Majority
Headnote
1. Pabol Evidence—Varying Written Instruments.On the pleadings, as upon the trial, the issue was a narrow one, embracing the single question as to whether the defendant delivered the two notes of §15,000 each pursuant to the agreement. That the plaintiff had performed all the conditions of the agreement, and had delivered the stock, was admitted. It was also-conceded that the defendant had made the cash payment, and delivered to the plaintiff five of the seven notes called for by the contract. What remains, ■ therefore, is to determine whether the defense was' made out, by sufficient evidence to warrant its submission to the jury, “that it was understood and agreed at or about the time when the shares of stock were delivered, as set forth in the complaint, that all of the said notes referred to therein should be delivered to James D. Leary, referred to in the complaint as the representative and agent of the plaintiff, and the defendant was directed to and did deliver them to said Leary by the authority and direction and with the knowledge of the plaintiff.” It will be noticed that the defendant denies that the notes were to be delivered forthwith at the timé of the delivery of the stock; and it is urged that, as the manner of delivery was not provided in the agreement, it was competent for the defendant to show that, pursuant to an outside or collateral agreement made between James D. Leary and the plaintiff, all the notes were
We think it equally clear that it was proper to exclude proof of such a collateral agreement because not pleaded. The answer, in effect, alleged that by direction of the plaintiff the notes were given to Leary as the plaintiff’s agent and representative. What was sought to be proven by the evidence excluded was that pursuant to an agreement between Leary and the plaintiff the notes were delivered to Leary by the direction of the plaintiff, to be held by Leary for his own benefit, and in his own interest. Even if what was sought to be proven had been alleged, namely, that there was some agreement made between Leary and the plaintiff by which the former was entitled to receive the notes to secure him on obligations which had arisen from his transactions with the plaintiff, it is doubtful if any such agreement would be available as a defense, because Leary was not a party to the suit, and neither by demurrer nor answer was it claimed that he was a necessary or a proper party. Under the agreement, the defendant was liable as the purchaser of the stock, and was bound to deliver the notes to the plaintiff; and while it was competent for him to prove a conversation in which the delivery to Leary was arranged for, this did not warrant bringing the transactions between Leary and the plaintiff into this action. The difference, therefore, between what was alleged and what was'sought to be proved is apparent.
Regarding the written agreement as the instrument defining the rights and obligations of the parties, it remains to consider the facts with respect to the delivery of these two notes, and as to whether, as claimed by the answer, there was a delivery to Leary in accordance with the plaintiff’s direction. On September 28th the plaintiff, the defendant, and James D. Leary met at the Chemical Bank for the purpose of carrying out the agreement. The certificates of stock were then held by the bank as security for a loan to the plaintiff, and it was arranged with the bank that the shares should be released on the promise of Leary to deposit with the bank the next morning the $30,000 in notes; and thereupon the plaintiff delivered the stock to the defendant, who gave his receipt. It would appear that at that time none of the notes had been signed by the defendant, although they had been indorsed by the others; and when, according to Polley,
“No other reason. That is the only reason. Mr. Stokes was being asked to surrender the stock then. I don’t recollect, when Mr. Leary said his son had them, that he said how soon he would get them for Mr. Stokes. He told him his son had them, and he would get them. I don’t recollect how soon he said he would get them. When Mr. Leary told Mr. Stokes he would get him the notes, Mr. Stokes then handed the stock over to me. I gave my receipt for it, and I didn’t hear Mr. Leary tell Mr. Stokes he should have the notes that afternoon.” He further testified: “Mr. Stokes told Mr. Leary there for him to keep the notes. I didn’t understand him to say when, he would get the notes. Mr. Leary said he didn’t have the notes there. I won’t say that he said he would get them for Mr. Stokes. I can’t say that. He promised to get them. 1 don’t recollect when he said he would get them. Mr. Leary didn’t say when he would get them. Mr. Stokes and Mr. Leary had a conversation about notes, but I was doing something else. * * * Mr. Stokes said to Mr. Leary at the Ohemical Bank, ‘You keep them;’ told me to-give the balance of the notes to Mr. Leary. That is all. * * * The next day I signed those notes, and handed them back to Mr. Leary.”
Polley makes tMs clear by saying that the only occasion when anything was said by the plaintiff to him about giving the notes to Leary was on the occasion at the Chemical Bank; that the next time the plaintiff saw Mm he asked for the notes, and that he told the plaintiff he had given them to Mr. Leary. “After I told Mr. Stokes I had given them to Mr. Leary, he repeatedly asked me again for the notes, and I always told him the same tMng.” It was thus made to-appear by the defendant’s testimony that he never delivered the two notes to the plaintiff personally, but that, after signing, subsequent to the interview at the Chemical Bank, he delivered them to Leary; and he insists that this was a proper delivery, in view of the plaintiff's having told him to do so. The defense, therefore, involves two propositions: (1) That the plaintiff assented to a delivery of the notes to Leary in performance of the defendant’s contract; and (2) that due delivery had been made before this assent was withdrawn.
