Davis Broadway v. Barwick Son
Davis Broadway v. Barwick Son
Opinion of the Court
The opinion of the Court was delivered by
In this action for the possession of a lot of cotton, -corn and other produce, three horses and one mule, the defendants appeal from a judgment in favor of the plaintiffs.
*357
At the time the mortgage was given, March 19, 1909, there was an unpaid balance of $131.01 owing by the defendants to the plaintiffs for the year 1908. The total amount advanced for the year 1909 was $169.06. This with the balance of $131.01 from the year 1968 made an aggregate of $600.07. The defendant made a payment of $190, which *358 left the amount claimed by the defendant as due on the mortgage debt $110.07. The defendants’ contention was that the mortgage was by its terms limited to debts actually contracted during the year 1909, and therefore could not be extended to embrace the balance brought over from 1908. The construction of the mortgage on this point is not entirely free from difficulty. The Circuit Judge held that it covered the balance, if any, brought over from the year 1908, and so charged the jury. The words italicized express that it shall secure “any other and further sums of money * * * which may be due and owing * * * at any time during the current year.” The balance, if any, brought over from 1908, was a sum of money due and owing during the year 1909, and therefore fell under the express terms of the mortgage. The Court is not at liberty to limit the very comprehensive words, “further sums of money1 due and owing” during the current year, to the much more restricted meaning of sums of money advanced during the year 1909. The exceptions on, this point cannot be sustained.
The defendants set up the defense of payment of the debt brought over from 1908 by payment of a sum less than the debt which was accepted by the plaintiffs as full settlement.
*359
The Circuit Judge charged the jury that the alleged agreement of the bankrupt to settle for less than the amount actually owing was of no effect because it was without consideration. The payment of a sum smaller than a liquidated debt, in pursuance of an agreement, not under seal, to- accept such sum in satisfaction cannot be satisfaction of the whole. Such payment notwithstanding the agreement operates only as a payment pro tanto. Ex parte Zeigler, 83 S. C. 80, 64 S. E. 513. To escape the hardship of this rule, the Courts have held that very slight consideration will take a case out of it. But in this case we are unable to find any consideration. It is true that the debtor testified that he agreed to pay the same per cent, that other creditors should receive in the bankrupt proceedings in consideration of 'th-e plaintiffs agreeing not to proceed by law to -collect in the bankrupt court. But in all instances where a creditor accepts less than the full amount due in settlement, he frees- himself from the trouble of taking legal proceedings to collect. It may be that the Courts ought to have held in Pinnell’s case and the other *360 cases which followed it, that being relieved of the trouble of suit and of the doubt of ultimate collection was a sufficient consideration to support an agreement to settle for less than the amount due. But the rule has been settled otherwise.
It is the judgment of this Court that the judgment of the Circuit Court be affirmed.
Reference
- Full Case Name
- Davis & Broadway v. Barwick & Son
- Cited By
- 3 cases
- Status
- Published
- Syllabus
- 1. Pleadings — Copartnership.—After answer on merits and trial entered into, defendants cannot on motion of nonsuit object that there was no formal allegations in the complaint of defendants’ copartnership. 2. Evidence — Ibid.—In suit for possession of personal property under chattel mortgage, admission in evidence of the mortgage reciting the partnership is proof thereof. S. Mortgages.- — A chattel mortgage given to secure “any further sum of money which may be due and owing at any time during the current year” held to secure a balance of an account for the previous year. 4. Appeal. — Admission of parol evidence as to the intention of the parties to include the balance of a past due account, in the mortgage and submission of this issue to the jury, is too favorable to appellant and not ground for appeal. 5-. Payment. — An agreement to accept a less sum than amount due on an account as satisfaction for the whole not supported by any consideration is of no effect and is a payment pro tanto only.