Miller v. Klugh
Miller v. Klugh
Opinion of the Court
The opinion of the court was delivered by
It seems to us that the real question in the three cases, heard as one, was whether the cash advanced by the defendant, McHugh, to pay the balance due on the judgment in favor of Salinas & Son was a loan by him to Miller, or whether it was a payment on account of the land trade. If it was the former, then, clearly, the allegation of payment could not have been sustained and the result of the judgment below was correct. But if, on the other hand, it was not a loan, but was, as appellants contend, the cash payment on the land trade, then, it seems to us, that the judgment below cannot he sustained. This question the Circuit Judge declined to consider, and, therefore, we think the case should go back for the purpose of having that question determined. It is very true that the special master did consider this question and determined it adversely to the appellants; but upon exceptions to his report, the Circuit Judge held that, under the pleadings, he could not consider it, and, therefore, there has been no adjudication of what we regard the vital issue in the case,
Suppose Miller, with a view to raise money to pay off the balance due on the judgment, had sold a horse to McHugh for cash, warranting the title to and soundness of the animal, and, for the purpose of securing McHugh against any loss by the breach of such warranty, the judgment had been assigned to him, surely McHugh would not have been permitted to enforce the judgment, without showing that there had been a breach of the warranty. So here, if the nature of the transaction be such as alleged by Miller, it does not seem to us that McHugh could be permitted to enforce the judgment, if it was shown, as it seems to have been, that Miller duly tendered titles for the land. It seems to us, therefore, that it was a mistake to suppose that Miller’s defence of payment rested upon his right to a decree for the specific performance of a contract for the sale- of land, but that it rested
As to the other points involved, we concur in the conclusion reached by the Chief Justice in his separate opinion.
The judgment of this court is, that the judgment of the Circuit Court, in so far as it conflicts with these views, be reversed, and that the ease be remanded for a new trial, so that the issue herein suggested may be determined, and such further proceedings had as may be necessary to carry out the views herein announced.
The question made in the complaints was payment, and want of title in McHugh, because of said payment. The injunction was asked for on these grounds and no other. The issue between the parties was made up upon these grounds and no other. The plaintiffs’ cause of action was based entirely upon the allegation of payment, and the consequent want of interest in the defendant, as the foundation for the injunction demanded. Under these circumstances it is not surprising that his honor, Judge Pressley, hesitated to consider under the original pleadings the testimony offered by the plaintiffs on the subject of the alleged land trade. He, no doubt, regarded such testimony as irrelevant to the issue joined. Because, even admitting all that was claimed by plaintiffs, it did not prove payment and extinguishment of the judgment. On the contrary, by said claim the judgment was to be kept open and assigned to McHugh to secure the amount advanced by him, at least until the land trade was fully consummated. It seems to us that the plaintiffs’ cause of action in reference to that matter was for specific performance, as the Circuit Judge intimated.
But it is said that the Circuit Judge erred in not allowing plaintiffs to amend, so as to conform the pleadings to the proof. The code gives power to the court to allow such amendments, but at its discretion. Code, § 194. We do not think that discretion was abused here. Moreover, there was room here for a wide difference of opinion as to the facts in reference to the land
There was no error in the exclusion of the $100, by which the judge held that the amount reported by the master should be reduced. As his honor said, McHugh himself admitted that there was nothing said about the assignment of the judgment when Richey borrowed that sum.
Nor was there error in the order of Judge Hudson overruling the master in his sustaining the demurrer to the complaints. The allegations of the complaints of payment admitted by the demurrer, certainly gave them a cause of action, and entitled plaintiffs to relief, if true.
Judgment modified.
Reference
- Full Case Name
- MILLER v. KLUGH RICHEY v. SAME RICHEY & MILLER v. SAME
- Status
- Published
- Syllabus
- 1. Plaintiff filed his complaint to enjoin the enforcement of a judgment held by defendant as assignee, alleging that it had been paid; defendant answered, claiming that he had lent the money to plaintiff to pay the judgment and that it had been assigned to defendant as security for the money so lent. At the trial the dispute was whether the money paid by defendant to plaintiff had been lent and the judgment assigned to secure the loan, or whether it was paid on a contract of purchase of land and the judgment assigned to secure the execution of a title-deed, w'hich had been afterwards tendered. Held, that the Circuit Judge erred in supposing that the question of specific performance was raised by the testimony, for only the allegation of payment was involved and that question of fact should have been decided by him. Mr. Chief Justice Simpson, dissenting. 2. A complaint to enjoin the enforcement of a judgment upon an allegation of payment, cannot be changed by amendment into an action for the specific performance of a contract for the purchase of land. But as the complaint alleged such payment, it stated a cause of action. 3. A party holding an assignment of a judgment to secure certain moneys advanced cannot claim the judgment as security for other moneys advanced, hut not agreed to he so secured.