Majority
Headnote
A party is liable in an action for damages who, in bad faith and with a view of inducing others to credit a merchant, represents that he has examined into his affairs and considers him solvent and worthy of credit, and that be is going on well, when such merchant is, in fact, insolvent, and the party making the representations has not investigated his affairs, and knows nothing of his business condition, except that he is largely indebted.The questions of law arising upon this appeal appear to be the following : 1. Whether the complaint sets forth a cause of action ; 2. Whether the evidence on the part of the plaintiffs, standing uncontradicted, made out a case suitable to be submitted to the jury, or whether, on the contrary, they ought to have been nonsuited; 3. Whether the sales of goods made by the plaintiffs to Walter H. Smith, subsequent to April, 1848, were so far out of the influence of the alleged false representation that the consideration of them should have been taken from the jury ; 4. Whether the interest of John A. C. Gray was assignable; if not, 5. Whether the action in the names of the other partners can be sustained, in consequence of the defendant having omitted to demur to the complaint,; and lastly, if the last point is determined against the defendant, whether the value of the interest of Gray ought to have been deducted from the recovery.
(1.) The complaint imputes to the defendant the sending of the message with a view of inducing the plaintiffs to sell goods to Walter H, Smith; and the message imports that the defendant had examined into Smith’s affair's with sufficient attention to enable him to express the- <.pinion that he might safely be trusted. This is somewhat qualified by the promise that in case of anything adveioc happening they should be -taken care of, a promise which, it is admitted, cannot be availed of in this action ; still, with this deduction from its force, it was a representatii >n of considerable strength, that the defendant had -ascertained that-Smith was, in a business point of view, trustworthy. The second branch of the message, as set out, is equally strong; that the defendant had talked with Smith, and was satisfied he was solvent and was going on well. Such a representation, from a person entitled to confidence, would be calculated to exercise more or less influence upon the mind of a dealer. Then the breach is that Smith was in fact insolvent, and the defendant had not made any such examina
In Allen v. Addington ( 11 Wend., 374 , 386), the court for the correction of errors decided that in an action of this kind the plaintiff must aver that the false representation was made with an intention to deceive and defraud him. Under our present system of pleading, I conceive that a complaint should contain the substance of a declaration under the former system. It is sufficient, however, that the requisite allegation can be fairly gathered from all the averments in the complaint, though the statement of them may be argumentative, and the complaint deficient in technical language. In this complaint the message is characterized as false and deceitful, and it is averred that by means of it the plaintiffs have been deceived and defrauded, and that the defendant wrongfully and deceitfully encouraged and persuaded the plaintiffs to sell the goods. And it is further alleged that the defendant, when he sent the message, well knew that the plaintiffs would rely upon its truth,, and that it would induce them to sell and deliver the goods to W. H. Smith, upon credit, when he was not a person to be safely trusted. This language, taken together, I think, by a reasonable intendment, makes out the allegation of bad faith and evil intention on the part of the defendant, though a concise averment in the terms mentioned in the books would have been better pleading, and more in accordance with the spirit of the Code.
(4.) If the interest of Mr. Gray in the cause of action was not of a nature to be transferable by assignment, the written transfer given in evidence was inoperative, and he was a necessary party to the action. We decided at the last term, in the case of McKee v. Judd (2 Kernan, 622), that a right of action for the conversion of personal chattels might be assigned, so as to vest a property in the assignee, and
These cases certainly furnish a respectable amount of judicial authority, and I think warrant us in holding, that any interest to which the personal representatives of a deceased party would not succeed, is not the subject of assignment inter vivos. The subject is one of great practical importance, since the Code of Procedure has authorized actions by assignees of a chose in action; and I am glad to find a rule laid down, of easy application, which will furnish a ready solution of many questions upon which the courts of original jurisdiction have differed in opinion. I may mention an additional case from the supreme court of Pennsylvania, upon the general question. O'Donnell v. Seybert (13 Serg. R., 54, 56) was an action for an excessive distress. It was held that the cause of action could not be assigned.