In support of the first of these propositions, while we have the defendant’s statement that the plaintiff said to give the notes to Leary, this is to be considered in connection with the attitude of the parties as they stood at 'the time this direction was given. The plaintiff was the seller of the stock, and Leary was jointly interested with the defendant in its purchase. When asked for the delivery of the stock, the plaintiff demanded the seven notes, and, instead of their being then and there delivered, the evidence shows that they were not then even signed by the defendant, but that Leary induced the bank to release the stock on his guaranty that he would produce the $30,-000 note the next morning; and Leary was equally persuasive in getting the plaintiff to surrender the stock to the defendant, telling the latter to give the notes to Leary, from whom, in discharge of the defendant’s obligation, he expected to receive them. There is no suggestion that at that time the plaintiff had waived his right to receive the notes, or intended that the defendant should deliver these two in suit to Leary to the end that the latter might retain them for Ms own benefit. In other words, there was no suggestion of any new
The plaintiff was not relieving the defendant from the obligation ■of his contract, but, on the contrary, he was demanding performance, and surrendered the stock only on the assurance that he should have the notes which the contract called for. Mr. Leary was not acting on the plaintiff’s behalf, but was present as a co-purchaser with the defendant for the purpose of securing the purchased property; and when the plaintiff demanded the agreed price as a condition precedent to delivery he stood sponsor for the performance of the defendant’s written obligation, and in this way persuaded the plaintiff to deliver the shares. Deducing, however, the strongest inferences that in .any aspect can be drawn from the defendant’s statement that the plaintiff told him to deliver the notes provided by the agreement to .Leary, let us assume that, if this had been done before the right to receive them had been revoked, it would have been a good delivery. It will not be questioned, as matter of law, that a mere naked direction to the defendant to deliver, or authorization to Leary to receive the notes for him, could, at any time until they were actually delivered, have been revoked by Mr. Stokes. The contract called for notes bearing interest at 6 per cent, per annum; but the defendant says that these notes in suit did not contain the words “with interest” when he signed them and placed them in Leary’s hands, and that at that time they were drawn to the order of the plaintiff. He testified that subsequently these notes got back into his possession; that he then saw that there had been written into them, after he had signed and delivered them to Mr. Leary, the words “with interest”; that, instead of being made payable to the plaintiff alone, the words “or bearer” had been inserted; but that he did not know who had altered the notes, or under whose direction it had been done. “I never did authorize anybody to alter those notes in any way, shape, or form.” It will be noticed, therefore, that the notes delivered to Leary did not conform to the contract, and the defendant is not in a position to rely on those two notes as a discharge of his obligation under the contract. The defendant admits that while the notes were thus held by Leary the plaintiff was continually demanding delivery, and that when he told him Leary had them lie said that Leary had no business to have them, and that the plaintiff went so far as to threaten him with suit, saying that he would compel him to comply with his agreement. There can be no question, therefore, that the defendant ■understood fully that, even if originally the plaintiff was willing that
There are numerous exceptions to rulings upon evidence, most of which are disposed of by what has been said in considering the issue presented by the pleadings. Most of them relate to the exclusion of evidence to show the oral agreement between Leary and the plaintiff, claimed to have been entered into at the time of or prior to the written agreement, and not embraced therein. A similar ruling was made excluding evidence as to the manner of the delivery to Leary of the notes which went to the Knickerbocker Trust Company. But as there was no dispute as to the deposit of such notes, and as it would appear that under the terms of the agreement Leary had an interest in their deposit, such evidence could not have any relevant or material bearing upon the question of the disposition of these two notes in suit, and was properly excluded. It was sought to be proved that after Leary had obtained possession- of the first notes, the plaintiff was willing to give him other security if he would surrender such notes. This was clearly inadmissible, because immaterial. It could have no bearing upon the defendant’s obligation to deliver the notes, which was the only point in issue. Whatever offers the plaintiff made to Leary afterwards to get the notes did not affect the question of this due delivery. And throughout the trial, as upon this appeal, the confusion to be noticed as to the defendant’s attitude grows out of the view, erroneously entertained, that he was justified in injecting Leary into the case, and in utilizing the differences between Leary and the plaintiff as a fender to ward off the fulfillment of his own obligation. We have already called attention to the fact that Leary was not a party to this action, and the judge was right in excluding evidence which did not support the defense of due delivery of the notes. As we have found no error, therefore, either in the direction made by the court on the evidence as presented, or in the rulings upon evidence, we think that the judgment ■ appealed from should be affirmed, with costs.
The plaintiff appeals from an order denying a motion for an extra allowance. Such a motion is only granted as provided by the Code in difficult and extraordinary cases, and it cannot be said that this action is so clearly within that class that no discretion was vested in the trial judge, who was favorably situated to determine that question; and we do not think that his determination should b 1 disturbed. The order is accordingly affirmed, with $10 costs to the defendant.
All concur.