President of the Bank of Wooster v. Stevens
President of the Bank of Wooster v. Stevens
Opinion of the Court
Hiram C. Stevens, William R. Chidester, and William H. Alden, executed their bond to the Bank of Wooster, with a power of attorney to confess judgment annexed, for a loan of money; Stevens being the principal, and Chidester and Alden sureties; and in March, 1837, judgment by confession, under the warrant of attorney, and without notice or process, was taken against them in the common pleas of Richland county. In October, 1849, suit was brought in the common pleas of Medina county, on the record of this judgment, and a new judgment obtained against the same defendants. In February, 1850, the original bill
This court then held, that the contract having been merged in the judgment, and a creditor’s bill brought to obtain satisfaction, th e parties to it were estopped, while it remained in force, .from, averring or proving illegality to have existed in the original obligation, for the purpose of impeaching the judgment, but at the same-time suggested that a cross-bill might be filed to set aside the judg- ■ ment, “ upon such terms as the relation of the defendants to the matter would entitle them to assume.”
The ease having been remanded for further proceedings, the sureties, in September, 1853, filed their cross-bill, seeking to impeach the original judgment for usury in the bond, but without averring-any tender or offer to pay the amount equitably due without the usury, and, whether they can be permitted to do this, or, in other words, whether a tender of such payment is not one of the “terms ” imposed by “ the relation of the defendants to the matter,” is the-question before us.
If the defendants had filed an original bill to impeach the judgment for usury, such bill would be bad on demurrer, unless it averred a tender of the amount due in equity. If this familiar-principle needs any support, it will be found to be abundantly sustained by the authorities cited by counsel for complainant. And we are of opinion that the same averment is necessary in a cross-bill filed for the same purpose. Fanning v. Dunham, 5 Johns. Ch. *145; Fulton Bank v. Beach, 1 Paige, 433; Story’s Eq. Pl., [266 secs. 630, 398; Welford’s Eq. Pl. 229, 230.
We can see no difference in principle between a case like this, where a bank takes the usurious security, and one w[iere a natural person takes a like-security in states where by law such securities-are declared void. In the one ease the security is void, because the law has never conferred the capacity or power to make such a contract ; and in the other, because the capacity in this respect natur
Nor is there any difference, in cases of this kind, between a prin-cipal and a surety in a usurious obligation; their rights and remedies are the same. Selzer v. Brock, 3 Ohio St. 305; Campbell v. Morrison, 7 Paige, 158. This case in no way conflicts with that of Corcoran & Riggs v. Hinton et al., decided at the present term; for in that case the complainants sought relief on a usurious contract .never established at law or merged in a judgment.
Cause remanded to the district court for further pvoceedings.
Reference
- Full Case Name
- The President, Directors, and Company of the Bank of Wooster v. Hiram C. Stevens, William H. Alden, and William R. Chidester
- Status
- Published