34 Tenn. 535 | Tenn. | 1855
delivered the opinion of the court.
Joseph I. Andrews, E. L. Andrews and Z. Andrews, being brothers, had for many years been doing business as partners in the cities of New York, New Orleans, Mobile and Memphis, under the firm name at New York, “J. I. Andrews & Brothers,” at New Orleans, “Andrews & Brothers,” at Mobile, “E. L. Andrews & Co., at Memphis, J. I. Andrews.” On the 30th September, 1843, the partnership dissolved, having large means, as well as heavy liabilities, which were by agreement to be paid by E. L. & Z. Andrews, who still continued the business under the old firm names.
“New OkleaNs, Nov. 13, 1843.
To the President and Directors of the BumTc of Mobile.
Gentlemen: The Bank of Mobile holds certain promissory notes of E. L. Andrews & Co., and Andrews & Brothers, of which firms I was a member until the 30th of September last. This is to witness, that E. L. Andrews and Z. Andrews, or either of them, is authorized to sign any notes with the name of the firm in liquidation, for the extension or renewal of said obligations, and I agree to continue my liability on such renewals or extensions as if I yet continued a member of said firms. Yours Bespecfally,
J. I. Andrews.”
Witness, A. Danvergne.
At the time of dissolution and the date of the power, the Bank held two notes on the firm of Andrews & Brothers; one dated March 8, for $8,640, and the other for $9,504, dated June J, 1843, 'both at twelve months. Also, two notes on E. L. Andrews & Co., one for $4,700, dated June 2nd, and the other for $6,400, dated June 28th, 1843. These were renewed and reduced by payments from time to time, until, as is alleged, they resulted in the notes now sued upon, viz: one on “Andrews & Brothers” for $6,480, at twelve months, dated June 5, 1849, and one
Z. & E. L. Andrews continued to do business in tbe names of tbe old firms, until 1845, when they took in as a partner, Tbomas Brown, and continued tbe business in tbe same name and style, until tbe death of tbe Andrews’, on same day in 1849, and after tbe last renewals.
His Honor, tbe circuit judge, charged tbe jury that as tbe introduction of Brown into tbe firm in 1845, operated as a dissolution, tbe power given to Z. & E. L. Andrews by tbe defendant to bind him ceased, and be would not be liable on any paper signed by them after that time, and consequently must succeed in bis plea of non est faoium in this suit. In conformity to this direction there was verdict and judgment for defendant — motion for a new trial overruled, and appeal in error to this court. Upon tbe correctness of this legal proposition tbe case must turn, and it has been elaborately argued here on both sides. In view of tbe importance of tbe case, and tbe somewhat novel principle involved, we have held tbe case under advisement since tbe last term, and received and considered additional briefs at tbe present term.
There can be no controversy as to tbe soundness of tbe legal positions taken by tbe defendant’s counsel, that tbe death, or retirement of a member of a firm, as well as tbe introduction of a new partner, operates as a dissolution, and a power given previously to such firm, would terminate upon tbe happening of such event. It is true, also, that after a dissolution, tbe former part
It is very well settled also, as insisted by defendant’s counsel, that a power of attorney must be strictly construed as to the extent of the authority conferred, and the principal cannot be bound beyond the limits prescribed by himself.
Not having done this, but silently permitting the bank to rely upon his unrevoked letter of credit, until
We therefore think his Honor erred in his construction of this power, and that the defendant is bound for the notes sued upon, if it be satisfactorily established that they were signed by either Z. or E. L. Andrews, and are for what remains due upon the notes referred to in the power of 1843.
Keversed and remanded.