Clark Executors v. Van Riemsdyk

• Decision Date: 22 February 1815
• Citation: 9 Cranch 153,3 L.Ed. 688,13 U.S. 153
• Parties: CLARK'S EXECUTORS v. VAN RIEMSDYK
• Court: U.S. Supreme Court

13 U.S. 153

9 Cranch 153

3 L.Ed. 688

CLARK'S EXECUTORS v. VAN RIEMSDYK.

Feb. 22, 1815

Absent. TODD, J.

THIS cause was this day argued by BURGESS and STOCKTON, for

the Appellants

, and HARPER, for the Appellee, in the absence of

the reporter.

[154]

February 28th. Absent. TODD, J.

djQ MARSHALL, Ch. J. delivered the opinion of the Court as

follows:

This is an appeal from a decree made in the Circuit Court of the United States for the district of Rhode Island.

The Appellee filed his bill in that Court, praying that the Appellants and James Munro, Samuel Snow, and Benjamin Munro, late merchants trading under the firm of Munro, Snow and Munro, might be decreed to pay him the amount of a bill of exchange drawn in his favor at Batavia, by Benjamin Munro, at nine months sight, on Messrs. Daniel Crommelin and sons, merchants, Amsterdam, for the sum of 21,488 guilders on account of advances made by the said Riemsdyk for the use of the Defendants in the Circuit Court.

In the year 1805, John Innes Clark and Munro, Snow and Munro, being joint owners of the ship Patterson in equal moieties, projected a voyage to Batavia, and appointed Benjamin Munro, one of the house of Munro, Snow and Munro, supercargo. The ship carried out some goods on account of the owners, and other goods on account of different persons, the whole to be invested in a return cargo, on the profits of which the ship owners were to receive 45 per cent. instead of freight.

The bill charges that the supercargo was empowered verbally, in case of a deficiency of funds at Batavia, to load the ship with a return cargo, to take up money on the joint account of the owners, and, if necessary, to draw bills of exchange therefor on Messrs. Daniel Crommelin and sons, of Amsterdam, or on the owners.

The Patterson returned in the spring of 1806, with a cargo derived from the funds taken out in the outward voyage.

In March, 1806, the Patterson again sailed to Batavia on a voyage in all respects similar to the first. That part of the cargo which was furnished by the owners Consisted of wines and some other inconsiderable articles. Being unable to sell the wine in Batavia, the supercarge placed it for sale in the hands of Mr. Van Riemsdyk, the Defendant in error. Rather than return without filling the vessel for the owners, he drew bills on them to the amount of $2,389 89; and also drew on Messrs. Crommelin and sons, merchants of Amsterdam, the bill for which this suit was brought. The bill is drawn by Benjamin Munro in his own name, but it contains a direction to charge the same to John Innes Clark and Munro, Snow and Munro, merchants of Providence, Rhode Island, North America. Of all these proceedings the owners were regularly informed by letter from Benjamin Munro, their supercargo.

The ship returned safe in March, 1807, and the proceeds of the cargo purchased by these bills were received by the owners. The bills drawn on the owners were duly paid; but no provision was made for that drawn on Daniel Crommelin and sons.

In May, 1807, the ship proceeded on a third voyage to Batavia with Benjamin Munro again supercargo. The owners appear to have relied on the wine placed in the hands of Van Riemsdyk on the second voyage, for producing the funds with which to procure their part of the return cargo. In June, 1807, Munro, Snow and Munro became insolvent; and, according to the laws of Rhode Island, obtained a certificate discharging them from the claims of their creditors, so far as such discharge could be affected by a law of the state. They had previously transferred, for a valuable consideration, to John Innes Clark, all their interest in the ship, the return cargo and the accruing freight, the whole of which came into his possession on the return of the vessel. In December, 1807, the bill was presented to Messrs. Daniel Crommelin and sons, and protested for non-acceptance; and in October, 1808, it was protested for non-payment. Neither Clark nor Munro, Snow and Munro had any funds in the hands of Messrs. Daniel Crommelin and sons.

John Innes Clark departed this life in November, 1808, having first made his last will and testament, of which the Plaintiffs in error are executors, who have assets in their hands more than sufficient to satisfy the claim of Van Riemsdyk.

The Defendants, Munro, Snow and Munro, in their answer, acknowledge all the material allegations of the bill, and expressly admit the authority of Benjamin Munro to draw the bill of exchange for which this suit was instituted. But they state their insolvency; and claim the benefit of the certificate of discharge granted them in pursuance of the laws of the state of Rhode Island.

