Read v. Wheeler
Read v. Wheeler
Opinion of the Court
delivered the opinion of the court.
The first point to be decided is, can the plaintiff declare upon such a note as that stated in the record, or should he only have used it as evidence upon a count fitted for its reception? Or in other words, is it a promissory note? At the common law, an action of debt founded upon a record or specialty, did not require a consideration to be stated for its support; because the solemnity of the execution in the one case, and the adjudication in the other, afforded sufficient security against surprise or the suspicion of it. But debt founded upon simple contract, required a consideration. The promise may have passed lightly from him without any just cause, and without sufficiently weighing the circumstances; perhaps without seriously intending to bring himself under a legal obligation to the promissee, and possibly under a mistake of duty or of moral obligation. In order that the court may see that he has not been circumvented or surprised into a hasty and inconsiderate engagement,it requires a cause to be shown why the promise was made, equally incompatible with the idea of surprise as the solemn execution of a deed. A consideration good in law, must be alleged and proved, not only to show deliberation in the execution , but also as part of the description of the contract sued on, that it may serve by a comparison in a future suit on a contract as exactly described as it has been, to see whether it be the same contract or not, and by that means
If the courts were bound by the words, “value received,” they could not have seen what consideration was called “value received,” whether for' a cause sanctioned by law, or whether founded upon an immoral consideration, or one prohibited by the law, and on which no promise could be based,
By resting on the words, “yalue received,” whatever the parties called value, legal or illegal, moral or immoral, it was the same thing to the party to be charged as if it were the ipost meritorious cause that could be imagined. But if the plaintiff were forced to allege the true consideration, and prove it, though the defendant was wholly unable to prove any thing, yet the truth would come before the court on the side of the plaintiff. He could not recover without proving it, and he would not of course attempt a recovery but upon a legal consideration. Rest upon the words “value received,” and deem it sufficient prima facie, then, in every case where the defendant could not prove turpitude, the plaintiff, for want of evidence on the side of the defendant, would recover. He would take care to have no witnesses of the transaction, and would be perfectly safe, which he would not be if obliged to prove a fair and legal consideration, \ Justly did the court decide in the time of Lord Holt, that such a contract reduced to writing, and purporting to be ¡ for value received, could not be declared on as a special
It is urged, that according to the practice of modern times, the instrument described in the declaration, if not within the statute of Anne, or our act of 1762, ch may still be declared on at common law, by reason of the words, “value received,” and 7th Johnson’s Rep. 321, Jerome vs. Whitney, is cited. There it is said that a note for value, though not within the statute, may be declared on without stating a special consideration, and that the words “value received,” will be looked upon as sufficient proof of consideration, prima facie. This opinion is not founded on any case where the point is decided, but upon the principle of other cases which are supposed to warrant the decision. One of them, 3 Caine’s Rep. 286, where a contract to be paid by note is stated to be founded on two considerations, and one only is proved, which proof the court held to be insufficient to maintain
If it be within the act of 1786, ch. 4, as being a note expressed to be for “value received,” though not a promissory note within the act of 1762, then as to the remedy upon it between the payee and maker, it remains as before at the common law; there being in the act of 1786, no clause as there is in 1762, enabling the payee to declare upon it. In the act of 1789, ch. 57, sec. 3, an action of debt is not given upon it to indorsees, though it is given to assignees of bonds, bills or notes under seal. An action of debt, if this reasoning be correct, cannot be maintained upon the instrument.
But it is urged, that this note being good evidence upon a count for money lent, &c. the real consideration might be equally concealed by this means, as it would by declaring on the note itself. Answer: if there were really a special consideration, and that not set out and proved, the action would be defeated, should it be proved on the part of the defendant, and therefore it would be most perilous to the plaintiff not to set it out. If there were no special consideration, then the law does not require that to be seen by the court. But if “value received” would do in all cases, then in many instances where the court ought to see the special consideration, it would by this means be concealed. Therefore, notwitstanding this
R now remains to consider whether the act of 1809, 7 c^‘ sec* forbids a reversal of the judgment for this defect. It directs that no judgment shall he reversed, but for some cause affecting the merits of the judgment. A judgment is meritorious as it gives justice to the plaintiff, and as it gives to the defendant the advantages which the law allows him. If he be not called on: if he be not allowed to produce his defence; if he be not secured against a second action for the same cause; if the cause declared on be not stated and proved, so as to distinguish and identify the action recovered upon, by its peculiar marks, so as to enable him at a future day, to say if the same cause described in another action with all its characteristic traits, that this is the same cause of action described in a former record; then there would be cause for reversal affecting the merits. The absence from the plaintiff’s statement of any fact, without which the action cannot be regularly supported, and which, therefore, cannot be proved on the trial, is a cause for reversal upon the merits. Here the consideration is not stated: nor is the time of payment averred; 6 Cranch’s Rep. 221; Connecticut Rep. 464.
One consequence of supporting this declaration would be, that every written contract not under seal, owning the existence of a debt expressed or implied from the words, “value received,” would be declared on in debt, and all considerations, as required by the common law to appear, wouldimmediately be banished from the system of our jurisprudence; and all substantial difference also, between sealed and unsealed instruments. For in vain would it be to say, the defendant may prove the consideration, when all considerations too contaminated for inspection would be transacted in secret, and withdrawn from the knowledge of all persons but the parties to the instrument. If the legislature may think, that the inconvenience of requiring the consideration to be stated and proved, exceeds the advantages proposed to be attained,
Reference
- Full Case Name
- Thomas J. Read and others v. John J. Wheeler
- Status
- Published