Case ID: tenn_31/html/0295-01.html
Source: Caselaw Access Project
Author: {"author": "McKinney, J.,", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Bailey vs. Rawley.
    Negotiable Paper. Covenant. A covenant in the following form is held to be negotiable and transferable by endorsement: “On the 25th December, we or either of ns promise to pay Mrs. Alithea Allen thirty-five dollars for the hire of a negro girl -named Sarah, for the year 1848. We also agree to furnish said girl with three suits of good substantial clothing — -two suits of good summer clothes — one suit of good woolen winter clothes — a good blanket, worth two dollars and a half — a pair of good shoes and stockings, and pay her tax and doctor’s bill for the year 1848* Witness our hands and seals.
    W. W. Bailey, [Seal.]
    Security Saiil, T. Coker, [Seal.]”
    Same. Agent. An. agent having parol authority to transact all the business of his principal, transfer notes, &c., may assign and transfer negotiable paper belonging to his principal.
    This was a suit commenced by Rawley against Bailey, before a justice of the peace,-who rendered judgment for the plaintiff, and the defendant appealed to the circuit court oí Smith county.
    On the 'trial in the circuit court, the plaintiff read to the jury this obligation: “On the 25th December, we or either of us promise to pay Mrs. Alithea Allen thirty-five dollars for the hire of a negro girl, Sarah, for the year 1848. We also agree to furnish said girl with three suits of good substantial clothing — -two suits of good summer clothes — one suit of good woolen winter clothes — a good blanket, worth two dollars and a half — a pair of good shoes and stockings, and pay her tax and doctor’s bill for the year 1848. Witness our hands and seals. W. W. Bailey, [Seal.]
    Security, Saml. T. Cokee, [Seal.]”
    The plaintiff then proved by Van H. Allen, that he was, and had been for a long time, the general agent of his mother, Mrs. Alithea Allen, the obligee in the covenant — that he had verbal authority to transact all her business — to collect money —give notes, receipts, and make transfers of notes, itc. The plaintiff then offered to read to the jury the following assignment on the back of the obligation: “I assign the within note to D. A. Rawley, without recourse on me. June 5,1850.
    Alithea Allen,
    By Van H. Allen.”
    
      To the reading of this the defendant objected, but the objection was overruled, Oullom," Judge, presiding. There were verdict and judgment for the plaintiff, and the defendant appealed in error.
    Fite, for Bailey.
    J. G. Pickett, for Rawley.
   McKinney, J.,

delivered the opinion of the court.

The question in this case is, whether the proof of the as--signment of the obligation, on which the suit is founded, was sufficient to entitle the plaintiff below to sue and recover thereon in the character of assignee.

The instrument is under seal, and the assignment was made by an agent. The agent, who was examined as a witness, stated, that for a long period he had been the general agent of his mother, (to whom the obligation was payable,) in the transaction of all her business, collecting money, giving notes, and receipts, and transfering notes; and had done so with her knowledge and consent. That his authority was not in writing — that he had no direction to make the assignment of the obligation sued on in this case, but had a general verbal authority to transact all his mother’s business.

Upon this proof the obligation and assignment were allowed to be read to the jury, to which the defendant objected.

In this there was no error. It is well settled, that an authority to endorse a bill of exchange or promissory note, may be by parol; and by the act of 1786, ch. 4, § 1, bills, bonds, or notes for money, as well those with seal, as those without seal, are made negotiable and transferable by endorsement, in the same manner, and under the same rules, regulations and restrictions as promissory notes. And by the act of 1762, ch. 9, § 2, promissory notes were, in this respect, placed upon the same footing with inland bills of exchange by the law merchant. Whether the instrument transferred be with or without seal, makes no difference. In neither case is a seal necessary to the validity of the endorsement, and, therefore, an authority by parol to assign or endorse is sufficient. The proof of authority to make the assignment in the present case, we think, was ample.

In this respect, therefore, there is no error in the judgment.