Parnall v. Farson — 234 N.Y. 648

Majority

p. 648

Christopher G. Parnall, Respondent, v. John Farson, Appellant.

Headnote

Contract — guarant y — partnership — when junior partner liable upon contract of guaranty executed in name of partnership by authority of senior partner without his knowledge or consent.

Parnall v. Farson, 199 App. Div. 525 , affirmed.

(Argued December 13, 1922;

decided January 16, 1923.)

Appeal, by permission, from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered January 27, 1922, which affirmed a

p. 649

determination of the Appellate Term affirming a judgment of the Municipal Court of the city of New York in favor of plaintiff. The action was to recover upon the following contract of guaranty:

„ CmBAa0> MarA 9> 1909.

“ For value received we hereby guarantee prompt payment of both principal and interest of Bond No. 394, $1,000, due January 1, 1918, of the Eden (Wyo.) Irrigation & Land Co.

“ p. pro. Farson, Son & Company,

“ H. B. PARROTT, Cashier ”

It is conceded that Parrott was authorized by John Farson, Sr., to sign the firm name. The action was defended solely on the ground that John Farson, Sr., had no authority to bind the firm, or this defendant as a partner, by such a guaranty, and that the giving of the guaranty had not been ratified by the defendant.

Simon Fleischmann, Walter H. Pollak and Saul S. Myers for appellant.

Charles R. Coulter and Guy C. Heater for respondent.

Judgment affirmed, with costs; no opinion.

Concur: Cardozo, Pound, McLaughlin and Andrews, JJ. Dissent: Hiscock, Ch. J., and Hogan, J., on the ground that evidence was improperly received of the settlement of claims held by other parties. Absent: Crane, J.