Wetmore & Morse Granite Co. v. Ryle

107 A. 109, 93 Vt. 245, 1919 Vt. LEXIS 157
CourtSupreme Court of Vermont
DecidedMay 6, 1919
StatusPublished
Cited by10 cases

This text of 107 A. 109 (Wetmore & Morse Granite Co. v. Ryle) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wetmore & Morse Granite Co. v. Ryle, 107 A. 109, 93 Vt. 245, 1919 Vt. LEXIS 157 (Vt. 1919).

Opinion

Watson, C. J.

The promissory note on which this action is based, was made and delivered prior to June 1, 1913, and is therefore not affected by the provisions of the Negotiable Instrument statute. G-. L. 3059.

Defendant Ryle testified in defence that she signed the note in suit as surety for her husband, and not otherwise. In rebuttal exception was taken to the admission of evidence showing [251]*251the consideration of this note to have been the taking np of two former notes, it being claimed that she was entitled to see those two notes, which it appeared were not in plaintiff’s possession, nor their whereabouts known to it. There was no error in the ruling. The evidence had a bearing on the question of her relation to the note in question, and on the capacity in which she signed it. The two notes mentioned were collateral to the question at issue, and it was not necessary to produce them. Rutland & B. R. R. Co. v. Thrall, 35 Vt. 536; Street v. Nelson, 67 Ala. 504; New Jersey Zinc & Iron Co. v. Lehigh Zinc, etc. Co., 59 N. J. Law 189, 35 Atl. 915.

Plaintiff was permitted to show by parol, subject to exception as not the best evidence, that those two prior notes were signed by the Ryle-MeCormick Company, and neither of them had other signers. This went to the extent of showing that such notes were made, as distinct from their terms or provisions. In these circumstances the best evidence rule has no application. Parol evidence is admissible. Holyoke v. Hadley Water Power Co., 174 Mass, 424, 54 N. E. 889.

Exceptions 1 to 8, inclusive, to certain findings of fact, as immaterial and irrelevant, are of no moment in the disposition of the case; for the rights under such exceptions are fully protected by exception to the judgment, which must necessarily be based on the material and relevant facts, only.

Exception was taken to the finding that defendant Ryle never received directly anything of benefit or value for placing her name on the note in suit, except such as she may have received as a stockholder and director. It is argued that this implies that she may have received some benefit or value indirectly as a stockholder and director, although it is found that she never received any dividend on her stock and received nothing on the winding up of the company’s affairs. With the two facts last stated expressly found, it is not clear how there can be an implied finding conflicting therewith. It is further argued that as to whether the directors, as such, received anything from the company, there was no evidence. If the directors received anything, the presumption is that it was only by way of compensation for services rendered. There is no presumption that they received more, thereby acting fraudulently. Whether they did or did not receive compensation for their official services is of no importance.

[252]*252The question whether Mrs. Ryle received any consideration for signing the note in suit, is quite another thing, and was material in determining her true relation to the note and to the other signers. First Nat. Bank v. Bertoli, 87 Vt. 297, 89 Atl. 359, S. C. 88 Vt. 421, 92 Atl. 970. Relying on the authority of the case here cited, it is urged that the test of her relation to the transaction is, whether she received in person or in benefit to her estate, the consideration' on which the note is based. This is so only when the question is: Which of the two relations does she bear, that of principal, or that of surety? It can be no test when, as here, the question is: For which of two or more other signers on the note or other obligation did she in fact become surety? In such a case there is no difference in the nature of the engagement. It is to answer to the debt or default of another. This was a fact to be determined by the trial court on the evidence. Thereon the record states that in consideration of the testimony in the case, and the circumstances, the court fails to find that defendant Ryle signed her name on the note as surety for her husband, but does find that she and defendant Brown signed it as sureties for the company, and are liable as makers so far as the plaintiff is concerned.

It is urged by the plaintiff that it had no knowledge or information, at the time of taking the note in suit, that Mrs. Ryle’s relation to the note was different from that of its purport on the note itself, and so, as to the plaintiff, she became liable as a joint maker with the Ryle-MeCormiek Company. This claim entirely excludes the law permitting her, the plaintiff’s freedom from such knowledge or information notwithstanding, to show that in fact she signed as surety for her husband and not otherwise, and therefore as against her there is no contract. G. L. 3523; Bradley Fertilizer Co. v. Caswell, 65 Vt. 231, 26 Atl. 956.

As the case is presented, the crucial question is, whether there was evidence on which the finding that she signed as surety for the company, could properly be made. If she signed as surety for the Ryle-McCormick Company, her undertaking was a lawful one which she was competent to enter into. If she signed as surety for her husband only, her undertaking was without her power and absolutely void. In these circumstances the presumption is that she acted within the general contractual powers conferred by statute upon married women; and since she claimed that, her obligation was only as surety for her husband, and so [253]*253within the exception to the general powers thus granted, the burden was with her to show it. This is the general rule of construction when a party claims to be within the exception to a statute, rather than within its general provisions and it was in effect so considered in connection with the statute granting such general powers to married women, in Seaver v. Lang, 92 Vt. 501, 104 Atl. 877. The rule seems to be the same in other jurisdictions when applied to similar statutes enabling married women to contract generally, but containing a clause excepting some particular class of undertakings. Reeves v. Morgan, 48 N. J. Eq. 415, 21 Atl. 1040; Pulliam v. Hicks, 132 Ala. 134, 31 South. 456; Lunsford v. Harrison, 131 Ala. 263, 31 South. 24; Bley v. Lewis, 188 Ala. 535, 66 South. 454; Guy v. Liberenz, 160 Ind. 524, 65 N. E. 186; Miller v. Shields, 124 Ind. 166, 24 N. E. 670, 8 L. R. A. 406; Christensen v. Wells, 52 S. C. 497, 30 S. E. 611; Miller v. Hilton, 189 Mich. 635, 155 N. W. 574; Bank v. Poore, 231 Pa. 362, 80 Atl. 525; Farmers’ and Merchants’ Bank v. Donnelly, 247 Pa. 518, 93 Atl. 761.

By signing her name on the back of the note in blank, Mrs. Ryle became prima facie liable as maker, Bank v. Dorset Marble Co., 61 Vt. 106, 17 Atl. 42, 2 L. R. A. 428; Ballard v. Burton, 64 Vt. 387, 24 Atl. 769, 16 L. R. A. 664. And though her name appears there with that of her husband the presumption is the same. Longnecker v. Bondurant, 173 Ky. 427, 191 S. W. 286; Pulliam v. Hicks, cited above.

It is unnecessary to refer specifically to the evidence in detail. We have examined it all very carefully on the question of this finding, and are satisfied, in view of the presumptions mentioned above, that the finding was warranted. The fact that there was, perhaps, what seems to be strong evidence the other way, does not avail.

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Bluebook (online)
107 A. 109, 93 Vt. 245, 1919 Vt. LEXIS 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wetmore-morse-granite-co-v-ryle-vt-1919.