Whitford v. Laidler

32 N.Y. Sup. Ct. 136
New York Supreme Court·Decided September 15, 1881·Published

Opinions

Learned, P. J.:

This action is on a sealed contract of lease. The plaintiff is the party of the first part. The defendants parties of the second part. In the lease the defendants are severally described as president, vice-presidents, secretary, treasurer and directors; being the Board of Managers of the Garrattsville Agricultural Society and Farmer’s Club.” This society and club was an association, not shown to have been incorporated. Of the thirteen persons named in the lease as parties of the second part, the lease is signed and sealed by only seven. The lease is to the parties of the second part and their successors in office, and is for the term of ten yeai’s.

The first point made by the defendants is that, on its face, the contract was with the association and not with the defendants individually. The defendants cited Hood v. Hallenbeck (14 Sup. C. N. Y., 362). The distinctions between that case and the present are several. That was an action on a promissory note, signed by five persons, describing themselves as trustees of St. Johns Lutheran Church. That church was a corporate body, and its corporate seal [140] was affixed. Whatever might have been the presumption of law in that case, it was proved, as a fact, that the note was given for a previous indebtedness of the corporation.

The case of Bellinger v. Bentley (8 Sup. C. N. Y., 562), was an action on an unsealed contract, made in the name of trustees of a cheese manufacturing company — a corporation. Proof was given ■of the authority of the trustees and of the plaintiff’s knowledge that the trustees were contracting not for themselves.

But, without examining other and early authorities,- it seems to us that recent decisions of the Court of Appeals have settled this ■question. In Kiersted v. O. and A. R. R. Co. (69 N. Y., 343) the plaintiffs, as lessors, and Smith, as lessee, executed -a lease under seal. The lease recited that Smith was the general agent for a certain route comprising the following railroads, naming the defendants. This fact also appeared extrinsically; and it also appeared that Smith had authority to negotiate for a lease for an office for their business, and that he occupied the premises for the purposes of his agency. The court said that the lease was signed and sealed in his individual capacity; that the form of the lease made him lessee; that the covenants could only be enforced against the party who on the face of the lease appeared to be covenantor, although in fact he acted for another. The court cite with approval Briggs v. Partridge (64 N. Y., 357) and the old ease of Taft v. Brewster (9 Johns., 334). In that case a bond, signed by persons describing themselves as trustees of a certain Baptist society, was held to be their individual bond. And, also, the case of Stone v. Wood (7 Cow., 452), where a charter party between Stone of the one part and Wood, as agent of J. & R. Raymond,” signed and sealed by said Stone and said Wood, was held to be the contract of Wood. Also the case of Guyon v. lewis (7 Wend., 26), which is very similar. These old cases are, therefore, approved in that recent case, notwithstanding that the doctrine as to instruments not under seal has probably been modified in the point under consideration. The case of Randall v. Van Vechten (19 Johns., 60), and similar cases, are explained in Briggs v. Partridge {ut supra) to be based on this principle, that where the sealed contract is, in form and in law, the agent’s, but the principal’s interest appears on the face and he has ratified it by acts in pais, and the contract would have been valid [141] without a seal, the principal may he liable in assumpsit on the promise contained in the instrument. Evidently that principle does not apply here. The question is here, not whether, under some possible proof, the association might not have been made liable, but whether, on the face of the contract, the signors are not liable themselves prima facie.

But, again, the learned judge did not hold that the contract was conclusive as to the defendant’s liability. After stating that, on its face, it was their contract, he submitted the question to the jury, on proof of the circumstances attending its execution, whether the parties executed it supposing it to be the contract of the association, and he charged that if they did so the defendants were not liable. The jury found for the plaintiff and, therefore, we have the fact that the parties, plaintiff and defendant, executed this contract, understanding that it bound the defendants individually. On such a finding the defendants would be liable, even if the contract had been unsealed.

Next, it was urged that the contract was executed upon a condition that it was not to be valid or operative until it should be signed by the other parties, whose names appear in the instrument, and that it was to be delivered to Kellogg, to be held by him until so signed, and then deposited in the town clerk’s office. This question the learned judge submitted to the jury on conflicting evidence.

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Whitford v. Laidler, 32 N.Y. Sup. Ct. 136 (N.Y. Super. Ct. 1881).

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