Bentley v. Snyder

• Decision Date: 27 January 1897
• Citation: 101 Iowa 1,69 N.W. 1023
• Parties: BENTLEY ET AL. v. SNYDER ET AL.
• Court: Iowa Supreme Court

101 Iowa 1

69 N.W. 1023

BENTLEY ET AL.

v.SNYDER ET AL.

Supreme Court of Iowa.

Jan. 27, 1897.

Appeal from district court, Fremont county; Walter I. Smith, Judge.

Action at law to recover from Snyder & Son and J. H. Snyder and L. F. Snyder the amount of a certain promissory note executed by them to plaintiffs on or about July 10, 1894. In a second count to the petition the plaintiffs alleged that the other defendants, in consideration of having received a stock of goods from Snyder & Son, promised and agreed to pay the note; and in a still further and third count to their petition they alleged, in substance, that Snyder & Son were agents and factors for the other defendants, having received certain goods from them for sale on commission, and that they continued to be such agents until August 23, 1894; that during the existence of such relation, and without notice or knowledge thereof, plaintiffs sold and delivered certain goods and merchandise, for which the note in suit was given; that at the time they sold their goods they believed that Snyder & Son were the owners of the stock of merchandise which was then in their possession, and were so informed by the defendant Joseph Samuels; that the goods so purchased went to the benefit of defendant Joseph Samuels; that Joseph Samuels, on or about the 29th day of August, 1894, took possession of the goods which he had intrusted to Snyder & Son, with all additions which had been made thereto, and that he has since disposed of the same, retaining the proceeds thereof; that, before disposing of the stock, Samuels had knowledge of the fact that plaintiffs' goods had been added to the stock while Snyder & Son held it. It is also alleged that in all these matters defendant Samuels was acting for and on behalf of the heirs of Giles Cowles, deceased, of which he was one, and the other defendants, save the Snyders, were the others. The plaintiffs prayed for judgment against all defendants for the amount of their account or note; that Samuels be required to render an account of all property coming into his hands from the Snyders; and that the cause be transferred to the equity docket for trial. The defendants Snyder & Son, and the Snyders individually, answered, and in their pleading practically admitted the claims made by plaintiffs. The other defendants filed a general denial. Plaintiffs' motion to transfer to the equity docket was overruled, and the case was submitted to a jury, resulting in a verdict and judgments for the defendants other than the Snyders, and for the plaintiffs against the Snyders for the amount of their note. Plaintiffs and Snyder & Son appeal. Affirmed.Ayres, Woodin & Ayres and W. E. Mitchell, for appellants Bentley & Olmstead.

G. B. Jennings, for appellants Snyder & Son.

Geo. E. Draper and C. S. Keenan, for appellees.

DEEMER, J.

Giles Cowles died, owning a certain stock of merchandise in the town of Riverton, Fremont county, Iowa. The defendant Joseph Samuels was appointed his executor, and as such, with the approval of the district court of Fremont county, he entered into the following contract with J. H. Snyder, L. F. Snyder, and J. E. Eubank: “This agreement witnesseth that Joe Samuels, administrator of Giles Cowles' estate, has sold or assigned on commission all the merchandise in building on lot No. 825, Riverton, Iowa, that belongs to Giles Cowles' estate, to J. H. and L. F. Snyder and J. E. Eubank. And this agreement further stipulates that when $4,000.00 has been paid to Joe Samuels, administrator, then said Joe Samuels, administrator, shall give to the said J. H. and L. F. Snyder and J. E. Eubank a bill of sale to all the property above described. There shall be paid to Joe Samuels, administrator, each month at least, a per cent. of sales. Should any part of the above-named $4,000.00 remain unpaid at the expiration of one year from date of this instrument, then shall bear 8 per cent. from August 25th, 1892, for a period not to exceed five years from that date. It is expressly stipulated and understood that the ownership of the merchandise above referred to, and all the additions thereto, shall remain in Joe Samuels, administrator, until the sum of $4,000.00 has been fully paid, with interest as above provided. Witness our signatures this 25th day of August, 1891. Joe Samuels, Administrator. J. H. Snyder. L. F. Snyder. J. E. Eubank.” The Snyders and Eubank took possession of the stock of goods under this contract, and continued to deal with the same as if they were the owners thereof until they surrendered it to Samuels in August, 1894. Eubank, however, withdrew from the business about 16 months after the contract was executed, and the Snyders thereafter conducted the same under the name and style of Snyder & Son. During the time they were in possession of the stock they purchased the goods for the price of which this action was brought. Before selling any of the goods to Snyder & Son, plaintiffs' traveling salesman called upon Samuels, with whom he was acquainted, and asked him regarding their financial standing. He says that at this time he knew that the Snyders had purchased the stock through Samuels, and that Samuels told him that they had bought it “on payments,” and that they owed considerable on the stock. “He also said that he thought the old gentleman was very conservative, and would pay for all the goods they needed, and...