Curran v. Rummell

• Decision Date: 02 October 1875
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court
• Parties: Hugh M. Curran & others v. Frank H. Rummell

118 Mass. 482

Hugh M. Curran & others v. Frank H. Rummell

Supreme Court of Massachusetts

October 2, 1875

Hampshire. Contract upon a promissory note for $ 137.43, dated Florence Massachusetts, April 18, 1872, signed by the defendant and payable to Curran, Fay & Co., the plaintiffs, three months after date. The declaration also contained a second count upon an account annexed for $ 38. The case was submitted to the Superior Court, and, after judgment for the defendant, to this court, on appeal, on an agreed statement of facts in substance as follows:

The plaintiffs may recover on both counts of their declaration which correctly state the sums in which the defendant was indebted to the plaintiffs, unless the facts hereinafter stated bar their right.

Some time in 1872, H. H. Bond, one of the defendant's counsel called on the plaintiffs at their place of business in New York, and informed them of the defendant's insolvency that one Littlefield and one Ranney held a valid mortgage on all of the defendant's property, and that Littlefield would advance and pay twenty-five per cent. to settle the defendant's debt. The plaintiffs declined this offer. Afterwards, in December, 1872, the same offer was made by Mr. Bond to the counsel of the plaintiffs, this claim then being in their hands for collection, who submitted the proposition to the plaintiffs, but they declined it, and directed that the claim be put in judgment; of this Mr. Bond was immediately informed, and suit was thereupon brought.

Subsequently the mortgagees consented to a conveyance by the defendant of his property to one Burr, for the purpose of distribution of the proceeds pro rata among the defendant's creditors including themselves, in settlement of the defendant's debts. All the creditors, including the plaintiffs, were notified by letter of this conveyance to Burr, but not of its terms and conditions. The property was fairly disposed of, and notes in payment taken to the order of Mr. Bond, who obtained the money on them by indorsing them, and distributed the proceeds in good faith. Of these acts the plaintiffs had no notice, and the only subsequent communication was the following letter, dated Florence, July 3, 1873, addressed to the plaintiffs, and signed "H. H. Bond": "Gentlemen: In the matter of the Rummell estate, we are getting it into such shape that we can see the end now. It will pay a dividend of nineteen cents on a dollar. As I suppose you would like to close it, I inclose my check for $ 11.89 in...