Frost v. Standard Metal Co.

• Decision Date: 17 April 1905
• Citation: Frost v. Standard Metal Co., 215 Ill. 240, 74 N.E. 139 (Ill. 1905)
• Parties: FROST v. STANDARD METAL CO.
• Court: Illinois Supreme Court

215 Ill. 240

74 N.E. 139

FROST

v.STANDARD METAL CO.

Supreme Court of Illinois.

April 17, 1905.

Appeal from Appellate Court, First District.

Action by the Standard Metal Company against R. Chester Frost. From a judgment of the Appellate Court affirming a judgment for plaintiff, defendant appeals. Affirmed.

W. P. Black, for appellant.

Henry S. Shedd, for appellee.

BOGGS, J.

This was an action in assumpsit in the superior court of Cook county by the appellee company against the appellant, in which judgment was awarded the appellee company in the sum of $1,500. The Appellate Court for the First District affirmed the judgment on appeal, and the record is before us on this, a further appeal.

The ground of recovery was that the appellee company extended credit to the firm of George K. Harrington & Co., involuntary bankrupts, in reliance upon the written guaranty of the appellant, as follows:

‘Chicago, July 19, 1901. Standard Metal Co.-Gentlemen: I hereby guarantee the purchase account of George K. Harrington & Co. to the amount of one thousand five hundred dollars ($1,500). R. Chester Frost, 167 Wabash Ave.’

At and immediately prior to the execution of said guaranty the firm of Harrington & Co. were engaged in business in Chicago as manufacturing jewelers. They desired to open a credit account for the purchase of gold and silver from the appellee company. The appellee company declined to extend credit to Harrington & Co. unless the account of the latter firm should be guarantied by some responsible party. Harrington & Co. proffered to procure the appellant as a guarantor for them. The appellee company consented to accept the appellant as guarantor. Subsequently Harrington & Co. brought a guaranty signed by R. Chester Frost & Co., a corporation. This the appellee company declined to accept, and demanded the personal guaranty of the appellant, which the representative of Harrington & Co. undertook to procure. The guaranty that had been executed in the name of R. Chester Frost & Co., a corporation, was returned to the appellant,together with the guaranty here sued upon, prepared in writing ready for his signature, and the conversation which had occurred between the representative of the appellee company and the representative of Harrington & Co. was then repeated to the appellant. The appellant signed the guaranty, and the same was delivered to the appellee company. Harrington & Co. were thereupon granted credit by the appellee company, and made a number of purchases of gold and silver during the months of July, August, September, October, November, and December, 1901, and January, 1902, and during that period made a number of payments on their account. The aggregate of sales, including interest items, amounted to $9,789.27, and the aggregate of payments amounted to $7,168.76, leaving a balance due to the appellee company of $2,620.51. On January 30, 1902, the appellee company notified the appellant of the amount so due from Harrington & Co. on the account, and that they held him liable as guarantor, and demanded payment of the sum of $1,500 from him. Harrington & Co. became involuntary bankrupts in February. 1902. There was no proof that the appellant was notified by the appellee company that it had accepted the guaranty, or had given credit to Harrington & Co. on the faith of it. Appellan...