Morehead Banking Co. v. Morehead
Morehead Banking Co. v. Morehead
Dissenting Opinion
dissenting. The record in this appeal does not disclose the precise date of its commencement, but as early as 1893, and since then,including this appeal, it has been before this Court five times. It made its first appearance at Spring Term, 1895, and is reported in 116 N. C., 410. In that appeal, Justice Aveey delivered the opinion of the Court, which was concurred in by the entire Court, it being constituted as now, with the exception of Justice Douglas. It was held in that opinion that the defendant Morehead was personally liable for this debt — the Court using this language: (Syllabus) — “Where an executor executed a note in his representative capacity for money borrowed and used for the purpose of paying debts of the' testator, the estate is not liable, but the executor is personally liable therefor, and this is so notwithstanding the fact that the lender knew for what purpose the money was borrowed and how it was used. In such case the executor takes the risk of being reimbursed the amount of the note out of the estate on a final settlement.”
The next time it was here was at February Term, 1898, and is reported in 122 N. C., 318. The opinion of the Court upon this appeal was delivered by Justice Montgomery., who, speaking for the full Court as now constituted, except Justice Clark, who did not sit in the case, said, (quoting from the syllabus) : “The promissory note of an administrator or executor, as such, founded upon tire consideration of forbearance or the possession of assets will hind him in his individual capacity; hence, whore an executrix, as such, executed a new note to a bank in consideration of its taking up and paying the old note, she is individually liable thereon.” The Court further holds in this opinion (on p. 324), as follows: “In our case there was constant forbearance on tire part of the plaintiff, and there were assets in the hands of the executrix, at the time of the execution of the note, and at the time of the trial.” Upon the trial of the case from which this appeal was taken (TimberlaJce, /.), the Court gave judgment for the defendant Morehead, holding that she was not personally liable for anything on account of the note sued on. To this
Judgment offered by the plaintiff: “In this action, upon the issues submitted, the jury having found that the note was understood and intended to be made by the. defendant Mrs. L. L. Morehead in her representative capacity, and that the provision that she should not be personally bound was not omitted by mistake, it is now adjudged that in accordance with the opinion of the Supreme Court filed in this action, the feme defendant is answerable in her individual capacity, and that the plaintiff, Morehead Banking Co., recover of Mrs. L. L. Morehead individually the sum of $5,000, with interest at 8 per cent from September 19, 1893, and the costs of this action to be taxed by the Clerk.” To the refusal of the Court to sign this judgment, the defendants Duke and Green excepted and appealed. And upon this appeal (122 N. C., 318) the Court held that there was error in the Court’s signing the judgment it did sign, discharging the defendant Morehead from personal liability. It also held (on pp. 325 and 320), that the Court should have signed the judgment tendered by the plaintiff and quoted above, and that it committed error in not doing so.
The next time it was here was upon a petition to rehear the opinion of February Term, 1898, (122 N. C., 318). This petition was considered at February Team, 1899, and reported in 124 N. C., 622. In that opinion it is said: “There being-no disputed facts in this case, it becomes a question; of law for the Court, and upon the. undisputed facts, the Court should have directed'a personal judgment to be entered against the defendant Morehead. As that judgment should have been
This time it comes here on the application, of the defendant Morehead to have the matter reopened, that she may have an opportunity of showing that Duke and Green are not her sureties, but that they are principals. This motion is made upon her affidavit stating that she is advised and believes that the. defendant Duke purchased the judgment in 1895, and had it assigned to one Pugh for his use; that she never requested either Duke or Green to sign said note as her surety; that they signed the same of their own volition, and, therefore, are not her sureties. Green is dead, but Duke files an affidavit in which he states that he did purchase .the judgment by giving his individual note for the same, which he has not ]iaid; that he was forced to do this to prevent his property from being sold under said judgment; but he denies the allegation that he was not solicited to sign said note as her suerty, and alleges that he was solicited to do so by Mr. Avery, a near relation and friend of the defendant More head. In addition to the defendant Duke’s affidavit, he offers the evidence of the defendant Morehead, given on the trial of the case, and stated -in the case on appeal as follows: “Mrs. Morehead. — Don’t know what bank held Exhibit ‘A,’
The Court below says: “Having carefully examined the affidavits, the Court- finds that the amended answer of Lucy L. Morehead is based upon a meritorious defense, inasmuch as she desires to submit an issue to a jury as to whether she !s a co-principal with the other defendants. The presiding Judge is willing to exercise his discretion and permit said amended answer to be filed, but he is of the opinion' that he has no power now, after issues found- at a prior term, and under the decision of the Supreme Court. The motion is denied upon the want of power' solely.”
And the opinion of the Court at this term says: “If a new trial could be ordered by Hie Superior-Court'after' a final decision in the Supreme Court, surely such a motion as the one made in this case ought to have been granted. Error.”
Whether the defendant Duke has become -the equitable owner of the judgment or not does not affect the status of the defendant Morehead. She stands now just as she did before such purchase. If she was principal, and Duke and Green sureties, before this purchase, she is so now. If she and Duke and Green were co-principals before, they are so now.
