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1 Thomp. & Cook 425

Howell v. Adams

New York Supreme Court

Decided September 15, 1873

New York Supreme Court · decided 1873-09-15

Verdict for the plaintiff, subject to the opinion of the court at general term. The action was brought to charge defendant as .a partner with one William Adams, as individual bankers at Sag Harbor, N. Y., under the name of the Suffolk County Bank, upon three certificates of deposit issued by such bank and payable to the order of plaintiff, one for $800, dated February 18, 1863, one for $370, dated June 15, 1866, and one for $200, dated August 24, 1868.

Relies on Payne v. . Gardiner · The Oneida Bank v. . the Ontario Bank · Pelham v. Adams

Decided 1873-09-15

Barnard, P. J.

¶1The plaintiff was a dealer with Hie Suffolk County Bank during the time the defendant was a partner. He had business relations with the bank, by which a credit was raised on the faith of the copartnership. The defendant was therefore bound to give plaintiff actual notice of his retirement from the firm. As to plaintiff, the partnership continued down to the death of William Adams. There is nothing in the change of the heading of the last certificate to vary the rule. The old partnership name remained, *427and under it was William. Adams, Banker. This gives no notice of the retirement of the defendant from the business.

¶2The statute of limitations has not run against the first certificate. The transaction was a deposit, and was not due until presentation of certificate at the bank. Payne v. Garden, 29 N. Y. 146.

¶3The change in the rate of interest by William Adams, after dissolution, did not destroy the contract. The change was made by the defendant. As to the plaintiff, the partnership continued.

¶4It is lawful for a bank, carried on by a partnership, to receive deposits and agree to pay interest upon them. The transaction was simply a loan to the bank, and the certificate evidence of it.

¶5If the certificate is void the debt remains. Pelham, v. Adams, 17 Barb. 384; Oneida Bank v. Ontario Bank, 21 N. Y. 490.

¶6Judgment for plaintiff upon the verdict.

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