Merchants' & Mechanics' Bank v. Coleman
Merchants' & Mechanics' Bank v. Coleman
Opinion of the Court
— The appellant instituted suit by summons and complaint against B. J. Higgins, and caused process of garnishment to be served on the appellees. The answer of the garnishees being contested, an issue was formed involving an inquiry as to the amount of their indebtedness to Higgins, a small indebtedness having been admitted in the answer. Coleman & Carroll purchased a stock of merchandise from Higgins, and by the terms of the contract promised to pay, as part of the consideration price, two notes held by Joel Carter and Miss Freeman, on which Higgins was surety for Tatum Bros. The controversy only extends to the question of indebtedness vel non to the amount of these notes. When this case was before us on a former appeal (77 Ala. 217), we held, that by the terms of the agreement between Higgins and the garnishees, the' ownership, pro tanto, of the unpaid purchase money vested in Carter and Miss Freeman, subject to renunciation by them ; that a primary obligation was imposed on the garnishees to pay them their demands, without reference to their want of knowledge of the contract, or want of opportunity to renounce or accept the stipulation in their favor ; and that Higgins’ right of action was thereby suspended. The agreed statement of facts, then shown by the record, recited that Coleman & Carroll paid the notes after they became due, and after the service of the garnishment, with.out stating the modes of payment. The record, as now presented, shows the manner in which the notes were paid, which, it is contended, is not in pursuance of the agreement, and that the effect is to constitute the garnishees debtors to Higgins, and to revive his right of aetion. The payment of the two notes having been made in different ways, and the legal effect being dependent on different principles, separate consideration is rendered necessary.
The note held by Carter was paid as follows : Suit being threatened against the garnishees, Coleman purchased in’
The note held by Miss Freeman was paid with money delivered to the garnishees by Wood, who was a co-surety with Higgins, with a request that they would use it in paying the note, which they did. Coleman & Carroll were not informed at the time from whom the money came, and gave Wood credit for the amount, ft is not shown that Wood was indebted to them, or wherefore, or on what account credit was given him for the money. In fact, the money was “furnished or loaned” by Higgins for the purpose of paying the note; if loaned, to whom does not appear. On this evidence the court, in the general charge, instructed the jury, that if a stranger had paid the note without any understanding or agreement with Coleman & Carroll, no liability would arise from them to such stranger; and if Higgins paid the note voluntarily, and not as agent or on account of Coleman & Carroll, he would occupy the same position as a stranger, and such voluntary payment would not make Coleman & Carroll his debtors. And, at the instance of the garnishees, the court further charged the jury: “ If Coleman & Carroll paid the liability to Miss Freeman and Carter in pursuance of their promise to Higgins, when they bought the goods, they can not be made liable to
The court also instructed the jury, that the garnishees were not liable, if Wood let them have the money, though by the arrangement they became liable to Wood or Higgins for its repayment. The defect in the charge consists in the proposition that it is immaterial whether the liability of the garnishees for the money furnished was to Wood or Higgins. If Higgins loaned the money to Wood, and he incurred a liability to repay it, and Wood afterwards loaned it to the garnishees, they binding themselves to pay or account to him, and not to Higgins, and the transaction is bona fide,— not a plan devised to avoid a direct and ostensible payment of tlie note by Higgins, — then the garnishees, having thus paid the note w'ith money borrowed from a stranger to the contract of sale, are not liable. But if the money was really furnished by Higgins, Wood incurring no obligation to repay if, and being the mere conduit between Higgins and the garnisbe.es, then tbe case falls witbin the rules we have stated as to the effect of a payment by Higgins, or of a loan of the money to tbe garnishees by him. If tbe garnishees are liable to Higgins for the money furnished, either by an express or implied promise, tbe plaintiff is entitled to recover tbe amount.
Tbe proper apjDÜcation of these principles will suffice for a determination of tbe liability of the garnishees under the issue formed, in whatever aspect the evidence may present tbe case.
Reversed and remanded.
Reference
- Full Case Name
- Merchants' & Mechanics' Bank v. Coleman & Carroll
- Status
- Published