National Bank of Commerce v. Thompson Advertising Co.

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CRAIG, J.

The defendants appeal from a judgment rendered in favor of the plaintiff in the superior court of Los Angeles County, upon a promissory note.

Appellant copartnership, consisting of defendants White and Winthrop, was engaged in general printing, advertising, multigraphing and mimeographing business, for which they solicited orders, and furnished stationery, supplies and labor. Respondent purchased stationery and printing from them, and upon the application of Winthrop loaned $500, and $2,000, for which the latter signed promissory notes to the bank, -“Robert A. Winthrop. Thompson Adv. Company”. An account was opened at the bank by Winthrop in the name of “Thompson Adv. Co., Partnership”, and various amounts were withdrawn, totaling $2,063.54, by checks signed by him. Numerous statements rendered by the copartnership for printing and stationery were paid by the bank, which were receipted as follows: “Paid”. “Thompson Advertising Company by George Cossitt White”. Respondent thereafter notified said company of the amount due upon the notes and • requested payment, whereupon appellant White denied knowledge of the account. Following negotiations between the parties and their counsel, White assigned an insurance policy as security for- the amount due, and later executed a promissory note in his individual name and that of the company, therefor. The present suit was instituted for collection of the note last mentioned.

The several grounds assigned for reversal of the judgment revolved about the question as to whether or not the note in suit was a valid obligation of the advertising company and of White. It is strenuously insisted that the copartnership was a “trading” and not a general partnership, that Winthrop incurred the indebtedness as an individual, without authority to bind the partnership, and that the latter received no benefit from the original loan; that White gave the final obligation upon advice of counsel only when threatened with suit, and that it was therefore executed under mistake of law, and without consideration. It is not denied that with the exceptions of office rent for one month, and the salary of an assistant, the moneys borrowed were devoted by Winthrop to his personal use. Nor

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