Smith v. Caldwell
Smith v. Caldwell
Opinion of the Court
The opinion of the Court was delivered by
A promissory note for $2,000, dated July 7th, 1855, payable to Miss Huffman, now the wife of S. M. Smith, one day after date, was signed “ C. Neuffer principal, 'John Caldwell security.” Neuffer paid $140 July 24th, 1856, and $1,800 March, 1860. Neuffer died. The statute of limitations was in 1861 suspended, and the suspension' continued throughout the late war. In October, 1866, this suit was commenced against Caldwell. The declaration is against Caldwell upon his several promise, just as it would have been if he had been sole maker of the note, no mention being made of Neuffer. The pleas were non assumpsit and the statute of limitations. The only evidence in reply to the pleas was proof of Caldwell’s signature to the note, and of the payments made by Neuffer as above mentioned, which were credited on the note.
The first payment made by Neuffer was within four
Our case of Silman vs. Silman, (2 Hill, 416,) decided that a promise to pay, made by one of two joint contractors before the expiration of the statutory period, bound the other, and continued the old contract for a new period of four years. We take occasion here to avail ourselves of the diligence which the appellant’s counsel in this case has exercised in searching the original records, to make more plain the report of that case, by stating that the payment was within four years from the maturity of the note, and was made by Feilding Silman, whose name was signed below that of Lawkin Silman.
On the other hand our case of Gowdy vs. Gillam, (6 Rich. 28,) held that the promise of one of three joint contractors made after the contract had been barred by the statute, would not bind the other two.
In the case now before us the plaintiffs contend that the old contract having been continued by the first new promise implied from the first payment, for four years from that time, with binding efficacy as to both joint contractors, the second new promise implied from the second payment within the first new period of vitality, is j ust as binding as was the first new promise. It will be seen that the effect might be to extend the power of one joint contractor over another to a great, if not indefinite extent. To uphold this would be contrary to the course of our decisions, consistently, as we believe, tending in a contrary direction since
The question concerning admissions made by one of various joint contractors, in respect to the statute of limitations, have been of late years much discussed in the Courts of England and of this country. We are not now inclined to enter into them, for we could onty repeat what has been said by others, and a full examination of the subject may be seen in the American edition of Smith’s Leading Cases, (1 vol. p. 318,) under the case of Whitcomb vs. Whiting. To that we refer, and also to cases in the State of Georgia, and to cases in the State of New York. (Cox vs. Bailey, 9 Ga. 467; lllinghash vs. Nourse, 14 Ga. 641; Hunter vs. Robertson, 30 Ga. 479; Van Kuren vs. Parmelee, 2 Coms. 2 N. Y. R. 523; Shoemaker vs. Benedict, 1 Kern. 11 N. Y. R. 180; Payne vs. Slate, 39 N. Y. R. 634.)
In all of that will however be found only the principles ■which should guide a decision, not a decision of the exact question now before us. Eor a decision we bold these propositions to be settled, viz.:
1. That the statute of limitations does not operate by raising a presumption of payment, but by creating a legal bar to the action. Our statute enacts that the action shall be commenced within the time limited “and not after.’’’
2. 'Jhat where the statutory period, counting from the original accrual of the cause of action, expired before commencement of the suit, a promise shown for the purpose of opposing the plea of the statute, is itself the true cause of action ; and this, whether such promise was made before or after the expiration of the period just mentioned. If before, the legal liability was its consideration; if after, the moral obligation. This proposition under the general form of pleading which is allowed, is in practice, unimportant, where the declaration is in assumpsit upon an executed*374 consideration ; but it is material in the declaration of the rights of parties, wherever the new promise, and that alone, stands unaffected by the statute; and from this proposition it follows that payment, admission, and the like, are but evidence of a promise to pay, and that whatever is said to revive a debt must operate through a promise expressed or implied.
3. That joint contractors, at the moment after the making of the contract, are like partners at the moment after the dissolution of their partnership, with this difference that partnership shows an actual community of interest not only in the partnership promise, but. in the subject and consideration ; whereas ordinary joint contractors have common interest in their promise, but may have no community of interest in the consideration, and where they stand known to the promisee as principal and surety, cannot be presumed to have such community.
4. That payment being but evidence, conclusively establishes indebtedness to the amount paid, and when made with direct reference to an ascertained indebtedness larger than this amount, without any contradictory circumstance, manifestly implies an acknowledgment of the balance and a promise to pay it: but that payment differs from admission as it may be made by a stranger, yet will extinguish liability pro tanto, or by a servant specially authorized to pay but not to admit, or by a co-obligor in opposition to express directions.
Starting from these propositions, which have our sanction, we inquire how Caldwell became bound by a payment which Neuffer made more than five years after the maturity of the note. He was bound, it is said, because this payment was within four years after a previous one which Neuffer had made, and from which according to Silman vs. Silman, the statute began to run for a new period. We understand the case of Silman vs. Silman to
The new promise made after the expiration of the first statutory period unquestionably binds him who made it. If reversing the case, the payment had been made by the
Considerations of the hardship to creditors where notes have been kept alive by repeated payments, urged on one side are balanced on the other side by hypothetical cases of equal hardship to sureties and other joint contractors, who after the lapse of many years may be crushed by old notes brought against them, which they supposed long before barred, but which had received continuous vitality from payments made by some insolvent joint contractor, which had not even been endorsed on the notes. The conclusion which this Court has attained will contribute towards the repose which the statute was designed to promote, and is at least consistent with the letter of the law.
It is therefore ordered that the verdict be set aside, and that a new trial be had.
Motion granted.
Statutes of limitation are designed to enforce diligence in the pursuit of remedies on the part of those having rights of action, and thus to promote the peace and repose of society by repressing litigation growing out of claims obscured by lapse of time and loss of evidence. Perhaps the tendency of judicial construction has been to treat them rather as rules of evidence, merely creating a presumption of fact which could be rebutted. Hence sprung the doctrine that an acknowledgment, whenever made, that the promise, &c. was still subsisting, gave a new statutory period of vitality to the original promise, &c., from the date of such acknowl
Eecently, however, a tendency has been developed on the part of Courts to return towards an enforcement of the statutes in their original design and true spirit. Thus it is now well settled doctrine that a several promise cannot, by a promise or an acknowledgment equivalent thereto made after the statutory lar has leen completed, give vitality to the original promise so as to make it in itself a cause of action; that in such case the original obligation, though no longer subsisting in law, yet thus admitted still to be undischarged, in fact constitutes a sufficient consideration to support the new promise, which itself becomes the cause of action, and must be declared upon accordingly. And hence it has followed, that the joint legal obligation of contractors having been discharged by operation of law after the completed bar, and so the unity or community of undertaking no longer subsisting, such new promise binds only him who makes it, and he may be sued thereon alone. The present decision goes one step further, — (I admit it is in the same direction,) — by holding that such promise or acknowledgment of one, if not made within the statutory
If I do not concur fully in the judgment of the Court
Motion granted.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.