Pinney v. French
Pinney v. French
Opinion of the Court
The opinion of the court was delivered by
This was an action of replevin brought to recover the possession of certain personal property that had been mortgaged by Charles Whited to S. P.. French to secure an indebtedness of $600.
“Subsequent to the execution of said_ notes and mortgages, the said Whited paid to the said S. P. French the sum of $200, which was applied in part payment of one of the notes secured by the mortgage to the defendant. •
“Some five months after this payment of $200 had been made and applied as aforesaid, French and Whited mutually agreed that this sum of $200 should not be considered as applied to the note where it had been applied when paid, but that they would consider the payment as applied on another note held by French against Whited that was not secured by either of the chattel mortgages above mentioned. ”
The trial court held that the application of payment could be, and was-, changed by the mutual agreement of these parties.
It was competent for Whited and French, at the time the payment was made, to fix the application of it, and nQ one else could interfere or compel a different application from that agreed on by them. Ordinarily, a debtor and creditor can, by mutual agreement, change an application of payment previously made, but they can never do so where such a change would affect or invade the rights of others. The application was in fact made in this case ; there was an express stipulation that it should be applied on the secured note.
It follows that the judgment must be modified, and. the cause remanded with instructions to enter judgment in favor of the plaintiff in error, on the matter in controversy.
Reference
- Full Case Name
- H. F. Pinney v. S. P. French
- Cited By
- 6 cases
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- Syllabus
- SYLLABUS BY THE COURT. Promissory Notes — Subsequent Change in Application of Payment. A debtor owed a creditor on two promissory notes, one secured by mortgage on personal property, the other unsecured. The same debtor had given to another creditor a promissory note secured by a second mortgage on the same-property. The debtor made a payment to the first creditor, which was applied on his secured note. Five months later the debtor and the first creditor undertook, by mutual agreement, to change the application of the payment from the secured to the unsecured note. Held, that the change of application could not be made to the prejudice of the rights of the second creditor without his consent.