Justice v. Charles
Justice v. Charles
Opinion of the Court
This was an action of debt brought by Tlwmas Charles against Enoch P. and Henry Justice. The declaration contains three counts. The first is upon a promissory note for 250 dollars; the second upon a note made by the defendants in favor of tire plaintiff for 530 dollars, payable on demand and dated the 2d of February, 1842; and the third is for money had and received. The defendants pleaded the general issue to the whole declaration, and three special pleas. There was an issue of fact upon one of the special pleas, and demurrers were sustained to the others. It is not necessary, however, to notice these pleadings further, as there are no questions presented by them which do not equally well arise under the general issue. The cause was submitted to the Court for trial without the intervention of a jury, and there were a finding and judgment for the plaintiff for the sum of 750 dollars debt and 250 dollars damages, making in all 1,000 dollars, and the costs of the suit.
It appears by a bill of exceptions that, on the trial, the plaintiff introduced in evidence a note which reads as follows : “ $530. On demand we promise to pay to the order of Thomas Charles 530 dollars for value received, bearing ten per cent, interest. Milton, 2d Mo. 2d, 1842. —E. P. and H. Justice.” The defendants objected to the introduction of this note, but the objection was overruled.
The legal rate of interest in this state, at the date of the note for 530 dollars, was six per cent. It is enacted by the R. S. of 1843, c. 31, s. 29, that no contract for the payment of money with interest at a higher rate than six per cent, shall be rendered void in consequence of the agreement for such usurious interest, but that, whenever, in any action brought on such contract, it shall appear that usurious interest has been contracted for or received, the defendant shall recover his full costs in such suit, and the plaintiff shall only recover judgment for the principal sum due him without interest thereon, or if he shall have received any part thereof before the rendition of the judgment, the same shall be deducted from the principal sum, and judgment shall be rendered for the balance. It has been decided in Andrews v. Russell, 7 Blackf. 474, that this statute operates retrospectively so as to embrace contracts made before its passage, and it must, therefore, be considered applicable to the present case. There can then be no difficulty in ascertaining the amount the plaintiff was entitled to recover upon the note described in the second count, as it appeared that that note had been drawn payable with usurious interest. But it is contended by the plaintiff below, who is now the defendant in error,
The case of The Indianapolis Insurance Company v. Brown, 6 Blackf. 378, seems to be relied upon by the defendant in error to sustain the decision of the Court below upon this point. But that case is easily distinguishable from the present. In that suit a note given in consideration of the amount due upon a former note was held entirely void, and therefore the old note could not be considered cancelled. The case stood just as if no new note had been given, and on that ground it was decided that the old note could be given in evidence under the common counts. In the present case, the new note was valid. The plaintiff below, under the second count, was entitled to recover the principal without interest, but as the judgment was for a larger sum, being, as shown by the bill of exceptions, for 500 dollars with nearly four years’ interest and the costs of the suit, it was therefore erroneous.
It is contended, indeed, by the plaintiff in error, that the note for 530 dollars, payable with ten per cent, interest,
Remittitur entered by defendant.
The judgment is affirmed as to residue.
No costs here.
Reference
- Full Case Name
- Justice and Another v. Charles
- Status
- Published