Cox v. Williams
Cox v. Williams
Opinion of the Court
.delivered the following opinion. This suit is brought by the endorser a negotiable note for the sum of 1950 which was made payable to Isaac Baldwin The defendant in his answer pleaded want of consideration or rather failure of the consideration, in consequence of which he made the promise to the payer of the note; and that it is subject to all objections in the hands of the plaintiff, to which it would have been liable in those of the original holder and payee.
The court below gave judgment in favor of the defendant, from which the plaintiff appealed.
In proceeding thus to investigate it, a concise history of the transactions which led to the execution of the note becomes necessary.
The appellant had a claim agaiant one L H. Gardner, which he placed in the hands of Baldwin, as attorney, to collect. This claim was in the hands of the agent at the time of the death of Gardner. The estate of the latter was sold at probate sale, and the widow of the intestate became the purchaser of a family of negroes, which made a part of the succession, for the price of 2450 dollars, and to secure payment, the present defendant bound himself as her surety. Afterwards he was dissatisfied with the conduct of Mrs. Gardner, in relation to the management of her pecuniary concerns,
We are however of opinion, that the introduction of this document, has no tendency to distinguish the present from the former case. It was made out before witnesses and deposited in the office of the judge of probates, as evidence of payment, or a release of the obligation, to the succession of the deceased, in consideration of having accepted a Iiew debtor in pursuance of the true spirit and meaning of our laws on the subject of delegation. In the case of Barron vs. How, reported in vol. 2, p. 144, this court held that an acknowledgment of a receipt of the promissory notes, of the person delegated, as payment, produced novation. This was nothing more
Concurring Opinion
I assent to the opinion just pronounced; but as there is a d ifference of opinion amongst the members of the court, in regard to a part of it, the law requires 1 should express mine.
I think that there cannot be better evidence of the partial or entire payment of a debt, than the express acknowledgment of the creditor, evidenced by his giving credit to his debtor.
If a planter send to his commission merchant a quantity of cotton to sell and a draft to receive, in order to discharge what he owes him for supplies to his farm, the merchant does not credit him with the proceeds of the cotton or draft, till they be actually received, or he means to take the cotton or draft on his own account. 1 think this is the universal practice. Till the cotton be sold and the amount received or the draft paid, the planter is not a creditor of the merchant, and nothing makes him so but the money coming to
In the case of Levy vs. the bank U. States, 1 Dallas, 234, the supreme court of Pennsylvania held that credit given by the bank in the plaintiff’s books, precluded the bank from saying that the check, the amount of which was credited, was a forged one, and that therefore the credit ought to be stricken out. When banks or merchants receive a draft or property on account of a customer, the amount is never carried out to the outer column, but inserted in an inner one. I consider credit given in the ledger as express evidence of a payment as a receipt in full. On an account current, nothing but the balance is due, and the maker is bound by every item with which he has credited his customer, unless errors be proved.
This case differs from that of Gordon & al. vs. Macarty. There a receipt was given for a note; here credit is given for the amount. The receipt was evidence of a liability to account: the credit of a payment.
Concurring Opinion
1 agree in the conclusion to which the majority of the court have arrived. The agent swears positively that the notes of ^ defendant were received from Mrs. Gardner, in full discharge of the claims held by him, against her, and her husband’s estate. The receipt on account now produced, which it appears was the only written instrument that passed between them, does not by any means contradict this statement. It on the contrary supports it.
But I cannot assent to the proposition contained in the opinion just delivered by the presiding judge of the court, “that proof which shews that credit has been given, on an account with the original debtor in consideration of a delegation made by him to his creditors, is evidence that the latter accepted the debt thus delegated in payments Our code requires that the discharge should be express. It is true, it is immaterial in what words that discharge is given, so that it is clearly expressed. But in my mind the mere act of giving credit on account, for the debt of another, remitted by the debtor, does not necessarily create an extinction of the original obligation, if the creditor retains that first given to him,
It is, therefore, ordered, adjudged, and decreed, that the judgment of the district court be avoided, reversed and annulled; and it is further ordered, adjudged and decreed, that the plaintiff and appellant do recover from the
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