The defendant Melliss having been arrested, now moved on his own affidavit to vacate the order. His affidavit alleged that previous to receiving the plaintiff’s letter, he had had no acquaintance or dealing with the plaintiff; that as soon as the moneys were received, they remitted according to their usual and invariable custom their bill of exchange on their ¡Nottingham house; that the bill was accepted by the drawees, and was delivered to and received by the plaintiff as payment of the moneys deposited ; that at the time of the acceptance and delivery,of the bill the defendants were in good standing and «•edit, and that after the date of the acceptance, Ayres & Melliss paid all their acceptances as they fell due, to the amount of over two hundred and fifty thousand dollars, and all other indebtedness, until their suspension on the 24th of October. The deponent further alleged that he never received personally any of the money, and that the ¡¡Nottingham house had from, the time of the acceptance of the bill, till about the time of their suspension, funds of the ¡New York house to a much larger amount than the bill.
The plaintiff opposed the motion with a counter-affidavit, tending to show that the plaintiff had objected to having the bill sent him, and had requested payment of the money.
At chambers the motion to vacate the order of arrest was granted.
The plaintiff appealed to the general term.
W. E. Curtís, for the appellant, cited White a. Platt, 5 Den., 274 ; Howard a. Homer, 1 Code R., N. S., 406; 6 How. Pr. R., 88; Stoll a. King, 8 How. Pr. R., 300; Burnham a. Corey, 4 Sandf., 707 ; Hawkins a. Appleby, 2 Ib., 428; Story on Partn., § 108; Collyer on Partn., § 240; Strong a. Stevens, 4 Duer, 668 ; Donohue a. Henry, 4 E. D. Smith's C. P. R., 162.
Shea Richardson and J. M. Van Cott, for the respondents.
The defendants need not have taken charge of the funds, but having done so, I think it was a breach of trust instanter to remit a bill on themselves at sixty days—in other words, a promissory note, taking a loan of the money without authority.
It appears to me that there is no pretence in this case that the defendants were to pay the identical money deposited; and that they were at liberty to use the money in any way they pleased, entering into an ordinary contract that their firm in England should pay the amount. Brown Brothers, and other houses, give letters of credit in such cases every day, and certainly could not be held to arrest for fraud in case of failure.
Order appealed from reversed without costs.