First Nat. Bank v. Badham

Decision Date30 June 1910
Citation68 S.E. 536,86 S.C. 170
PartiesFIRST NAT. BANK OF RICHMOND, IND., v. BADHAM.
CourtSouth Carolina Supreme Court

Appeal from Common Pleas Circuit Court of Richland County; R. W Memminger, Judge.

Action by the First National Bank of Richmond, Ind., against V. C Badham. Judgment for defendant, and plaintiff appeals. Reversed and remanded.

The following are the exceptions taken:

"1. Because his honor erred in the admission of testimony in that on the issue of whether the erasure of the printed provision for attorney's fees in the two notes sued on herein had been made by the defendant or without his consent. His honor, over plaintiff's objection permitted the witness Meighan (who, as bank collection clerk, had handled other notes executed to defendant Badham, on printed forms like the two notes in question) to testify that the printed attorney's fee clause was not erased in the said other notes; plaintiff objecting that such testimony was irrelevant, and that the fact that the clause 'was not erased in other notes does not tend to prove that it was not erased on these notes,' and his honor holding and stating, 'does not prove that it was not erased on this note, but would be some evidence on that point,' and allowing defendant's attorney to ask the question, 'Do you recall ever having seen one of these notes of Mr. Badham with the clause to which I called your attention erased?' and allowing, over objection, the witness to answer, 'No, sir; I do not recall ever seeing one of the Badham notes with this erasure before.'
"It is submitted that the testimony was irrelevant and misleading in its effect upon the minds of the jurors, and that the effect was further prejudicial because his honor stated that the said testimony throws light on the question.
"2. Because his honor erred in allowing the defendant, Badham, over plaintiff's objection, to testify as to his relations with the machinery company to which he had indorsed the notes sued on herein, such testimony being conclusions from catalogues and correspondence which should have been produced as the best evidence, defendant endeavoring by such oral testimony--merely his personal construction in his own favor-- to prove that he was agent for the sale of said machinery, rather than independent purchaser and dealer on his own account (as plaintiff contends the correspondence shows), and that his indorsement was not intended as an absolute guaranty, to wit: 'A. In consequence of my writing, complete estimates and prices for mills were furnished me, and I acted with the knowledge of the Richmond City Mill Works--Mr. Lyles: The matter of prices ought to have been in writing; let him produce the writing. (Defendant then testified they were lost.) Mr. Muller: That relieves the matter from my friend's objection. Mr. Lyles: I do not think so. It does not permit him to testify to any relations which were based upon the papers themselves. I do not think it is sufficient for one who has had a catalogue of machinery of a machinery institution to testify as to its loss and contents. He should have given notice to produce such a catalogue, because it is always presumed that a printed catalogue like that--that the party who had it printed can produce it. The Court: I do not see what the contents of a catalogue has to do with it. Do not see the necessity of going into the contents. Mr. Muller: He is stating the connection between himself and the Richmond City Mill Works. The Court: Leave out everything in reference to correspondence, and give a plain statement of your connection, and we will get along better. Mr. Lyles: Your honor understands us as objecting to his testimony. He is going to testify from conclusions of correspondence. There was no personal conference between them. Mr. Muller: My friend is in error about that. The Court: Go ahead. A. I began, with their consent and knowledge, to solicit business-- Mr. Lyles: We object. If their knowledge and consent is in writing he must produce it. The Court: Go ahead. A. To solicit business in the city for the Richmond City Mill Works for their flour mill system. *** I actively canvassed this state from one end to the other for the Richmond City Mill Works, selling their machinery for them, soliciting trade for them, and I sold one or two of these large outfits for them-- Mr. Lyles: Our objection goes to all of this. *** He is now testifying to the result of the correspondence; his idea of the result of the correspondence. *** The Court: This testimony ought to go in on the question of bona fide holder of the notes. Mr. Lyles: We object on the ground that if he had written authority from them he must produce it; he has no right to testify what he had done by authority contained in a written instrument or correspondence. The Court: I do not understand this witness to say that he had written correspondence on this. The Witness: Great many of them I did not. *** Richmond City Mill Works were in the habit of sending me inquiries in this state. It was understood between us that I should be their exclusive agent-- Mr. Lyles: We object to his understanding. The Court: Have you a written contract with them? A. No, sir. I am trying to explain how the business grew up. Mr. Lyles: From the correspondence? *** The Court: Go ahead. The Witness: Under arrangements that had grown up between us and the understanding, I should have their exclusive agency of this state, they sent me inquiries from all over the state which I went to see, soliciting this trade for them. During those three or four years of soliciting I effected the sale of three mills *** (including this), and they recognized me as their agent by sending me all these inquiries and directing me to go-- Mr. Lyles: Does your honor rule he can testify to their sending him these inquiries when all were accompanied by letters? If a matter is done in writing, no matter what it is, the writing is the best evidence. (Objection overruled.) Witness: Well, as I said before, they sent me inquiries all over this state. I sold this machinery for them, and would make settlements with them; had correspondence with them concerning it. They would send me directions, blue print for putting up this machinery, and directions of that kind.'

