Robinson v. Nevada Bank

Hayne, C. This was an action for damages for the conversion of 3,748 sacks of wheat. The defense was" that the wheat had been pledged to the bank by the respondent’s intestate, J. H. Byers, acting through one W. A. Mathews, who is claimed to have been his agent, to secure the payment of money advanced by the bank, which money had not been repaid. The general facts are as follows: Byers was a farmer in Colusa County, who was in the habit of sending his wheat" to Mathews to be warehoused. Mathews was in the habit of storing the wheat in the Mission Rock warehouse in the name of Byers; and this particular lot of wheat was so stored. In November, 1884, Mathews gave a promissory note to the bank, signed “ W. A. Mathews, agent,” and pledged the wheat to secure its payment. The question at the trial was, whether Mathews had authority to pledge the wheat. The trial court gave judgment for the plaintiff,, and the bank appeals from the judgment and from an order denying a new trial.

1. The appellant asserts in general terms that the evidence is insufficient to support the decision. The learned counsel, however, does not point out any evidence to show that the findings are erroneous, and in view of his well-known ability and industry, we consider this equivalent to an acknowledgment that the evidence is at least conflicting. But as the case is a hard one- for the bank, which undoubtedly parted with its money in good faith to a person who, in some respects, at least, was agent for the owner of the wheat, we have examined the evidence to see whether it justified the findings. In the first place; it is to be observed that the bank cannot claim that it did not know that Byers was the owner of the wheat; The original "warehouse receipt showed that he was [109]The receipt taken, in the name of the bank in place of-the original receipt showed the same thing, and the note itself showed it, and the bank makes no such claim; for the answer avers that the money was advanced to Byers, and that the wheat pledged was his -wheat.

In the next place, it is clear that this use of the wheat was without the knowledge or consent of Byers. He knew nothing of what had been done until an account was presented to him by Mathews, in March, 1885. Mathews, therefore, had no actual authority to pledge the wheat. The only possible question is, whether he had ostensible authority. Upon this question it is to be observed that the note did not purport to be in the name of Byers. It was signed, “W. A. Mathews, agent.” The officers of the bank seem to have accepted the statement of Mathews, and to have concluded that because he had been engaged in other transactions for Byers, therefore he had authority to act in this. But in what transactions? It was incumbent upon the bank to show that he had been authorized to act in similar transactions. It was incumbent upon it to show at least one specific instance in which Mathews had assumed to sign the name of Byers, or to pledge his property for obligations in Mathews’s name, and in which such act had been authorized or recognized. Upon the defense made the defendant had the affirmative of the issue, and was therefore bound to produce a preponderance of evidence. And it is to be presumed that the bank kept proper records of its transactions, and could have proved such a specific instance if it had existed; but no such instance was shown. All the specific instances shown, except one, were of notes signed by Byers himself, although these were brought to the bank by Mathews. There was one note which was signed " W. A. Mathews,” with the name "J. H. Byers” written across its face; but this was not written by Byers, who knew nothing about it, and he is not shown to have authorized or recognized it. It was