Clark's executors deny that Benjamin Munro had any authority to take up money on credit for any purpose whatever, or to draw bills of exchange; and assert that both the Complainant and Benjamin Munro know that he had no such authority. They admit that if the money was taken up, it was for the joint use of the ship owners, but not on their credit. It was, they say, on the sole credit of Benjamin Munro.

At the hearing, the bill was dismissed as to Munro Snow and Munro, and a decree was made against Clark's executors for the sum of $11,526 14, being the amount of the sum specified in the bill of exchange in the Complainant's bill specified, together with ten per cent. damages for the non-payment thereof, and interest upon both these sums, from the time when the said bill of exchange became due to the time of rendering the decree.

From this decree the executors of the said John Innes Clark prayed an appeal to this Court.

In determining the extent of Clark's liability, the authority of Benjamin Munro to draw this bill becomes a question of material importance. If the answer of Munro, Snow and Munro, or their depositions taken in the cause, be admissable evidence against Clark's executors, this question is decided. But the admissibility of their answer, for this purpose depends on the establishment of such a partnership as would authorize the draft of Munro as one of the partners; and the admissibility of their depositions depends on their being rendered disinterested witnesses by the certificate of discharge stated in the proceedings. The Court, being satisfied on neither of these points, will exclude both the answer and deposititions, and consider the cause independently of them.

The letter of Benjamin Munro, written at Batavia, on the 3d of November, 1806, the day on which the bill in favor of Van Riemsdyk was drawn, and addressed to John Innes Clark, esquire, and to Messrs. Munro, Snow and Munro, contains these passages—'I have shipped on board the Patterson, on your account and risk, 505 Pecols Jacatia coffee, agreeably to invoice and bill of lading inclosed. I have drawn on you for the amount of $2,389 89, at ninety days sight, in favor of the several officers, &c. on board the Patterson, being the amount of money they had remaining over their priviliges, and which I have allowed them 15 per cent. advance thereon, and which drafts you will please to honor. A statement thereof I annex. I have also drawn on Messrs. Daniel Crommelin and sons, merchants, Amsterdam, at nine months sight, in favor of the honorable William V. H. Van Riemsdyk of this place for the amount of 21,488 guilders on account of the Patterson, and which bills you will, no doubt, prepare for timely, as I have written those gentlemen.' I leave all the Maderia wine in the hands of the honorable Mr. Reimsdyk, as it will not sell at all, I transmit his receipt for the same. I have received no advance on the wine.'

To this letter was annexed a statement of the cargo of the Patterson, containing this item—'For owners of Patterson, 505 Pecols coffee.'

There was, also the following memorandum:

'Memorandum of bills payable by you at ninety days sight, viz:

'Captain James Shaw, 1st, 2d, 3d, exchange, $748 75, &c. amounting in the whole to $2,389 89.

'Amount of bills drawn on Messrs. Daniel Crommelin and sons, merchants, Amsterdam, payable by them at nine months sight, in favor of the honorable Wm. V. H. Van Riemsdyk, viz:

'Four bills of exchange, 1st, 2d, 3d, 4th, for the amount of 21,488 guilders, equal to $8,595. I have allowed Mr. Riemsdyk on the money, 20 per cent. advance.'

It is impossible to read this letter and these memoranda without feeling a conviction that Benjamin Munro believed himself to be acting within the scope of his authority, and supposed that neither his bills on the owners, nor that on Crommelin and sons, would be considered by them as an extraordinary or unexpected transaction. He makes no apology for what had been done; gives no description of his difficulties and embarrassments at being disappointed in Batavia by not receiving the funds on which he relied for their return cargo, and of his doubts whether the measure to which he had resorted in consequence of that disappointment, would be approved by them. His language is the language of an agent acting within his powers on a contingency which had been foreseen and provided for. Having stated the bills drawn on them, he adds, in the usual style of letters of notice, 'which drafts you will 'please to honor.' After stating the drafts on Crommelin and sons, he adds, 'which bills you will no doubt 'prepare for timely, as I have written those gentlemen.' This is not the language of an agent conscious of having transcended his powers.

But it will be admitted that the opinion of the agent on the extent of his powers will not bind his principals. Let us, then enquire, so far as the testimony will inform us, into the opinion entertained on this point by the principals themselves.

On the 1st of November, 1806, at Batavia, Benjamin Munro stated an account current between himself and the owners of the...