memorandum in writing in the books of a company, made by an [179]*179agent of the parties and at their request, is evidence for or against them, and for and against all parties claiming under them. New-England Manufacturing Co. v. Vandyke, 1 Stockton 498. In an action by a hank against a depositor for having overdrawn, the books of the bank are competent evidence to show receipts and payments of money, the officers of the bank being so far the agents of both parties. If the clerk who made the entries is dead or insane, the book itself is admissible, upon proof of his hand writing. Union Bank v. Knapp, 3 Pick. 96. Entries made by clerks, in the usual course of business, are admissible, when the clerks are deceased. Brewster v. Doane, 2 Hill 537.

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Bluebook (online)
36 N.H. 167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tucker-v-peaslee-nh-1858.