"It is submitted that there was error in thus allowing defendant to testify of the effect and understanding of transactions by correspondence, the correspondence being the best evidence, and plaintiff suffered thereby, in that defendant was permitted to present to the jury, apart from the correspondence which was the best evidence, defendant's own deductions and plausible argumentative testimony that he was, after all, merely an agent ('soliciting this trade for them'), and not debtor on the notes indorsed by him.

"3. Because his honor erred in allowing the defendant, Badham over the objection of the plaintiff, to testify as to course of business by correspondence, and his conclusions therefrom of his agency in the sale of machinery for which the notes sued on were given and indorsed by him, and his nonliability by said indorsement, instead of requiring an effort to produce the writing as the best evidence, and so allowed the defendant to testify that he was not the bona fide guarantor of the notes sued on, but acted as the representative of the machinery company through which the plaintiff claimed, to wit: 'Q. When you would sell one of these large plants, describe the method you would pursue. A. Well, I would send the order in to the Richmond City Mill Works for the machinery, describe what it was for, *** and they would ship it to the customer--ship it to the original purchaser--and under my agreement I had to put that machinery up, that is, my mechanics had to put it up, according to the blue prints, the plans, that the Richmond City Mill Works furnished. Mr. Lyles: At the risk of seeming to be against the intimation of your honor's remarks a few minutes ago, we still submit that it is incompetent for this witness to go ahead and testify as to these orders, or anything else, having been in writing, until he has taken the proper steps showing that he has given notice to produce them, then he can offer secondary evidence of its contents. The Court: He is not testifying to the contents of the writing. Mr. Lyles: I think he is He said he sent orders to these people for this machinery. He is showing that he sent in orders, and that shows a written instrument. The Court: I have not observed anything more than that this witness is giving a general statement of his connection with these people. *** A. To make up a complete plant, I would sell the engine and boiler of the engine company I represented and the flour mill machinery from the City Mill Works, and the pulleys and shafting from the people I bought those things from, and the belting which I usually obtained in Columbia. Q. When you had settlements with the purchaser, how would you arrange them? A. That portion that belonged to the Richmond City Mill Works I would take good notes and turn them over to them, if notes, and with the other manufacturers the same way. I would divide up the whole order according to their interest in that order, and made settlement that way. Q. Was that done in the case of the Huffman machinery? A. Yes, sir. Mr. Lyles: All of it was in writing, and we object to his testifying. *** The Court: Was that done in writing? A. I sent the notes to these people in a letter accompanying the notes when I sent them to them. The Court: Do you expect them to produce that letter: haven't you got it? Mr. Lyles: We have it. If he gives us notice to produce it, we will produce it right now. The Court: He has not got to the point of settlement yet. Go ahead Q. (By Mr. Muller): That is the way you...

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8 cases
  • Security Finance Co. v. Hendry
    • United States
    • North Carolina Supreme Court
    • 29 Abril 1925
    ... ... attorney's fee for collection, and being an action by a ... bank for collection of notes purchased by it, and the court ... being of the ... thereon from January 12, 1925, being the first day of this ... term of court, at 6 per cent. per annum until paid; that ... Cole, 11 Or. 39, 4 P. 520, 50 Am. Rep ... 451; Bank v. Badham, 86 S.C. 170, 68 S.E. 536, 138 ... Am. St. Rep. 1043; Morrill v. Hoyt, 83 ... ...
  • Powell & Powell v. Greenleaf & Currier
    • United States
    • Vermont Supreme Court
    • 18 Octubre 1932
    ... ... Provision That First Payment Is To Be Made upon Signing ... Instrument ... First ... National Bank in Salem v. Morgan, 132 ... Ore. 515, 284 P. 582, 3 R. C. L. p. 883, par ... Bank of Richmond v. Badham, 86 S.C. 170, 68 ... S.E. 536, 544, 138 A. S. R. 1043; or by statement ... ...
  • Greenbrier Val. Bank v. Bair
    • United States
    • West Virginia Supreme Court
    • 28 Enero 1913
    ... ...          But a ... plea in abatement, or any plea filed at the first rule day, ... or which may now be filed at the second rule day, after ... default at the first, ... negotiable." Another case even more apt is American ... Nat. Bank v. Sprague, 14 R.I. 410. Other illustrations ... of the application of the rule respecting ... machinery as per contract, November 23, 1899."--First ... Nat. Bank of Richmond, Ind., v. Badham ... ...
  • People v. Gould
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    • Illinois Supreme Court
    • 19 Febrero 1932
    ...153, 233 N. W. 103;Westlake Mercantile Finance Corp. v. Merritt, 204 Cal. 673, 269 P. 620, 61 A. L. R. 811;First Nat. Bank v. Badham, 86 S. C. 170, 68 S. E. 536,138 Am. St. Rep. 1043;International Finance Corp. v. Calvert Drug Co., 144 Md. 303, 124 A. 891, 33 A. L. R. 1162;Continental Bank ......
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