Williams v. Rogers

77 Ky. 776, 14 Bush 776, 1879 Ky. LEXIS 46
CourtCourt of Appeals of Kentucky
DecidedMay 20, 1879
StatusPublished
Cited by17 cases

This text of 77 Ky. 776 (Williams v. Rogers) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Rogers, 77 Ky. 776, 14 Bush 776, 1879 Ky. LEXIS 46 (Ky. Ct. App. 1879).

Opinion

JUDGE HINES

delivered the opinion of the court.

In April, 1867, the Savings Institution of Harrodsburg, incorporated and doing a general banking business, sold and transferred its assets to the private banking-house of E. Hutchison & Co., in consideration of which Hutchison & Co. assumed to pay all claims of depositors against the first-named [779]*779institution. At the time of the transfer of the assets of the Savings Institution to Hutchison & Co. appellee had on deposit in that institution $2,500, upon which it had been agreed he should receive six per cent per annum, to be added to the principal. This deposit, upon the terms mentioned, was transferred to the books of Hutchison & Co. with the addition of the interest then due. Subsequently the firm of Hutchison & Co., which was an ordinary partnership, issued a card to the public over the names of the members of the firm, among which was the name of appellant, setting forth the terms of the transfer, and giving assurance to depositors that their demands against the Savings Institution would be met. After the publication of the card above mentioned, another publication was made by the firm of Hutchison & Co. to the same effect, in which the name of appellant did not appear. Several members of the firm died and one withdrew, but no notice of this publication or of the death of any of the members was brought to the knowledge of appellee until the death of E. Hutchison, which occurred April 30, 1871. The business continued to be conducted under the firm-name, and on the first of January, 1872, the president or business manager indorsed on the pass-book that the firm had given appellee, that he was to receive ten per cent per annum on his deposit. In August, 1874, appellee brought this action against the members of the firm to recover the principal and interest at six per cent up to January, 1872, and for ten per cent from that time forward.

Some of the defendants filed answers, putting in issue the material allegations of the petition, but, appellant making default, judgment was rendered against him, from which he appealed to this court and secured a reversal, January 30, 1875, upon the ground that the answer of one of his co-defendants presented a defense available for each, member of the firm of Hutchison & Co., which rendered it erroneous to enter judg[780]*780ment against appellant before disposing of the issue thus formed. (Rouse v. Howard, 1 Duv. 31.)

The judgment thus' appealed from, as in the case on the present appeal, ignored the claim for ten per cent under the indorsement of January 1, 1872, and allowed interest at six per cent as originally contracted for.

On the return of the case to the court below appellant filed an answer denying all the material allegations of the petition, and made certain affirmative averments that will hereafter be referred to. On the hearing judgment was entered against appellant for the amount of the original deposit with six per cent interest, according to the terms of the original contract between the Savings Institution and Hutchison & Co.

On this appeal appellant complains:

First. That the petition is defective and will not support a recovery, because it is not alleged that the assumption by Hutchison & Co. of the liabilities of the Savings Institution was in writing, and that the contract is therefore within the statute of frauds.

Second. That as trustee for his son he is not personally liable.

Third. That the failure to take judgment against other defendants, members of the partnership, who were before the court, is error.

Fourth. That the agreement to pay ten per cent after the dissolution of the firm by the death of some of its members and the withdrawal of others, operated as a novation and release of appellant on the original contract to pay six per cent.

It is not questioned, that in the absence of an allegation in the petition that the contract between the Savings Institution and Hutchison & Co. was in writing, the presumption will be entertained that it was oral, and will be so treated in construing the pleadings. There are two reasons why this is [781]*781immaterial here: first, it is not such a contract as the statute requires to be reduced to writing; and second, the question of the sufficiency of the petition can not now be inquired into. As this matter was necessarily passed upon on the first appeal, although not adverted to in the opinion, appellant is precluded from again raising the question. (Davis v. McCorkle, ante 746.) The agreement of Hutchison & Co., for a valuable consideration, to pay the depositors of the Savings Institution, is not a promise to answer for the debt of another. The statute relied upon applies to promises made to the person to whom another is already or is to become responsible, and not to promises made to the debtor. (North v. Robinson, 1 Duv. 71.)

As to the second objection indicated to the judgment below, it is sufficient to say, that the conduct of appellant, in holding himself out to the public as individually liable, operates as an estoppel, and renders it unnecessary to consider whether he would be liable if treated as a trustee. Between himself and his associates in business another question would arise, and the private understanding insisted upon to release him would be a legitimate subject of inquiry, but here it is the contract made with appellee by his publication that determines whether he shall be held as a trustee or as an individual. That appellant was a member of the firm of Hutchison & Co., either individually or as trustee for his son, is admitted. The character of his relation to the firm was a legal issue, the finding upon which can not be disturbed unless it is flagrantly against the weight of evidence. (Judge, &c. v. Braswell, 13 Bush, 67.)

A card was issued by the firm, containing the names of the members, among which was that of appellant, setting forth substantially the contract with the Savings Institution. Some such card was exhibited to appellee by Hutchison & Co., and the names of the members of the company read to him. The [782]*782evidence was sufficient to authorize the court to find, first, that appellant was, in his individual capacity, a member of the firm, and that it so appeared to appellee when he consented to look to Hutchison & Co. for his deposit; second, that the card exhibited to appellee was the card to which the name of appellant appeared; third, that appellee, up to the death of E. Hutchison, had no actual notice of any dissolution of the firm. It is true that appellant says that he never signed, or authorized any one to sign the card for him, but admits that he knew of its publication, and did not disavow it. Such a ratification is tantamount to original execution.

The additional facts material to be considered, and bearing upon the third objection indicated to the judgment below, are that no judgment was rendered against C. A. Hardin, who failed to answer, and that the petition against three others who made defense was dismissed. In the judgment no reference is in any way made to the defendant Hardin.

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Bluebook (online)
77 Ky. 776, 14 Bush 776, 1879 Ky. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-rogers-kyctapp-1879.