Alliance First National Bank v. Spies
Alliance First National Bank v. Spies
Concurring Opinion
concurs in the judgment on the sole and controlling ground that in the Court of Common Pleas the defendants (1) filed a petition alleging grounds for vacation of the judgment and also asserting a valid defense, (2) proffered an answer alleging a valid defense, and (3) produced prima facie proof of their defense.
With or without the cognovit feature of the note, this preliminary procedure was sufficient to entitle the defendants to a suspension of the judgment and a complete trial of the cause on the issues presented by the pleadings. This is all they ask.
Opinion of the Court
Plaintiff argues that, since the warrant of attorney in the note expressly authorizes confession of judgment against defendants “at any time after this obligation becomes due” and authorizes the attorney so confessing “to execute a release of all errors or right of appeal, ’ ’ the attorney confessing judgment was authorized to confess such judgment after the statute of limitations had run; and that, even if it was error to do so, such attorney was authorized to waive such error.
If this argument of plaintiff were sustained, then,
It is well established that a warrant of attorney to confess judgment on an obligation, even if it does contain such provisions, does not authorize a confession of judgment after an action on the obligation has become barred by a statute of limitations. 31 American Jurisprudence, 111, Section 471.
Section 11221, General Code, provides:-
“An action upon a specialty or an agreement, contract or promise in writing shall be brought within fifteen years after the cause thereof accrued. ’ ’
Therefore, except for the payments claimed to have been made on the note, an action thereon would have-been barred when the petition of plaintiff in the instant case was filed.
However, Section 11223, General Code, provides:
“If payment has been made upon any demand founded on a contract, or a written acknowledgment thereof, or a promise to pay it has been made and signed by the party to be charged, an action may be brought thereon within the time herein limited, after such payment, acknowledgment or promise.”
In support of its position plaintiff argues (1) that, in the hearing on defendants’ petition to vacate the judgment, the burden of proof was on defendants to establish by a preponderance of the evidence (Bulkley v. Greene, 98 Ohio St., 55, 120 N. E., 216; Interstate Life Assurance Co. v. Raper, 78 Ohio St., 113, 84 N. E., 754) that the payments, which the notations on the note indicate were made within fifteen years of the filing of plaintiff’s petition, were not made
In our opinion, these arguments do not justify a reversal of the judgment rendered by the Court of Appeals.
Plaintiff can not prevail in any event unless mere payments by an obligor on a cognovit note operate not only to extend the time within which an action may be brought on the note for 15 years, as provided in Section 11223, General Code, but also to extend the time within which an attorney is authorised, by the warrant of attorney in such cognovit note, to confess a judgment against such obligor.
A warrant of attorney in a cognovit note, authorizing an attorney to confess judgment against the maker, is only a grant of authority by the maker as principal to such attorney to act as his agent in confessing such a judgment. Ordinarily, where one grants authority to another to act as his agent for him, the authority so granted may be revoked at any time and, if not revoked, must be exercised within a reasonable time. However, a warrant of attorney incorporat
Thus it is said by Mr. Chief Justice Marshall in the court’s opinion in Hunt v. Rousmanier’s Admrs., 8 Wheaton, 174, 201, 5 L. Ed., 589:
“As the power of one man to act for another depends on the will and license of that other, the power ceases when the will, or this permission, is withdrawn. The general rule, therefore, is, that a letter of attorney may, at any time, be revoked by the party who makes it; and is revoked by his death. But this general rule, which results from the nature of the act, has sustained some modification. Where a letter of attorney forms a part of a contract, and is a security for money, or for the performance of any act which is deemed valuable, it is generally made irrevocable in terms, or if not so, is deemed irrevocable in law. Although a letter of attorney depends, from its nature, on the will of the person making it, and may, in general, be recalled at*504 his will; yet, if he binds himself for a consideration, in terms, or by the nature of his contract, not to change his will, the law will not permit him to change it. Eousmanier, therefore, could not, during his life, by any act of his own, have revoked this letter of attorney. But does it retain its efficacy after his death? We think it does not. We think it well settled, that a power of attorney, though irrevocable during the life of the party, becomes extinct by his death. ’ ’
The implied agreement of the defendants, that the grant of authority involved in the cognovit provisions of the note should be irrevocable, is in an “agreement * * * in writing,” within the meaning of Section 11221, General Code, and so governed by that fifteen-year statute of limitations. However, Section 11223, General Code, does not provide for an extension of the time within which such warrant of attorney may be exercised. It deals with a ‘ ‘ demand ’ ’ upon which there may be a “payment,” and a “promise to pay” such a “demand.” It does not purport to deal with anything which would include a grant of power or authority to an agent or attorney to act on behalf of the grantor or an agreement not to revoke such grant.
Even if we assume that payments on a note may ever justify, without any statute, the implication of an agreement by the obligor on the note, which would include not only a new promise to pay the obligation evidenced thereby but a new grant of the power evidenced by the warrant of attorney and a new implied agreement that it will not be revoked, it is apparent that such agreement implied from mere payment represents at most an agreement ‘ ‘ not in writing. ’ ’ Such agreement would be governed by Section 11222, General Code, reading:
“An action upon a contract not in writing, express or implied, or upon a liability created by statute other than a forfeiture or penalty, shall be brought within six years after the cause thereof accrued. ’ ’
However, in our opinion, unless there is some statute giving it greater significance, part payment is significant, in operating to extend the statutory period of limitations, only because such part payment justifies the implication of a new promise. See Kerper v. Wood, 48 Ohio St., 613, 620, 29 N. E., 501, 15 L. R. A., 656 (“Payments are, at most, but evidence from which a promise may be inferred”); Marienthal v. Mosler, 16 Ohio St., 566, 570, 571; 1 Williston on Contracts (Rev. Ed.), 566, Section 174; 34 American Jurisprudence, 263, Section 333.
While the case of Commonwealth Loan Co., Inc., v. Firestine, 148 Ohio St., 133, 73 N. E. (2d), 501, 172 A. L. R., 993, might be distinguished on other grounds, it is sufficient to state that it is not applicable in the instant case because, as the findings of fact made by the trier of the facts in that case clearly indicated, the statutory period of limitations had not elapsed when the judgment was taken pursuant to the warrant of attorney.
Plaintiff contends that the ground for vacating the judgment, set forth in the defendants’ petition to vacate, was that the notations relative to payments on the note were “false and fraudulent,” and that defendants failed to establish such ground. However the petition to vacate, as well as the record before the filing of that petition, discloses the fact that the judgment was confessed pursuant to an authority which no longer existed. This clearly represented ground for vacation of the judgment pursuant to Section
Both parties concede that the Court of Appeals should not have ordered vacation of the judgment, but should merely have suspended it pending a trial upon the merits of the defenses set forth in the answer of the defendants. See Section 11636, General Code. The judgment of the Court of Appeals is therefore modified in that respect and as so modified is affirmed.
Judgment modified and, as modified, affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.