Cornelius v. Thomas
Cornelius v. Thomas
Opinion of the Court
The bill is filed against one Thomas, and John Morrow and Phebe his wife, to enjoin the collection of a judgment recovered at law by Thomas against the complainant. The defendant Thomas has demurred.
The bill alleges that the defendant Phebe Morrow was, with her infant children, entitled to a fund of $236.60 in the county court of Davidson county, the said Phebe being entitled to the interest arising from the fund. That John Morrow in person, and his wife by counsel, agreed with complainant that if he would borrow the money, and pay her interest at the rate of ten per cent, per annum, they would esteem it a great favor. That, for this purpose, it was necessary for complainant to become surety on the bond of John Morrow and wife, that the money would be returned to the clerk of the county court when required. That said John
The substance of the various causes of demurrer assigned is, that the defense was a legal defense over which the circuit court had complete jurisdiction, and that its decision was final; that the complainant was guilty of laches in not mailing his defense at law, and shows in his bill, no sufficient reason for now being allowed to make it; that if the circuit court, having jurisdiction of the matters of defense, erroneously declined to exercise that jurisdiction, the remedy for the complainant was in that court by exception and appeal, not in this court.
It will be noticed that all these positions are dependent upon the supposition that the complainant’s defense was purely legal, and, upon this supposition, the demurrer is undoubtedly well taken, unless the conduct of defendant’s counsel when the case was called in the circuit court, as detailed in the bill, should be held sufficient to affect the result. Let us see, however, whether the defendant’s assumption that the defense was purely legal, is correct.
' The defense as set out in the bill, dependent upon the same facts, is three-fold. In the first place, the complainant insists that, after he had paid $20 interest in advance and executed his new note for the principal and left it with the person agreed upon, he was not indebted on the old note at all, but only on the new note. In the second place, he says that the old note was assigned to Thomas by John Morrow alone, fraudulently to get possession of the funds of his wife and children, and without the wife joining or participating in the assignment. The third view of the defense, which is distinctly raised by the facts, is that the complainant became surety upon the bond of Morrow to the county court, upon the express agreement that the money was to be held by him, so as to be forthcoming whenever required, — Morrow and wife being insolvent — he paying interest annually to Mrs. Morrow, and that the note was given simply as evidence that
The first ground of 'defense as above stated is, in effect, that the old note was extinguished by novation, by the execution and delivery of the new note, or that the latter was received as an accord and satisfaction, or in payment of the old note. TMs would, I think, be a legal defense which ought to have been made at law, and which, after a failure to make at law, cannot be set up in this court without showing that the complainant was deprived of the opportunity of making it by unavoidable circumstances, or by the fault of the opposite party, or the officers of the court of law, unmixed with negligence or fault on Ms part.
The second ground of defense is nothing more, if it amounts to anything, than the plea of non-assignavit, and should have been made at law.
But as to the third ground of defense, I concur with the learned counsel at law of defendant Thomas, and with the Hon. the Circuit Judge in thinking it a purely equitable one, which could only be made in this court. The facts make out an equitable right in the complainant, under the agreement of the parties, based upon the valuable consideration of Ms becoming surety on the bond to the county court, to hold the money to answer the requirements of that bond, and for this purpose to impound the complainant’s note in the hands of Morrow and wife, or any person claiming under them who could only stand in their shoes, and to enjoin its collection until the bond to the county court was paid. It is clear that this defense could not be made at law at all, for it goes to limit the terms of the written note by parol testimony. The remedy is only in a court of equity.
This disposes of all the grounds of demurrer, and renders it unnecessary to consider whether the complainant is entitled to come into this court by reason of anytMng said by the defendant’s counsel when the judgment by default was taken,
Note. — This decision was, upon appeal to tlie supreme court, affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.