We see things differently. I must say that from these facts I am not impressed with the merits of the motion. It is said in the opinión of the Court that “she had contested her individual liability on the note, and the judgment of the Superior Court was in her favor. There was no need then on her part, at the time of the rendition of judgment in the Superior Court, to make a motion to- have the ultimate rights between Green and Duke and herself determined. She, at the first moment, after her personal liability on the note had been fixed by judicial decree, desired, not to change or modify the decision of the Supreme Court, but simply to have the rights and obligations of each of the defendants * * * settled
We may not understand this argument of the Court, but as we understand it, it is that when the estate of Eugene More-head was liable, but not Mrs. Marehead, it made no difference whether she was principal and Duke and Green were sureties, or not. Or, in other words, she was willing that this question might be decided upon her evidence, when she swore that she gave "the note, and Dulce and Green were sureties;” if the estate alone is liable. But, if she is to be held personally liable, then Duke and Green are principals. It does not seem to me that such reasoning as this is sound,*and I can not adopt it. But it should be remembered that it was held at Spring-Term, 1895, (116 N. C., 410), that Mrs. Morehead was personally liable, and she has had ever since then toi make this defense, and the case has been tried three times since that decision. And it seems to me that if she had any such defense as this, it has been within her personal knowledge and should have been made before there was a final determination of the case, upon the pleadings existing for six or seven years, and the facts elicited on so many trials.
But was the Judge not correct when, he said he had no-power to make the order? It is conceded in the opinion of the Court that the Superior Court has no power to disobey' the judgment of the Supreme Court, and this is sustained by a great number of authorities. But as this is conceded in the-opinion of the Court, I feel that it is not necessary to- cite
But the defendant Morehead says that judgment has been signed and she does not complain of that, and does, not ask to set aside or modify it. Is this not arguing in a circle? If this is the end of the matter, why not let it be the end ? If it is the end, how can anything further be done ? If no other judgment is to be rendered, why make the motion, to. file an ■additional answer ? * It seems to me that these interrogatories .and any truthful answer that can be given to them, show the absurdity of the motion to be allowed to file a, new answer.
It is taught in the horn books of the law that there must be an end to' litigation sometime, and this motion looks to me like trifling with the Court. Black on Judgments, vol. 2, par. 500, is as follows: “That the solemn and deliberate sentence of the law, pronounced by its appointed organs upon a disputed fact or state of facts, should be regarded as a final and conclusive determination of the question litigated, and should forever set the controversy at rest, is a rule common -.to all civilized systems of jurisprudence. But it is more than :a mere rule of law. It is more even than an important principle of public policy. It is not too much to. say that this maxim is a fundamental conception in the organization of every jural society. ' Eor unless every judgment should at some point become final, and have the quality of establishing
This doctrine is held by our own Court in an unbroken current of opinions, and by eveüy Court whose opinions I have-consulted ; and I do not believe, any opinion can be found to the contrary. Shehan v. Malone, 12 N. C., 59; In re Griffin, 98 N. C., 225; Dobson v. Simonton, 100 N. C., 56; Calvert v. Peebles, 82 N. C., 334. The fact that there is a judgment against the defendant Morehead as well as against Duke and Green, does not preclude her from showing that she is only a surety to the debt or that Duke and Green are co-principals with her, if such is the fact. But as this was not shown while the action was pending and before final judgment, it can-only be shown in another action brought for that purpose. 2 Black on Judgnents, par. 599; 1 Freeman on Judgments, par. 158. The same is true with regard to our own reported cases, for contribution among joint debtors, whether sureties or principals. I do not believe a single case can be found to the contrary.
The opinion of the Court is put on Black v. Black, 111 N. C. 300. I do not think this case justifies the opinion. It is not in harmony with Shehan v. Wilson and Calvert v. Peebles, supra, and other cases. But I think there is quite a difference between giving a new trial upon newly discovered evidence — a party’s last chance — and allowing a defendant after final judgment to file a new answer, and raise new issues not raised or tried in the action while pending. Facts and issues must be properly raised and tried in an orderly way, and this can not be done in a -suit after it is ended. The
Opinion of the Court
This action was originally commenced by tire plaintiff against Lucy L. Morehead, executrix of Eugene Morehead, deceased, Lucy L. Morehead, individually, B. L. Duke and Lucius Green, for the recovery of an amount due on a note, payable to the plaintiff. The note was the joint and several obligation, of Mrs. Morehead, executrix, Duke and Green, and made no allusion as to who was principal, and who was surety, if such relationship existed. It was sought to charge Mrs. Morehead personally because of her having executed the note as executrix. A judgment by default was taken against Green and Duke at June Term, 1894-, of Durham Superior Court. After extended litigation on the part of Mrs. Morehead, this Coui*t decided at February Term, 1899, that she was liable on the bond individually. A rehearing was granted, and the petition dismissed. At Oct< her Term, 1899, of the Superior Court, upon motion for
The defendant moved further, that the Court should pass upon and find the facts as to whether the defendants, Duke and Green, are her sureties or her co-principals, and to- embody such finding in the judgment according to- The Code, sec. 424, sub-sec. 1. This his Honor declined to do-- on the ground of want of power.
The matter which the defendant Morehe-a-d desired to have determined by the amendment raised an issue of fact, and his Honor properly ruled that he could not try that without the consent of all parties; and Duke had answered the statements contained in her motion, and had denied them all, except that he had purchased the judgment.
It may turn out on- thei trial that Mrs. Morehead is principal, and that Duke and Green are sureties to her, or that all are joint principals as between themselves. In Black v. Black, 111 N. C., 300, it was decided that, after a final decree in the Supreme Court, a motion for a new trial upon newly discovered evidence could be made, and that it should be made in the Superior C'ouyt. If a new trial could be ordered by the Superior Court after a final decision in the Supreme Court surely such a motion as the one made in this case ought to have been granted, if the Judge in his discretion thought it proper to grant it.
Error.
Reference
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- MOREHEAD BANKING CO. v. Mrs. L. L. MOREHEAD, and Others
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