Grahame v Grahame

• Jurisdiction: Ireland
• Judgment Date: 12 January 1887
• Date: 12 January 1887
• Court: Chancery Division (Ireland)

CHANCERY DIVISION.

GRAHAME

and

GRAHAME.

Ulster Bank v. Synnott Ir. R. 5 Eq. 595.

Howell v. JonesENR 1 C. M. & R. 97.

Rees v. Berrington 2 Ves. Jun. 540.

Samuell v. HowarthENR 3 Mer. 272.

White v. BlakeENR 1 Y. & C. Ex. 420.

Petty v. CookeELR L. R. 6 Q. B. 790.

Swire v. RedmanELR 1 Q. B. D. 541.

Mills v. Alderbury GuardiansENR 3 Ex. 590.

Bellairs v. EbsworthENR 3 Camp. 53.

Polak v. EverettELR 1 Q. B. D. 669.

Dowden v. LevisUNK 14 L. R. Ir. 313.

Holme v. BrunskillELR 3 Q. B. D. 495.

Cross v. SpriggENR 2 Mac. & G. 113.

Kearslake v. MorganENR 2 T. R. 513.

Stedman v. GoochENR 1 Esp. 3.

Belshaw v. BushENR 11 C. B. 191, 201.

Mockett v. AmesUNK 23 L. T. (N. S.) 729.

Samuell v. HowarthENR 3 Mer. 272.

and Howell v. JonesENR 1 C. M. & R. 97.

Guarantee to Bank for advances — Parol evidence — Discounting bills and notes — Surety.

Tot. XIX.] CHANCERY DIVISION. 249 GRAHAWF1 GRAHAVE: V.-C. 1886. 'Guarantee to Bank for advances-Parol evidence-Discounting bills and Dec. 1, 2. notes-Surety. 1887. Jan. 12. G., knowing that his son C., who was a stock-broker in London, required advances for the purpose of his business, gave to a Bank a letter of guarantee, undertaking to guarantee any advances made to C. to the extent of £1000. After the death of G., the Bank sought to prove on his estate in respect of four items :-1, a promissory note of C. to the Bank for £440, dated the 30th August, 1880, at six months ; 2, a sum of £32, balance due on a bill of ex-.change drawn by D., and accepted by E., dated the 6th October, 1880, at six months ; 3, a promissory note for £490 of B. to the Bank, dated the 18th October, 1880, at six months ; and, 4, £7 6s. 6d., the overdraft of C.'s current account. The promissory note for £440 had been renewed more than once, and this note, and the renewals, and the bill of exchange had been placed to the credit of C.'s account with the Bank while current, and transferred to the debit side of his account when due, discount being charged in eases of renewal to C.'s account. C. drew upon the Bank to the full amount, for which he was thus credited. C.'s name was not on the bill of exchange ; but the Bank cashed it •on his guarantee, and the proceeds were placed to C.'s credit. The promissory note for £490 represented a note given to the Bank by B. some years previously to the date of G.'s guarantee, the amount of which had been then advanced to C. No entry of this note or its renewals appeared in C.'s -current account, although the amount of the discounts on it were charged : Held (1), that, to aid in the construction of the guarantee, parol evidence was admissible of the circumstances under which it was given; (2) That, under the circumstances, the guarantee was a continuing guaranÂtee, extending to advances made after its date ; (3) That " advances " was not confined to cash advances or overdrafts, but included the proceeds of bills or notes discounted by the Bank, and placed to 'C.'s credit ; (4) That the right of the Bank to sue on bills and notes being suspended during their currency was not a giving of time within the rule which disÂcharges a surety ; but that, whether each renewal was equivalent to a fresh and independent advance or not, the amount advanced by the Bank to C. was within the guarantee ; (5) That the Bank could not sustain against G.'s estate a claim upon foot of the note for £490. 250 LAW REPORTS (IRELAND). [L. R. L V.-C. ADJOURNED SUMMONS, to adjudicate on the claim of the 1886. National Bank. GRAHAME The action was brought to administer the assets of George GRAHAME. Grahame, and, under the posting for creditors, the National Bank had sent in a claim as under. George Grahame, on the 7th February, 1879, gave a guarantee-to the National Bank, for advances to his son, in the following-form :- "7th February, 1879. " I hereby undertake to guarantee to the National Bank any advances• made to my son Charles James Grahame, of the London Stock Exchange, to. the extent of £1000. " GEORGE GRAITAME." The particulars of the Bank's claim was made up of four items :- 1880. Aug. 20. (1) Promissory note of this date, Charles James Grahame to the National Bank (Limited), £ 8. d. payable on the 23rd February, 1881, .. 440 0 0. To interest thereon, from the 23rd Feb ruary, 1881, to the 1st July, 1886, at ff 5 per cent., .. Oct. 6. (2) Amount of draft of Wm. Doyle upon Hans Esser, .. £62 0 0 127 14 3, Less paid on account, .. 30 0 0 32 0 0, To interest thereon from 9th April, 1881, to 1st July, 1886, at like rate, .. 8 7 3. YI Oet. 18. (3) Amount of promissory note, Thomas A. Bailey to the National Bank (Limited), at six months, To interest on said sum of £490, from 21st. 490 0 O. April, 1881, to 1st July, 1886, at like rate, .. • • 137 513. ,, Nov. 11. (4) Amount of overdraft on current account of Charles James Grahame with Bank, .. 7 6 6. To interest thereon from 11th November, 1880, to 1st July, 1886, at like rate, .. 2 1 4 Total, .. £1244 14 VoL. XIX.] CHANCERY DIVISION. 251 Charles James Grahame, the debtor, had filed an affidavit, to v.-C. prove that the letter of guarantee was prepared by a clerk of his, 1886. and it was intended to include, not only present, but future GRAHAMS v. advances, and that the words " or to be made " were omitted by GRAHAME. accident. He was at the time starting in business on the Stock Exchange, which his father knew, and that he required advances for the purpose of business. The Bank proved that the second item was a debt of Charles James Grahame, and the amount raised upon the bill was advanced...