Burrill v. Phillips
U.S. Circuit Court for the District of Rhode Island
At law. The plaintiff [Ebenezer Burrill) was a commission merchant in the city of New York, with whom the defendant [James Phillips] deposited certain cotton for sale. The cotton was sold to Murray &' Wheaton on a credit of four months, according to the custom of factors at New York to sell on credit. A note was taken for the amount, and before it became due, Murray and Wheaton failed.
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At law. The plaintiff [Ebenezer Burrill) was a commission merchant in the city of New York, with whom the defendant [James Phillips] deposited certain cotton for sale. The cotton was sold to Murray &' Wheaton on a credit of four months, according to the custom of factors at New York to sell on credit. A note was taken for the amount, and before it became due, Murray and Wheaton failed. The present action was brought to recover the amount of certain advances made by the plaintiff to the defendant on account of the cotton. At the trial, the defence was confined principally to two points. 1.…
1Opinion of the Court
STORY, Circuit Justice.
As to the law applicable to the facts before the jury, I take it to be well settled, that a factor, in making sales of goods on consignment, is bound not only to good faith, but to reasonable diligence. It is not sufficient, that he has been guilty of no fraud, or of no gross negligence, which would carry with it the insignia of fraud. He is required to act with reasonable care and prudence in his employment, and exercise his judgment after proper inquiries and precautions. If he shut his eyes against the light, or sell to a parson, without inquiry, when ordinary…
2Cases cited3 opinions
- Pool v. C., B. & Q. R.United States Circuit Court · 1881
- Leverick v. MeigsNew York Supreme Court · 1824
- In re MayDistrict Court, E.D. Michigan · 1880
3Cited by18 opinions
- People v. . Dunbar Contracting Co.New York Court of Appeals · 1915
- Creek v. StateIndiana Supreme Court · 1865
- United States v. DavisU.S. Circuit Court for the District of Western Tennessee · 1900
- Charles v. Boston Elevated Railway Co.Massachusetts Supreme Judicial Court · 1918
- Smith v. ThompsonNew York Supreme Court · 1823
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