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May v. Coffin

Samuel May versus Peter Coffin

May v. Coffin, 4 Mass. 341 (1808)
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Court
Massachusetts Supreme Judicial Court · State Highest Courts
Decided
March 15, 1808
Judges
Sedgwick
Citations
4 Mass. 341
Headnotes
An endorser of a bill of exchange is entitled to notice of the bill’s being dishon ored, notwithstanding the insolvency and absconding of the drawer.
Summary
Case on a bill of exchange by the endorsee against the endorser. Upon trial at November term, 1806, in this county, before Parker, J., a verdict was found for the plaintiff for the amount of the bill, damages, and interest; to be set aside and a new trial granted, if the Court should be of opinion, upon the facts in the case, or they should be reported by the judge, that the plaintiff was not entitled to recover. Those facts were as follows: —On the 20th of February, 1804, Samuel Ham, of Portsmouth, in the state of New Hampshire, drew his bill of exchange for 500Z. sterling on Messrs. Thomas Dickason éf Co., in London, payable to the * defendant [ * 342 j or his order at sixty days’ sight. The defendant endorsed the bill to the plaintiff, who sent it to his correspondents, Messrs. Cotterells, in London, who, on the 28th of April following, presented it for acceptance, which was refused for want of effects, and the bill was duly protested for non-acceptance. On maturity of the bill, viz., June 30, 1804, it was presented for payment, and refused for the same cause which was assigned for not accepting it. On the 18th of August, the plaintiff received the protest for non acceptance in a letter dated at Birmingham, May 2d, and sent by the way of Philadelphia. * On the 3d of September, 1804, the plaintiff’s [ * 343 ] agent called on the defendant in Portsmouth for payment of the bill, &c., and presented the protest for non-payment only. The defendant observed to the agent that this was the first information he had received of the bill’s being protested ; that he had not been notified of its being protested for non-acceptance; that he was not prepared to meet the payment; but that in a few days he would look round, and make preparation for the settlement of it, and other expressions to the same purport. On the 7th of September, being again called on by the plaintiff’s agent, he said he had consulted counsel, and now considered himself exonerated from the demand, on account of his not having received notice of the protest for non-acceptance. These last facts were shown by the deposition of Benjamin Penhallow, the agent alluded to. Ham. the drawer, stopped payment between the 27th of February and the 8th of March, 1804, and on the 14th of April, following, left PorUmouth, and had not returned at the time of the trial. On the 10th of June, 1804, his household furniture was attached, and after-wards sold upon execution. His farm and stock were attached on the 2d of March, and execution was afterwards levied thereon. Under these circumstances, it was contended for the plaintiff on the trial, that no damage happened to the defendant in consequence of the delay of notice to him of the non-acceptance or non-payment of the bill, and that his promise to the plaintiff’s agent to settle and pay the same was sufficient to entitle the plaintiff to recover.

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Opinion of the Court — Sedgwick

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The action stood continued for advisement, and at this term, the opinion of the Court (except the Chief Justice, who did not sit in the cause) was delivered by Sedgwick, J.

[After reciting the facts.] As the plaintiff had notice in Boston of the protest for non-acceptance sixteen days before it was communicated to the defendant in Portsmouth, there is evidence of loches, which, if not satisfactorily accounted for, are sufficient to preclude the plaintiff from a right to recover in this action. This the plaintiff says he has done by the evidence that Ham, the drawer, before the bill came back protested, had failed ; that between the 20th of February and the 8th of March, 1804, he stopped payment; that on the 14th of April following, he left the country, and has not since returned ; that on the 10th of June following, his household furniture was attached, and afterwards sold at auction ; and that on the 2d of March in the same year, his farm, and stock were attached, and afterwards taken in execution.

[ *347 ] * Whatever effect this evidence might have, if the *305 action was between the payee and drawer of a bill of exchange, we all think that it cannot avail in this case between the endorsee and endorser of a foreign bill.

The drawer of a bill ought to know his relation to the drawee; and when he draws, he undertakes that the drawee shall duly honor the bill. But in the case of an endorser, he does not know, and cannot know, the relation between the drawer and the drawee; and the substance of the obligation he assumes is, that if the endorsee shall use due diligence to obtain the money from the drawee, and is not able to do it, and shall also use due diligence in giving notice thereof to the endorser, that he will pay the amount of the bill and damages. And we can find no case, in which loches, in either respect, have not been adjudged to discharge the endorser. And the reason, as I conceive, is, because, by the legal construction of the contract, an endorsee does not undertake to pay, but upon there having been due diligence used in the application to the drawee, and in giving notice of his failure to honor the bill.

But it is said that there is evidence in this case sufficient, if the jury believed it, to establish the facts, that the defendant had waived an objection, which he might otherwise have had, to the plaintiff’s right to recover, and had promised to pay the money.

What a man says under the surprise of a sudden and unexpected demand for money ought tobe construed with a good deal of strictness. And in this case we are all satisfied that what the defendant said of paying money, from the payment of which he was discharged by law, ought not to bind him. There was, in fact, no good consideration for the promise.

We are all of opinion that there must he a new trial.

How later courts describe this case

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Cited by 16 cases

View all citing references →
1824–1825: 21830–1831: 31834–1835: 11838–1839: 11842–1843: 11850–1851: 11860–1861: 11872–1873: 11874–1875: 11896–1897: 11900–1901: 11936–1937: 12018–2019: 118242026peak 1830 · 3

Relies on it most ⓘ

  1. Keith v. Mackey5 Rob. 277 (1843) · Dissent
  2. Kennon v. M'Rea7 Port. 175 (1838)
  3. Freeman v. O'Brien38 Iowa 406 (1874)
  4. Price v. First National Bank64 P. 639 (Kan. 1901)
  5. Vane v. Towle50 P. 1004 (Idaho 1897)
  6. Holland v. Turner10 Conn. 308 (1834)

Most recent

  1. Commonwealth v. NajjarNo. AC 18-P-638 (Mass. App. Ct. Nov. 21, 2019)
  2. Rinehart v. Lucas190 S.E. 772 (W. Va. 1937)
  3. Price v. First National Bank64 P. 639 (Kan. 1901)
  4. Vane v. Towle50 P. 1004 (Idaho 1897)
  5. Freeman v. O'Brien38 Iowa 406 (1874)
  6. Montgomery v. Hamilton43 Ind. 451 (1873)

Citing references are not a citator: they show that a later opinion cites this case, not whether it followed, distinguished, or overruled it. Check negative history before relying on this case.

Authorities cited 0

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