Noyes v. Crandall

Citations

• 6 S.D. 460
• 61 N.W. 806
• 1895 S.D. LEXIS 135

Syllabus

<p>1. While a member of a partnership engaged in the banking business, designated and appointed to act as cashier, has a legal right to transact all buisness within the inherent powers of such an officer, in determining his authority to bind the partnership by a particular act or by a course of dealing, usuages and customs that have not received judicial sanction must yield to legislative expressions, and to the decisions of the courts, when in conflict therewith.</p> <p>2.. A draft, ostensibly made by a partnership engaged in the banking business, payable to the member thereof who signed it as ehashier, though sufficient upon its face to put third persons upon inquiry, and raise a presumption that he is attempting to appropriate to his private use money belonging to the bank, is not conclusively void; and in an action against the partnership based thereon, by a creditor of the cashier, who has paid him full value therefor, evidence tending to show that the copartner of the cashier had authorized such officer to pay his individual debts to the plaintiffs out of partnership funds, or had sanctioned such conduct by habitually and knowinglypermitbinghim bo make drafts from time to time to their order for that purpose, is admissible, and should be submitted to the jury, to be considered under proper instructions relating to the subject of acquiescence or authority.</p> <p>(Syllabus by the Court.</p>