Wisconsin Marine & Fire Insurance Co. Bank v. Wilkin

69 N.W. 354, 95 Wis. 111, 1897 Wisc. LEXIS 154
CourtWisconsin Supreme Court
DecidedFebruary 2, 1897
StatusPublished
Cited by47 cases

This text of 69 N.W. 354 (Wisconsin Marine & Fire Insurance Co. Bank v. Wilkin) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wisconsin Marine & Fire Insurance Co. Bank v. Wilkin, 69 N.W. 354, 95 Wis. 111, 1897 Wisc. LEXIS 154 (Wis. 1897).

Opinion

The following opinion was filed December 15, 1896:

Maeshall, J.

This case turns on the construction of the contract of guaranty. The learned trial judge held that, by the terms of the contract, there was created a several, not a joint, liability; that each of the defendants who signed as guarantor became liable only for such portion of the indebtedness of the Wilkin Manufacturing Company as the amount of stock held by him in such company, at the date of the contract, bore to the whole amount of capital then paid in to said company. It is claimed on the part of plaintiff that the contract is a joint and several obligation; that each of the signers is liable to the plaintiff for the whole indebtedness of their principal; and that the last clause of the agreement, which the defendants contend limits the liability of each of the guarantors to the proportion of the debts of the manufacturing company which such guarantor’s stock, at the date of the contract, bore to the total paid-up stock of the [115]*115corporation, has no other effect than to furnish a rule for contribution between the several guarantors. . Considerable evidence was received, under objection, respecting the transactions leading up to the signing of the contract, and numerous errors are assigned on the rulings of the court in that regard; but the view we take of the case renders it unnecessary to consider such alleged errors.

The rules that govern the judicial construction of contracts, rightly understood and properly applied, will leave no reasonable doubt respecting the legal effect of the one in question. It must be borne in mind that the office of judicial construction is not to make contracts or to reform them, but to determine what the parties contracted to do; not necessarily what they intended to agree to, but what, in a legal sense, they did agree to, as evidenced by the language they saw fit to use. If the meaning of the language is ambiguous, the construction may be aided by resort to proof of the situation of the parties, their acts, and of the subject matter. Nilson v. Morse, 52 Wis. 240; Sigerson v. Cushing, 14 Wis. 527. It is said that the intention of the parties is to be sought for in the instrument itself, and that particular words and sentences must be construed so as to subserve such intention (Weiseger v. Wheeler, 14 Wis. 101; Johnson v. N. W. Nat. Ins. Co. 39 Wis. 87); but that must be taken in connection with the proviso that no intention, however manifest, can be effectuated unless it is consistent with a meaning that may reasonably be attributed to the language of the contract. So, after all, judicial construction comes down to this: What did the parties mean by the language they used? Weiseger v. Wheeler, supra; Johnson v. N. W. Nat. Ins. Co. supra; T. B. Scott L. Co. v. Hafner-Lothman Mfg. Co. 91 Wis. 667; Jacobs v. Spalding, 71 Wis. 177; Braun v. Wis. Rendering Co. 92 Wis. 245; Gibbons v. Grinsel, 79 Wis. 365. Nevertheless, while what the parties themselves meant is a test, it is not the only test of what a con[116]*116tract is in legal effect, for there is a limit, as indicated, beyond which the courts cannot go in that regard, expressed by standard text writers, and substantially all judicial authority, in the language of Parsons on Contracts (volume 2, p. 494), as follows: Courts cannot adopt a construction of any legal instrument which shall do violence to the rules of language or the rules of law.” Parkhurst v. Smith, Willes, 832. “ If we go beyond this,” says Chief Baron Eyee, in Gibson v. Minet, 1 H. Bl. 569, “ we no longer construe men’s deeds, but we make deeds for them.” In short, that meaning cannot be given to a contract which cannot be reasonably drawn from its language, for the purpose of carrying out the intention of the parties thereto, however clearly established. It follows from the foregoing that, if a contract is so worded that it cannot be construed so as to carry out fully the intention of the parties, a court of law is powerless to do more than to enforce it so far as possible, within the principles indicated. Stating the rule in the language of Parsons on Contracts (volume 2, p. 494): “ The rules of judicial construction do not require that the court should always construe a contract to mean what the parties meant, but that it should give to the contract such construction as will bring it as near the actual meaning of the parties, as the words they saw fit to employ, when properly construed, and the rules of law, will permit.” There is another familiar rule that should be observed in the construction of this contract. That is that effect should be given, if possible, to all its parts. To that end, no part of the agreement should be rejected as void for uncertainty, or otherwise, if it will admit of any reasonable construction so as to sustain it as an essential part of the contract.

It is only left in this case to apply the foregoing principles. The first clause of the agreement contains the following: “We and each of us do hereby agree upon demand to pay, or cause to be paid, to said Wisconsin Marine & Fire [117]*117Insurance Compcmy Bank,, all loans . . . and liabilities, of every kind and description, now owing, or which may hereafter become due or owing, by said Wilkin Manufacturing Company to said Wisconsin Marine <& Fire Insurance Company Bank! It cannot be, and is not, contended but that this language, by itself, constitutes a plain joint and several obligation. The rules for judicial construction cannot be properly resorted to, to vary or explain such language so as to mean anything else, for the words are not susceptible of any other meaning. The learned trial court, in effect, destroyed this plain agreement, by bolding that it was controlled or modified by the last clause, providing that the signers should pay in the proportion which their several holdings of stock bore to the total paid-up stock of the company at the date of the contract. That, clearly, violated the rule that effect should be given, if possible, to every part of the contract, as it let out Wilkin and Morris entirely, they not being stockholders at the time of the execution of the agreement, notwithstanding they severally agreed to pay all the liabilities of their principal. It violated the rule that effect cannot be given to the intention of the parties which violates the rules of language. It destroyed the effect of the plain, absolute agreement for joint and several liability of the signers for all the indebtedness, made in the first part of the agreement. Looking to the steps which led up to the making of the contract, the court came to the conclusion that the parties intended to incur a several liability proportionate to their respective holdings of stock, as compared with the whole paid-up stock of the principal, and gave effect to that intention, by violating the rule that courts can only go to the extent of giving effect to the intention, so far as to bring the contract as near thereto as the language contained therein, when properly construed, and the rules of law will permit. Lastly, the court overlooked the rule that, when two clauses of'a contract are in [118]*118conflict, the first governs, rather than the last. Green Bay & M. C. Co. v. Hewitt, 55 Wis. 96; 2 Pars. Cont. 513; Hartung v. Witte, 59 Wis. 285, cited by appellant’s counsel. This is based on a very long and well-established rule stated by Blackstone (in book 2, Comm.

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Cite This Page — Counsel Stack

Bluebook (online)
69 N.W. 354, 95 Wis. 111, 1897 Wisc. LEXIS 154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wisconsin-marine-fire-insurance-co-bank-v-wilkin-wis-1897.