153 S.E. 908 | W. Va. | 1930
The plaintiff in error, J. W. McGinnis, is a trustee of a church. He signed a note executed on behalf of the church. The circuit court found that he was bound thereon personally.
The note in question is as follows:
"Pennsboro, W. Va., July 19th, 1924.
"On demand, we, the trustees of the Ellenboro M. E. church, promise to pay to the order of the First National Bank without offset and for value received One Thousand Dollars negotiable and payable at the First National Bank of Pennsboro, W. Va., with interest from date. "C. W. Delancey,
*137"S.D. Riley, "Lulu M. Dwyer, "Mary L. Riley, "J. W. McGinnis, "C. B. Morris, "E. H. Delancey."
The church building was under construction and the money borrowed on the note was needed for its completion. The bank was fully apprised of the situation. According to the court records, S.D. Riley, J. W. McGinnis, and E. H. Delancey were trustees. There was oral testimony not objected to or contradicted (see record, pages 26 and 31) to the effect that C. W. Delancey and C. B. Morris were also trustees, and with the other three constituted the entire board. Lula M. Dwyer and Mary L. Riley were members of the church building committee.
Section 20 of the Negotiable Instrument Law (Code, c. 98A), provides: "Where the instrument contains * * * words indicating that he [a maker] signs * * * in a representative capacity, he is not liable on the instrument if he was duly authorized. McGinnis and his associates described themselves in the body of the note as "we, the trustees of the Ellenboro M. E. church." The word "trustees" signifies representation. It points ex vi termini to a real party in interest — here disclosed. Johnson
v. Smith,
As a general rule, a trustee has no implied power to bind the trust estate for money borrowed, and, even if he promise as trustee, he is bound personally. "The trust estate cannot promise." Taylor v. Davis,
The evidence as to how the bank or how McGinnis considered he was bound on the note is immaterial. The written words exempt him from liability, under the law and the circumstances.Wilson v. M. E. Church,
The judgment of the lower court is therefore reversed as to the plaintiff in error, and the action dismissed as to him.
Reversed; dismissed as to plaintiff in error.