Blake v. Atl. Nat. Bank

Decision Date04 March 1912
Citation82 A. 225,33 R.I. 464
PartiesBLAKE v. ATLANTIC NAT. BANK.
CourtRhode Island Supreme Court

Exceptions from Superior Court, Providence and Bristol Counties; Willard B. Tanner, Presiding Justice.

Action by Charles E. Blake, trustee in bankruptcy of N. Curtis Fletcher & Co., a copartnership, against the Atlantic National Bank. From the decision of the presiding justice, defendant brings exceptions. Cause transmitted to superior court, with directions.

See, also, 80 A. 181.

Gardner, Pirce & Thornley (Charles R. Haslam, of counsel), for plaintiff.

John S. Murdock and Percy W. Gardner, for defendant.

SWEETLAND, J. This is an action in assumpsit, brought by Charles E. Blake, trustee in bankruptcy of N. Curtis Fletcher & Co., a copartnership composed of N. Curtis Fletcher and William R. Potter, against the Atlantic National Bank. The case was tried before a justice of the superior court sitting without a jury. The case is now before this court upon the defendant's exception to the decision in favor of the plaintiff.

In September, 1907, the said N. Curtis Fletcher signed his own name to an underwriting agreement as to certain bonds of the United Illuminating Company. Other persons also signed this agreement. By the terms of the agreement each person signing became obligated to the Atlantic National Bank for the amount set opposite his name in consideration of a loan made by the bank to the nominee of the underwriters. The amount set opposite the name of N. Curtis Fletcher was $1,700. By the testimony of Mr. Fletcher he signed the underwriting agreement in behalf of the copartnership. In the early part of November, 1907, Mr. Potter was considering a dissolution of the firm; and Mr. Fletcher demanded from him that he should sign an acknowledgment that the obligation on the underwriting agreement, arising from the signature of Mr. Fletcher, was a firm obligation. Mr. Potter testified that up to that time he had understood that the underwriting agreement was an individual transaction of Mr. Fletcher. After considerable controversy between the partners, Mr. Potter signed the acknowledgment, which was dated as of the date of the underwriting agreement. In this written acknowledgment Mr. Potter agreed that the signature of Mr. Fletcher upon the underwriting agreement "shall be and is hereby assumed by N. Curtis Fletcher & Co." The said partnership was not dissolved at that time.

On January 28, 1908, N. Curtis Fletcher & Co., obtained a loan from the Atlantic National Bank, the defendant, and gave to said bank the firm's promissory note for $5,800, payable on demand. The firm deposited and pledged with the bank as collateral security for the payment of said note certain shares and a bond of the United States Steel Corporation. In said note the copartnership gave to the bank authority to sell the collateral security at public or private sale on nonpayment of the note, to apply the net proceeds of such sale to the payment of the note, and also to apply the surplus of such net proceeds after payment of said note to the payment of any other note or claim against said firm held by the bank. On February 7, 1908, said copartnership was adjudged bankrupt, and the plaintiff was appointed the trustee in bankruptcy of said copartnership. After the bankruptcy the defendant was informed by Mr. Fletcher that the underwriting obligation arising from his signature upon the underwriting agreement was a firm obligation, and the defendant also received from Mr. Fletcher a copy of the abovementioned written acknowledgment of Mr. Potter.

After the bankruptcy of the copartnership the defendant sold said collateral security, and from the net proceeds of the sale satisfied the indebtedness upon said note for $5,800, and also satisfied the obligation of $1,700 upon the underwriting agreement. The plaintiff protested against the action of the bank in treating said claim for $1,700 as firm indebtedness, and has brought this action to recover the balance of the net proceeds of the sale of said collateral security remaining after the payment of the note of $5,800 and interest thereon. The plaintiff claims that the indebtedness of $1,700 in question was originally the individual obligation of Mr. Fletcher, and that the paper signed by Mr. Potter in November 1907, is, at most, merely evidence of an assumption by the firm of that individual indebtedness of a partner. This was the finding of the justice of the superior court. The defendant urges, that, even if this is the conclusion properly to be drawn from the testimony, and although the defendant was not aware of the assumption by the firm of the partner's individual obligation until after the bankruptcy of the firm, and hence its assent must have been given after the bankruptcy, still the assent, when it was given, would make the bank a creditor of the firm from the time of the assumption, and the bank would be entitled to apply the balance of the proceeds of the sale of said collateral security in satisfaction of this claim of...

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16 cases
  • In re Estate of Thomasson, 36823.
    • United States
    • United States State Supreme Court of Missouri
    • April 5, 1943
    ...Co., 202 Mo. l.c. 470; Rogers v. Gosnell, 58 Mo. 589; Stone v. Walker, 77 So. 554, 1918C, L.R.A. 844; Blake v. Atlantic Natl. Bank, 33 R.I. 464, 82 Atl. 228, 39 L.R.A. (N.S.) 876; Prater v. Rush, 74 S.W. (2d) 875; Marden v. Radfouri, 84 S.W. (2d) 947; St. Louis v. Von Phul, 133 Mo. 561. (e)......
  • In re Thomasson's Estate
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    • United States State Supreme Court of Missouri
    • April 5, 1943
    ......Young and P. H. Cullen, Respondents, v. The Boatmen's National Bank of St. Louis, Executor of the Estate of Hugh W. Thomasson, deceased, ...589; Stone v. Walker, 77 So. 554, 1918C, L. R. A. 844; Blake v. Atlantic Natl. Bank, 33 R. I. 464, 82 A. 228, 39 L. R. A. (N. S.) ...That, also, may be tentatively conceded,. though see St. Louis Nat"'l Bank v. Field, 156. Mo. 306, 310-11, 56 S.W. 1095, 1096. . .   \xC2"......
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  • Lawrence Nat. Bank v. Rice, 1254.
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    ...third person acquires no rights under contract until by statement or act he indicates his assent thereto. Blake v. Atlantic Nat. Bank, 33 R.I. 464, 82 A. 225, 39 L.R.A.(N.S.) 874; Johnson v. Central Trust Co., 159 Ind. 605, 65 N.E. 1028; Spalding v. Henshaw, 80 Ky. 55, 44 Am.Rep. 463; Jones......
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