Warner v. Martin

52 U.S. 209, 13 L. Ed. 667, 11 How. 209, 1850 U.S. LEXIS 1504
CourtSupreme Court of the United States
DecidedFebruary 21, 1851
StatusPublished
Cited by57 cases

This text of 52 U.S. 209 (Warner v. Martin) 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
Warner v. Martin, 52 U.S. 209, 13 L. Ed. 667, 11 How. 209, 1850 U.S. LEXIS 1504 (1851).

Opinion

Mr. Justice WAYNE

delivered the opinion of the court.

We state.such circumstances in this case as may be necessary for the application of our opinion to other cases of a like kind.

Martin & Franklin were manufacturers of tobacco in Richmond, Virginia. They were in the habit of shipping the article to Charles Esenwein in New York, as their agent and factor. In April, 1841, they made the first shipment upon a new account to Esenwein, and at intervals during the summer made other consignments to him. It was their practice to draw upon Esenwein, payable in four months, for an estimated portion of the proceeds of sale; among other drafts were the following: —

1841, May 27, at four months, due Sept. 30, for $ 800.
“ June 12, “ “ “' Oct. 15 “ 700.
“ ■ July 3, “ “ “ Nov. 6, “ 300.
“ July 29, « “ “ ■ Dec. \ “ 850.

These drafts were not paid by Esenwein. The consignments during the period when the drafts were drawn were one hundred and sixty-two half, and one hundred and sixty whole boxes of tobacco. Esenwein’s entry of the consignment is, “ Statement of tobacco received by Charles Esenwein & Co. from Messrs. Martin & Franklin of Richmond, Virginia, to sell for their account.”

• The business relation between them in this transaction was that of principal and factor, unaffected by any particular instructions from the principals, or by any right or power acquired by the factor, beyond his general commission to sell the tobacco, according to the usages of trade in "the place to which it had been sent for sale.

In August, 1841, Esenwein became embarrassed and sailed for Europe. ' He left his business under the management of his clerk, Engelbert Caprano. On the 3d of September Esen *221 wein failed. Among his creditors was John A. Warner of Philadelphia. A short time before the failure, Mr. Warner, between whom and Esenwein there had been much previous dealing, went to New York. He then obtained from Caprano, the clerk, from the store of Esenwein, a quantity of tobacco, cigars, and other merchandise. The proof in the case is, that the tobacco was a part of the consignments which had been -made within the dates before mentioned by Martin & Franklin, to Esenwein. Warner says in his answer to the bill of the complainant, that the same was purchased by him for a full consideration and price, in like manner as he had frequently purchased from Esenwein; and that he did not know that the tobacco belonged to Martin & Franklin. But he admits, “.the insolvency of Esenwein was believed,” In his amended answer he says, he purchased the tobacco bona fide, in manner as-had been -before stated by him. That it was .paid for after the purchase, by his paying and adjusting thirty thousand dollars of his own notes, which he had loaned to Esenwein, by his paying' and redeeming them. Subsequently, in three days after Esenwein’s failure, Heald, Woodward, & Co. of Philadelphia bought from Warner two hundred and fifty-eight boxes of tobacco, known as Martin’s tobacco. The proof in- the ease is, that it was a part of that which Warner had obtained from Esenwein’s clerk, which had been consigned to Esenwein by Martin & Franklin, as already stated. They aver, and there is no reason qr cause to doubt it, that they purchased from Warner fairly,'and for full.value; that they had no knowledge whatever at the time, that the tobacco or any part of it belonged to the complainants; nor had they any reason to believe or know it. Their contract, however, with Warner, was rescinded in part. They received from him only one hundred and twenty-four boxes, instead' of the two hundred and fifty-eight which had been sold to them.

From some other dealing between Heald, Woodward, & Co. and Martin & Franklin, the-latter have drawn an inference of an agency of the former for them in this transaction. We think there was no such agency. At the same time we wall say, that there was an unbecoming and apprehensive reserve in their reply to the letter of Martin & Franklin, making inquiries concerning their tobacco, which Warner had’ received from the clerk of Esenwein, a part of which Heald, Woodward, & Co. had bought from Warner find was then in their possession. It was, however, not a concealment, from which it can. be inferred that Heald, Woodward, & Co. meant to commit either a legal- or moral fraud upon their correspondent. It appears that they, had nothing to do with the transfer of the *222 .tobacco to Warner, nor any other than a fair connection withhim in the sale of it by Warner to them.

From this statement, we have no doubt of the law of the case. It may be applied, too, without any imputation upon the integrity of either of the parties concerned. The defendants have misapprehended the principles which govern the rights of themselves and the plaintiff; but there is nothing in their proceedings which impairs mercantile character. They have been much mistaken, without meaning premeditated unfairness. If some temper had not been thrown info the case at first, there probably would not have been any charge of fraudulent intention. No one will be surprised from the proceedings in the cause, and the argument made upon it in this court, that its merits were lost sight of, in the effort made on the one side to establish fraud, and on the other to resist it.

Theexact questions raised by the record are, 'whether or wot the transfer of the tobacco to Warner divested the plaintiff’s ownership of it; and whether or not Warner’s sale -of a part of it to Heald,. Woodward, & Co., for a full consideration, without any knowledge upon their part of the plaintiff’s interest when they bought from Warner, gave -to them' a property in it.

Warner’s account of dealings with Esenwein we believe to be true. In his answer, however, he puts his right to retain the tobacco upon a footing not applicable to it. He says he bought without knowing that Martin & Franklin had any interest in the tobacco, and that he believed Esenwein was the owner. . His infe'rehce practically was, that he might therefore set off against the price his liability for the notes which he had lent to Esenwein as a debt due by Esenwein to him. This can only be done upon the principle that, where two persons equally innocent are prejudiced by the deceit of a third, the person who has put trust and confidence in the deceiver should be the loser. He discloses in his answér his knowledge of a fact which takes him out of any such relation to the plaintiff. It is his knowledge, at the time of the delivery of the tobacco to him, , of the failure of Esenwein.

• In all of those cases in which it has been ruled that the buyer who, at the time of the sale, knows nothing of the relation between the factor with whom he deals and the principal by whom that factor has been employed, is protected by the _ law, in case of .a misadventure occurring by the’default of the factor, it is admitted that the risk which a principal runs* through the inadvertence or misconduct of his agent, may be avoided, by the purchaser having notice, at any time before the completion of the purchase or delivery of the goods, of the *223 agent’s commission. Peake, 177.

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Bluebook (online)
52 U.S. 209, 13 L. Ed. 667, 11 How. 209, 1850 U.S. LEXIS 1504, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warner-v-martin-scotus-1851.