Tioga County Savings & Trust Co. ex rel. Klock v. Gates
Tioga County Savings & Trust Co. ex rel. Klock v. Gates
Opinion of the Court
Opinion by
The defendant, Gates, gave to the Tioga County Savings and Trust Company, the legal plaintiff, his promissory note, dated February 24, 1910, for $2,900, containing a warrant of attorney authorizing a confession of judgment thereon. Sometime in the latter part of the year 1913, the note was assigned to M. L. Klock, the use-plaintiff, who entered judgment thereon in the Court of Common Pleas of Tioga County on March 26,1915, and testatum writs of fi. fa. were issued and levied on the
The use-plaintiff filed an answer in which he admits the entry of the judgment and the issuing of the executions, neither affirms nor denies the allegations contained in the petition relating to the proceedings and alleged discharge of the defendant in bankruptcy in the United States Court for the Middle District of Pennsylvania, and craves proof of the statements thereof in the petition. The answer avers that sometime subsequent to the date of the discharge in bankruptcy the defendant made a new, distinct and unequivocal oral promise to the legal plaintiff to pay the note in full with interest, and pursuant to said promise made two payments on the note in 1913, and subsequently the note was assigned to the use-plaintiff.
The defendant filed a replication to the answer denying that since his discharge in bankruptcy he made a
The defendant laid sufficient grounds in his petition for opening the judgment and giving him an opportunity to plead his discharge in bankruptcy as a defense to the indebtedness secured by the judgment note. It is averred that the note was given in 1910, and that the defendant filed his petition in voluntary bankruptcy in July, 1912, and was discharged in October, 1912, from all debts existing on July 17th of that year. It is also averred that the plaintiff’s indebtedness was provable against defendant’s estate, and was, therefore, released or' discharged. These facts were admitted or established to the satisfaction of the court, and the defendant then had made out a case which required the court to open the judgment and give him an opportunity to plead his discharge: Wise’s App., 99 Pa. 193; Adams’s App., 101 Pa. 471. The last cited case was an appeal from a decree discharging a rule to show cause why the judgment should not be opened and the defendant permitted to plead his discharge in bankruptcy as a defense to the debt secured by the bond on which the judgment was confessed. In reversing the order of the court discharging the rule, Mr. Justice Sterrett, delivering the opinion, said (p. 173) : “In the absence of proof sufficient to avoid its effect, the certificate of discharge given in evidence by appellant, coupled with the fact that the debt in question was provable against his estate, was quite sufficient to sustain a strictly legal defense to the bond in suit; and it appears to us that no sufficient reason
The answer also alleges that subsequent to the discharge the defendant made a new oral promise to pay the note and also made payments thereon. The replication, made under oath by the defendant, denies that he made any promise to pay or made any payments on the note. The learned judge assumed the functions of the jury and determined the question on the testimony submitted on the hearing. Whether the promise was made, and whether, as alleged in the answer and found by the court, it was clear, distinct, unequivocal and without qualification, depended upon the oral testimony of witnesses, and we have ruled time and again that in such cases the credibility of the witnesses is for the jury, and, therefore the question should be submitted to that tribunal. The averment in the answer that a new promise
The learned court found, under the evidence, there was a new promise to pay the indebtedness made after the discharge in bankruptcy, and proceeded to determine the effect of it. We must defer the solution of this question until it is raised by facts found by the jury on the trial of the issue after the judgment has been opened and it is properly presented here for decision. What legal questions may be raised, on the trial of the cause, we cannot anticipate and undertake to decide at this time. We may suggest, however, that on principle and under our own decisions the question of the effect of a.subsequent oral promise to pay a debt released by a discharge in bankruptcy seems to invite but little controversy.
The judgment is regular on its face, and the order refusing to strike it from the record is, therefore, right and is affirmed. The order discharging the rule to open the judgment is reversed, the rule is reinstated and made absolute, and a procedendo awarded.
Reference
- Full Case Name
- Tioga County Savings and Trust Company for use of M. L. Klock v. Gates
- Status
- Published
- Syllabus
- Promissory notes — Judgment note — Defenses—Bankruptcy—Discharge — Subsequent promise to pay — Judgments—Rule to open— Rule to strike off — Practice, G. P. 1. Where the question whether a promise was made by a bankrupt subsequent to his discharge to pay a debt created prior to the adjudication of bankruptcy, and whether such promise was clear, distinct, unequivocal and without qualification, depends upon the oral testimony of witnesses, the question should be submitted to a jury. 2. A petition for a rule to show cause why a judgment entered on a promissory note by virtue of a warrant of attorney should not be opened and defendant le.t into a defense, averred that subsequent to the execution of the note defendant was adjudicated a bankrupt and was finally discharged. Plaintiff filed an answer averring that subsequent to the date of his discharge defendant made a new, distinct and unequivocal oral promise to pay the note and thereafter made payments thereon. Defendant’s replication denied both the subsequent promise to pay and that payments had been thereafter made on account, and averred that plaintiff’s right of action, if any, was on the alleged new promise. Held, the lower court erred in dismissing the petition, and the rule was reinstated and made absolute. 3. In such case, where the judgment was regular on its face, the court did not err in refusing to strike it off.