Fresh v. Million
Fresh v. Million
Opinion of the Court
delivered the opinion of the court.
This was a bill in chancery brought by Daniel A. Million against James Fresh. The bill charges that the defendant James Fresh, was on the 30th day of January, 1838, indebted to the complainant in the sum of five hundred dollars, for which sum he executed his note payable
A summons was issued fo.r the' heirs of Samuel Allen, deceased, and the guardian of the minor heirs. This summons was served upon Fresh and some of the adults, two of them being returned not found.
The answer of Fresh admitted the execution of the deed of trust, but denied the extent of indebtedness claimed by Million. The answer states the transaction out of which the deed of trust originated, to have been as follows : In the year 1835, complainant loaned to defendant the sum of $400, upon which sum defendant agreed to pay 20 per cent, interest per annum; defendant then executed his notes to complainant for $400, the principal, and for $80,' the amount of usurious interest, each note being payable twelve months after date; that defendant paid the last note when it became due. That after the expiration of the first year, the loan was continued for another year upon the same terms, and an endorsement was made upon the bond to that effect. At the end of the second year defendant executed his note to complainant for $80, the amount of interest agreed upon for the- past year, and complainant then insisted on 25 per cent, per annum for the ensuing year. The defendant being pressed for money, acceded to the terms proposed, and executed his bond or note to complainant for $500, which included the original debt of $400, and the interest for one year at 25 per cent.
The defendant further avers in his' answer that complainant offered to release him from his liability as security for Samuel Allen, in a note given by said Allen to complainant for $300, if he would give a deed of trust to secure the payment of the said $500; that he executed the deed of trust referred to by complainant upon this consideration; that complainant refused to release him as security for said Allen, but sued defendant on said bond, arid compelled him to pay the full amount thereof, said Allen, the principal, being insolvent.
The defendant further stated, that soon after the execution of said bond for $5')0, complainant, at his own instance, mad.e an endorsement
The defendant then alleges that the complainant is justly indebted to him in the sum of $80 for usurious interest on the loan for $400*paid in 1836, and in the sum of $63 for goods, &c., and prays that these sums ..may be set off against the lawful demands of the complainant. Defendant insists on the protection of the statute against usury.
Afterwards the defendant filed a cross-bill, in which he prayed that his answer heretofore made, might-be considered a cross-bill. To this was appended fourteen interrogatories, relating to the charges of usury contained in the answer.
To this cross-bill complainant demurred, hut the demurrer being overruled, complainant filed his answer, in which he admitted the principal facts charged by the defendant in relation to the usury. In relation to the deed of trust, the complainant says: “ Defendant further states that for the consideration of the deed of trust, I would release him from the securityship .of Samuel Allen. Samuel Allen was then approaching bankruptcy, but I promised if he would give mea deed of trust that was satisfactory, I would release the defendant. Allen learning from me, as I was required to inform him, of the intention of his security, promised to do so at the same time and place, and he appeared there that day, but politely refused to give up land, alleging that he would borrow the money if it cost him 30 per cent, to take in his note, seeming very much affected at the intimation I had presented him from the defendant, though in a polite and friendly manner.”
The complainant denied that there was any usury in the note for $500, but stated that the sum of 100, included in the note for $500, was intended as a penalty to induce the defendant to pay the principal.
Upon the hearing the complainant filed as an exhibit in the cause, the note for $500, upon which was an endorsement, by which the complainant agreed to deduct the interest, in case the principal was paid before due.
The deposition of one Barr was read, in which Barr stated, that in a conversation with Million, the complainant, in relation to the transfer of a note due from witness to Allen, to said Million, the complainant said that Allen was not the man he took him to be, that he was not honest; that he. had loaned Allen money, with Fresh as his security, and he had loaned Fresh money with Allen for security; that he had
William Fresh, another witness, who was present at the execution of the deed of trust made by Fresh for Million’s benefit, stated that after the execution of the deed and bond, Million passed the old note for $400 to Fresh, and Fresh put it into the fire, observing, “ now, Allen, we stand each upon our own footing — no longer responsible for each other.” Thereupon Million observed, “ well, we’ll arrange Mr. Allen’s business to-morrow.”
The circuit court decreed, that so much of the answer and cross-bill of the defendant Fresh, as relates to the mortgage to Anderson and Glover, and so much thereof as seeks to set-off certain debts alleged to be due from said Million to said Fresh, be dismissed, and as to the other matters in the said original bill of complaint, and in said answer and cross-bill contained, the court finds that the actual amount of money loaned by said complainant to said Fresh, and which formed the consideration of the said note of five hundred dollars, was four hundred dollars, and that the remaining one hundred dollars was interest agreed to be paid by said defendant to complainant, and therefore decrees that the sum of seventy-six dollars, the amount of usurious interest on said note, be deducted from the sum of four hundred dollars, leaving a balance of $324, and that the said balance of $324 be paid to complainant, Million, together with the costs of suit, and that so much of the mortgaged land be sold as will raise money enough to pay the same.
The first objection to this decree is the want of service upon two of the heirs-of Samuel Allen, deceased, who were necessarily parties to the bill. This objection is conceded to be a substantial one; but it is insisted in this court, that inasmuch as the objection was not made in the circuit court, it is too late to make it here for the first time, our statute declaring that this court shall only decide upon such points as were decided by the inferior court.
In common law actions, where the .defendant objects to any step or proceeding in the cause, previous to the judgment, which proceeding appears upon the face of the record, he must move in arrest of judgment ; and without such motion, the error, if any has been committed, cannot be corrected by the Suprem’e Court. Davidson vs. Peck, 4 Mo. R. 446. But where the judgment itself is erroneous, as where the ac-
In the case now under consideration, the decree of the court is for the sale of land, and a sale made under the decree, it is obvious would not affect the title of the heirs of Allen, who were not served with process. The tendency of such a proceeding, must be to produce a sacrifice of the property of Fresh. If the objection affected only the rights of the complainants, ineffectual as it might be to convey the whole legal title, and the complainant consented, the case might be different. As it is, if the decree were in other respects correct, we should feel it our duty to send the case back, for the purpose of having all the necessary parties before the court.
But we think the decree is erroneous on the merits. The complainant asks the aid of the court to enforce a lien, which, according to the
The statement of the defendant, uncontradicted as it is by the complainant, is strongly corroborated by the two witnesses whose evidence is detailed in the statement of the cáse. Barr states that Million complained to him of the dishonesty of Allen, in not transferring to him a debt which Allen owed to the witness, and that he had discharged Fresh from his responsibility for Allen’s debt; that Allen and Fresh had each been indebted to him, and each security for the other; that he had agreed to discharge each from this responsibility for the others debt, if each would confess a judgment; that Allen had confessed judgment, and Fresh had executed a deed of trust under the same agreement.
The evidence of William Fresh is also confirmatory of this understanding. This witness was present when the deed of trust was executed, and Fresh distinctly declares in the presence and hearing of the complainant, that he and Allen were no longer responsible for each other. To this, complainant makes-no observation, except “that he would attend to Allen’s business to-morrow.”
From the statements of the parties, and the evidence above detailed we must infer that this deed of trust was obtained under a promise on
Reference
- Full Case Name
- FRESH v. MILLION
- Status
- Published