(5.) Although Grray, on the assumption that he had not parted with his interest, was a necessary party to the action, the defendant might, notwithstanding, consent to waive the objection and litigate the case upon the merits. Under the former system, the defendant could not in actions ex delicto object to the non-joinder of one who ought to have been made a party plaintiff, except by plea in abatement (1 Saund., 251, 291, note (g) and note (n) ; Gilbert v. Dickerson, 7 Wend., 451 ); and the Code of Procedure provides that where there is a defect of parties apparent upon the face of the complaint, the defendant may demur; and that where such an objection exists, but it does not appear by the complaint, it may be taken by answer (§ 144, subd. 4, and % 147); but if no such objection be taken either by demurrer or answer, the defendant shall be deemed to have waived the same. 148.) A dilatory defence, which a plea in abatement is considered to be, is not favored; but he who is entitled to avail himself of it must interpose it promptly, according to the established forms. Here the facts were fully disclosed by the complaint, and the defendant could have demurred. The authority to object.by way of answer is, in terms, limited to cases where the fact does not appear in the prior pleading. When, therefore, the last section which I have quoted declares that if the objection is not taken by demurrer or answer it shall be considered as waived, it means that if it be not taken by demurrer where that mode is proper, or by answer in cases where
(6.) The only remaining question then arises, whether the defendant was entitled to give in evidence the nonjoinder in diminution of damages. It has been repeatedly decided that where one or more of several tenants in common sues, and the defendant neglects to avail himself of the objection by plea in abatement, he may still give it in evidence to reduce the damages. (Dockwray v. Dickenson, Skinner, 640 ; Blackborough v. Graves, 1 Mod., 102 ; Addison v. Overend, 6 Term R., 766; Sedgworth v. Overend, 7 id., 273 ; Wheelwright v. Depeyster, 1 Johns., 471 ; Rich v. Penfield, 1 Wand., 380, 386; Gilbert v. Dickinson, 7 Wend., 449 .) These authorities are conclusive against the plaintiffs unless there is a distinction between tenants in common and joint tenants. The members of the firm were joint tenants, and not tenants in common. Partners are joint tenants of all the partnership effects during the existence of the copartnership, and even after dissolution until its affairs are wound up. (West v. Skip, 1 Ves., sen., 242; Collier on Part., § 123 ; Murray v. Mumford, 6 Cow., 441 .) In the case of tenants in common, the rule allowing the interest of the party not joined to be proved in diminution of damages is put upon the ground that he may still sue for the value of his share.;
In the course of the trial the plaintiffs were permitted to prove, against.the defendant’s objection, that Sayre was charged by the defendant with a communication to School-craft, of the same tenor with the one which he was requested to make to the plaintiffs, and at the same time. I think this was admissible as a part of the transaction, and as tending to show the motive of the defendant.
The defendant also excepted, because the judge did not respond specifically to all the propositions stated in writing by the defendant’s counsel. I do not think we ought to apply to the case of a series of propositions, in a request to charge, the rule applicable to an exception to a charge— that if any part of it is correct, the exception is unavailable for not specifying the parts intended to be objected to ; and I concede that the judge ought to respond to each proposition, provided it presents a question of law bearing upon the evidence. But in this case, where the separate propositions were very numerous, and the charge covered generally the questions of law presented, the defendant’s counsel, if he conceived that any one or more of them was not sufficiently answered, should again have called the judge’s attention to it. This the counsel did in this case as to one point, and it was fully met by the additional charge. If there was any other proposition which the judge failed to answer, it should have been mentioned.
The result of these remarks is, that the judgment of the suprem 3 court should be affirmed.
Hand, J., delivered an opinion in favor of reversing the judgment of the supreme court. Marvin, J., was also in favor of reversal.
Judgment affirmed.[1]
1 In the case of Jackson v. Daggett, 24 Hun 205 -6, Judge Dyiuian says, that this case “ is not in harmony with the current of judicial authority. The question was examined on common-law principles and authorities, without any reference to our statutes on the subject, which are controlling. In the opinion, it is stated, the power to assign, and to transmit to personal representatives, are convertible terms; and under our statute, for wrong done to the property, rights or interests of another, for which an action might be maintained against the wrongdoer, such action may he brought by the person injured, or, after his death, by his executors or administrators, in the same manner and with the like effect in all respects as in actions founded on contract. (3 R. S., 7th ed., 2394, § 1.) The next section takes out of the operation of this statute, actions for slander, libel, assault and battery, false imprisonment, and injuries to the person. Now, it is entirely plain, that the wrong complained of in Zabriskie v. Smith, was an injury to the rights and pecuniary interests of the plaintiff’s assignor. This case was decided in 1855, and in 1859, there went to the Court of Appeals for determination, the case of Haight v. Hoyt, 19 N. Y. 464 , an action against a vendor of land, for fraudulent representations as to incumbrances, which had been continued against the executor of the vendor, and the conrt there held, that the right of action survived against the personal representatives ; and the judge who prepared the opinion in Zabriskie A Smith, wrote an opinion on this case, in which he said, the cause of action was a wrong done, to the rights and interests of the plaintiff. This last decision was founded on our statute, while the other was not; and the two cases are entirely inharmonious. Besides this, the case of Zabriskie v. Smith has been criticised in Johnston v. Bennett, 5 Abb. Pr. (N. S.) 331 ; Freed v. New York Central Railroad Co., 25 How. Pr. 285 ; and Wade v. Kalbfleisch, 58 N. Y. 280 .” And it was accordingly held, that a cause of action against a sheriff, for his failure to return an execution against property, within the time required by law, and for making a false return, was assignable ; and that the assignee might sue thereon in his own name. Jackson v. Daggett, ul supra.