Dreyer v. Sander
Decision Date | 31 October 1871 |
Parties | G. W. DREYER, Appellant, v. ENNO SANDER et al., Respondents. |
Court | Missouri Supreme Court |
48 Mo. 400
G. W. DREYER, Appellant,
v.ENNO SANDER et al., Respondents.
Supreme Court of Missouri.
October Term, 1871.
Appeal from St. Louis Circuit Court.
Hendershot & Chandler, for appellant.
Slayback & Haeussler, for respondents.
CURRIER, Judge, delivered the opinion of the court.
The plaintiff indorsed a note drawn by Enno Sander for $2,500. The note went to protest, and the plaintiff was obliged to take it up, and did so. He now seeks to reimburse himself by a recovery against Enno Sander & Company, as for money paid, laid out and expended for the use and benefit of that firm. Such recovery is sought upon the ground that the note, as the plaintiff avers, was drawn, indorsed and negotiated for the firm's benefit, the plaintiff being a mere accommodation indorser. He also avers that Sander informed him at the time his indorsement was obtained that his (Sander's) individual signature bound the firm. These averments were put in issue by the answer of Sander's copartners.
There was no evidence given at the trial which had any tendency to show that Sander was authorized to bind the firm by the use of his individual name in the execution of negotiable paper, unless such evidence is found in the eighth clause of the articles of copartnership entered into between Sander and his two associates. The plaintiff put these articles in evidence. The eighth clause reads as follows:
“8. None of the partners shall indorse notes or sign bonds individually, or in the name of the firm, or lend the money of the same, or sell out his share in the business, without the consent of the other partners, except Enno Sander, who, in his capacity of financier of the concern, shall provide for funds to carry on the business, and use his own judgment in obtaining them. He shall, however, be obliged to use his individual name alone for the purpose of procuring money by notes or otherwise, and shall thus be individually liable for all the debts contracted in such manner, and likewise be individually responsible for all losses which may occur in consequence of such indorsements. He shall have the privilege of retiring from the partnership before its termination, on certain conditions.”
Now what is the fair construction of this article? Does it empower Sander to draw notes in his own name and thereby bind the firm? I think not. The note upon the face of it was Sander's note and not the note of the firm. (See Boyle v. Skinner, 19 Mo. 82; Farmers' Bank of Missouri v. Hudgins, 41 Mo. 574;...
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