Bank of South Carolina v. Bowie
Bank of South Carolina v. Bowie
Opinion of the Court
delivered the opinion of the Court.
This is the same case in which heretofore a motion was made to set aside the judgment, as irregular, for the interest or excess above $11721 11; which motion was refused, and an appeal from the refusal dismissed. In the opinion then given it is said, “ The case was one in which it was clearly proper that interest should be allowed.” “ The jury have ascertained and assessed the sum for which the defendant was liable on the 16th February, 1836, from which date they allow interest, and the Court has only to direct the Clerk to compute the interest.” If it had not then appeared that the case was a proper one for the allowance of interest, eo nomi-ne, the Court would have treated the finding of interest as a mere nullity, according to the course which was taken in Holmes v. Misroom and Ancrum v. Sloan. The defendant, by the motion, from the refusal of which he now appeals, in effect, (as I think will appear,) objects again to the plaintiff’s recovery of interest eo nomine ; but he now confines his objection to the interest which has accrued since the judgment, and attacks the execution instead of the judgment. His argument has been earnestly pressed, and deserves careful examination.
Without copies of papers, the following summary will shew the true state of the case. The bond by Bowie and several sureties was in the penalty of $20,000, conditioned that Bowie “ shall faithfully discharge the funds of the said Bank, which may be placed in his hands, for the purpose of discounting such drafts as he may be authorized, &c. — and shall faithfully account to the said Bank for all the funds placed in his hands for the purposes intended in the discharge of the duties
A correct mode of entering the judgment would have been, (after a postea setting forth the verdict of the plaintiff upon the issues made, the submission of the condition “ and the special circumstances” to the jury, and the assessment of damages) to have entered, ideo consideratum est, that the plaintiff recover the penalty and costs, and that the judgment for “ the penalty stand as security for the sum assessed and costs.”
A correct form for th efi.fa. would have been, after recital of judgment recovered for the penalty, to stand as security for the sum assessed and costs, to have directed the levy of $13,635 55 and costs, and also (under the Act of 1815,) of ^ie interes£ on $ 11,721 11 from 18th July, 1838, until satisfaction.
But the forms which the plaintiff adopted attain the same end, and they could now be amended by order of the Court, if there was substantial need of amendment; if interest be collected after the judgment, they have required from the defendant nothing more than the most precise regularity would have required, and on that head there is no occasion for complaint.
The right to collect the interest now in question does not exist if it is not given by the Act of 1815.
Every bond which is “for things other than the payment of money,” must, by the Act of 1792, be submitted to a jury “ which shall assess the debt or damages actually due.” It does not follow thence that in every such case interest is not allowed eo nomine, but is only resorted to by the jury at their discretion as a measure of damages, and that therefore the principal sum upon which the jury has calculated interest can in no such case be an interest-bearing demand.
That the recovery is of damages signifies nothing, for in every action of covenant, even every action of assumpsit, the recovery is only of damages. But the jury may assess “ debt or damages,” and where they have found a sum “ actually due” which bears interest, it might, if necessary, be always concluded that they Jr ad found a debt, even if they called it damages.
That the aid of a jury has been invoked, and reference to the Clerk for ascertainment of the sum due could not have been made under the Act of 1809, is equally indecisive: — for the unwritten acceptance of a bill of exchange cannot be referred to the Clerk, nor can a demand for money had and received, where there is no written acknowledgment, nor many other demands which when ascertained certainly bear interest. A bond conditioned for payment of a sum certain at a day certain requires no jury; but even a bond for payment of money only, if either the sum to be paid or the time of
In recoveries upon bonds, where assessment is made under the Act of 1792, it depends upon the nature of the covenant, or thing to which the obligor is bound, and thence upon the nature of the recovery, whether the Act of 1815 is applicable. We must distinguish between cases where the law in a certain state of facts found to exist, requires the jury to take interest as the measure of damages, and other cases in which, within reasonable bounds of discretion, a greater or less measure may be adopted by the jury. If from the pleadings and verdict, or from the verdict alone unimpeached, it appears that interest eo nomine has been adopted as the measure prescribed by the law, then we may conclude that the state of facts was found to be such as required the jury to take that measure ; and we are not at liberty, simply because the bond was not a mere money bond, to presume that a demand was not an interest-bearing demand, which has been found, and properly found, to have borne interest before the verdict.
In debt, upon an administration bond, the bond is not a money bond, and it must be submitted to a jury for assessment of the sum actually due: the decree of the Ordinary is evidence and only evidence of the quantum of this sum due, or damages as generally called: yet a jury, satisfied of the truth . of the decree, has no right to take any other measure of damages ; and I believe no hesitation has in practice ever prevailed in collecting, under the Act of 1815, interest after judgment upon the principal sum of the damages assessed according to the decree. In like manner, in an action upon a sheriff’s bond, where the non-payment of money collected is suggested as a breach, the sum collected with interest from the time of demand, when the sum and the time have been ascertained by a jury, constitutes a measure of damages which cannot be departed from; and after judgment, as before it, the principal sum ascertained by the jury bears interest.
