H. G. Olds Wagon Works v. Coombs

• Decision Date: 13 May 1890
• Docket Number: 14,167
• Citation: 24 N.E. 589,124 Ind. 62
• Parties: The H. G. Olds Wagon Works v. Coombs et al
• Court: Indiana Supreme Court

24 N.E. 589

124 Ind. 62

The H. G. Olds Wagon Works v. Coombs et al

No. 14,167

Supreme Court of Indiana

May 13, 1890

From the Allen Superior Court.

The judgment is affirmed, at the costs of the appellees, upon condition that they will file a remittitur within twenty days; otherwise the judgment is reversed, with costs.

H Colerick and W. S. Oppenheim, for appellant.

J Morris and J. M. Barrett, for appellees.

OPINION

Mitchell, C. J.

On the 4th day of November, 1882, Myers delivered to Coombs &amp Co. an order duly signed by him and addressed to the Olds Wagon Works, substantially as follows: "From this date you will please credit all shipments I may make to you to Coombs & Co., subject to settlement with them by note on ninety days' time, except doubletrees, etc., bought of me for cash, which I will collect."

It appears from the complaint that Myers was engaged in getting out timber and manufacturing it into gearing, felloes doubletrees, etc., and that he had become largely indebted to Coombs & Co. for money advanced to him. He was shipping, or proposing to ship, the material produced at his mill, or manufactory, to the Olds Wagon Works, and in consideration of an agreement on the part of Coombs & Co. to make further advances to him, with which to prosecute his business, he executed to them the order above set out, which it is alleged the Olds Wagon Works duly accepted. It is averred that the wagon works thereafter received shipments of material from Myers exceeding in value the amount of the indebtedness due from the latter to Coombs & Co., including the advancements made to Myers, and that the amount has all been paid over in pursuance of the order except $ 266.66, which the defendant refuses to pay.

Accepting the averments of the complaint as true, the argument that there was no consideration to support the agreement to accept the order is not maintainable.

The indebtedness due from Myers to Coombs & Co., and the agreement of the latter to make further advances to the former, were an adequate consideration for the execution of the order as between the immediate parties thereto; and the agreement of Myers to ship, and his subsequent shipment to, and the receipt of material by, the Olds Wagon Works, were an adequate consideration for the acceptance of the order by the latter, and for the agreement to credit and pay the amount of such shipments to Coombs & Co.

In the view we take, the construction which the appellant seeks to place upon the complaint, and the bill of particulars thereto attached, is not an admissible one. After the order was delivered to Coombs & Co., and accepted by the Olds Wagon Works, it became effectual to transfer to the former an unqualified right to be credited with, and ultimately to be paid for, all material except doubletrees etc., which Myers should thereafter ship to the latter, until the agreement was, upon reasonable notice, rescinded. It was a matter of no concern to the acceptor of the order whether the proceeds of shipments received by it were applied to an...