On the other hand, if a bond is for the performance of covenants requiring acts to be done or forborne, the breach of which is not capable of appreciation by any exaet calcula
In debt upon bond for the performance of covenants, the same rules as to interest apply which would be applicable to an action of covenant, brought upon the covenants, if they are contained in a separate obligation. Wherever interest eo nomine is before judgment allowed to attach to a principal as an incident, interest after judgment may be collected— provided that the quantum of the principal sum, and the fact of its having borne interest before judgment, appear with certainty from the verdict or other proceeding in the case. A covenant to pay or answer for a sum certain at a particular time constitutes a debt which may be recovered in an action of debt: but recovery of the same amount, under the name of damages, may be had in an action of covenant. A covenant to do an act, the breach of whiGh is measured by an exact rule, bears interest before judgment, and interest may be collected afterwards -. — (for knowing of the breach, the covenant- or knows how much principal and with interest from what day he should pay,) as a covenant to warrant title, the breach of which is measured by the price with interest from the time it was paid.
In various other cases of damages to be judged of according to circumstances, as well as in debt upon those bonds “ for things other than the payment of money,” of which the breach is incapable of exact measure, a jury may resort to a calculation of interest in framing their verdict; as in trover, interest on the value may be taken as the measure of hire:— but in every such case, the verdict must be for a fixed sum, and interest, eo nomine, although found, might be got rid of. Sometimes, where it can be perceived by the Court that in
But although it is a question of law whether in a given case interest shall be allowed, it often happens that some fact which decides the complexion of the case, and with it the question of interest, rests with the jury, and can be known only from their verdict giving or rejecting interest. Thus, if a promise to pay interest be alleged in an action on an open account for goods sold, and evidence of the promise be offered, the verdict, which fixes t.he sum of the account, if it finds interest shews that the promise has been established. After the verdict all proper instructions will be presumed to have been given to the jury: and if interest be found, and the verdict be in no way set aside or altered, and the presumption be not rebutted by the nature of the action or the proceedings therein, it will be presumed that the facts authorized the finding, and that the interest, which was found, was allowed by law before judgment, and may be collected after judgment.
In the case which is before us, the condition relates to money advanced to be disbursed and accounted for: if the pleadings had been correct the breach assigned would probably have been the neglect to pay a sum of money, which upon accounting had been found due from Bowie to the plaintiff. The verdict finding interest eo nomine was received on the Circuit, and has been sustained in the Court of Appeals— where it may be observed that, of the interest subsequent to the verdict, at least so much as accrued between the verdict and judgment, was actually involved in the point decided. The verdict then established that “ the debt or damages” consisted of money withheld under circumstances that imposed by law the duty of paying interest. <! The cause of action” is then shewn to have been “ interest bearingand of course interest on its principal sum may be collected until satisfaction be made.
The case of Thomas v. Wilson is supposed to be hostile to the conclusion here attained. Some of the argument of that case is so, but not the case itself: for there the judgment was rendered before the Act of 1815, and the verdict seems to have been for $500, without any mention of interest. What was the nature of the covenants there does not appear. It is there said that “ the Act of 1792 precludes the idea that bonds conditioned for the performance of covenants were contemplated by the Act of 1815, because the words of the Act
The motion is dismissed.
Motion refused.
A. A. 1815, 6 Statutes, 4.
An Act to authorize the collection of interest on judgments and decrees, and to remove the necessity of frequent revivals thereof.
Whereas it is reasonable and proper that all judgments and decrees of the Courts of Law and Equity in this State, should bear interest.
I. Be it enacted, by the Honorable the Senate and House of Representatives, now met and sitting in General Assembly, and by authority of the same, That all judgments and decrees ofthe Courts ofLaw or Equity of this State, hereafter to be obtained and rendered on way bond, judgment, bill, promissory note, or other cause of action bearing interest, the principal sum of the judgment, bond, bill, promissory note, or other cause of action, on which such judgment shall be so obtained and rendered, shall continue to bear the same interest as the original cause of action did bear before the entry of judgment thereon; and in the body of every execution hereafter to be issued on such judgment or decree, the sheriff or other officer who may be required to execute the same, shall be directed, by virtue of such execution, to levy the interest which shall accrue on the principal of said debt, obligation or other security on which the judgment or decree has or may be had or rendered, up to the day on which such levy shall be made, and satisfaction entered on said execution,
Case-law data current through December 31, 2025. Source: CourtListener bulk data.