Bagley v. Eaton

1 Cal. Dist. Ct. 218
California District Court·Decided September 15, 1857·Published

Opinion

Hager, J.

The action is against the administrators of the estate of G. C. McMickte, deceased, to recover the amount of three promissory notes, alleged to have been made by deceased, March 22d, 1851, [219]*219to the firm of Bagley k Sinton. This faction is principally based m the ground that the court erred in charging the jury.

On the trial, in order to account for the non production of the notes, and to lay the foundation for introducing secondary evidence of their contents, the plaintiff read to the court his own and his co-payee, Sin-ton’s, affidavit, in which they substantially depose to the making of tM notes, and that-they remained in the possession of Bagley k Sinton until after maturity, when, upon the solicitation of McMickle, the affiants consented that they might be destroyed, in order to satisfy Mia that they would not be negotiated or passed into the market, or 'the hands of some ier party, and that they were then, about the fifteenth of August, 1852, tom up and destroyed, with the consent, and in th® presence of, Bagley k Sinton.

The plaintiff then gave in evidence a'bond, of March 2M, 1851, from Bagley & Sinton to McMickle, in which it is recited to the effect that on or about the first of May, 1850, Bagley k Sinton gold to MoMickle, for the sum of $14,000, a lot Of ground, which is described, and that McMickle paid of the amount the sum of #8,420, leaving a balance due, which, with the interest, amounted, to $6,580, for which McM. executed three notes of the same date *&s the bond, “ one being for the sum of $2,000, payable thirty days after dato j another for a like sum of $2,000, payable sixty, days after date,-and the third amd last for the sum of $2,580, payable ninety days after date, each and @11 bearing interest at'the rate of five per cent, per month from date" and followed by a condition to the effect, that if McM. well and truly pays the notes at maturity, then B. k S. are to execute a deed to McM. for the lot of ground; and if McM. makes default in the payment of any one or all of the said notes, then he is to forfeit all right or interest in the lot, and B. & S. are authorised to dispose of it, discharged of all claim or pretense of claim, or interest of McM., as they may see fit.

It is alleged in the complaint, and not denied, that McMiold® died in ———, 1854, and it was proven that Bagley & Sinton, on the fifth day of January, 1855, presented to one of the administrators óf M©= Mickle an account, claiming payment of the amount dm® upon th® eós? tract and notes, which was rejected by the administrator.

On the fifth day of April, Sinton, by writing, assigned Ms" latesssfe [220]*220in the bond, notes, and claim agaist the estate, to the plaintiff, Bagley. In the account presented to the administrator it is in substance stated, that the lot was purchased for $14,000, on which was paid $8,420, leaving a balance, with the interest, of $6,580, for which notes were given, drawing interest, as is recited in the bond; then of the date of June 4th, 1851, McMickle is credited by the proceeds of the sale of the property," under power of sale from said McMickle, $3,000,’-’ and the balance af principal and interest is claimed to he due, which, in tire aggregate, now amounts to something over $20,000.

Upon these proofs the plaintiff rested, and the defendant went to the jury upon the same evidence, and asked the court to instruct them that the testimony was insufficient to support a verdict, for any sum, in favor of the plaintiff; when the court in substance charged the jury as is set forth in the statement on this motion.

In consideratim of the fact that this case has already been twice before the Supreme Court, although upon a different statement of facts from that in which it is now presented, I have taken some pains to carefully consider and examine the law applicable to actions upon lost notes.

In England the doctrine appears to be established that there is, and should be, no remedy at law for the holder of a negotiable note which has been lost, to recover the contents from any antecedent party on the note, whether he is the maker or endorser; but that the sole remedy is, and should be, in equity, where the relief will be granted upon the holders proving the loss, and giving a suitable bond of indemnity.

Ib the United States, unless there are statutory regulations on the subject, there has been much diversity of judicial opinion. In some of the States, the English doctrine has been maintained in the affirmar tive, in others it has been held in the negative, and again in others the holder has been allowed to sue at law, if be executes a suitable instrument of indemnity. Kent and Story seem to think that the weight of authority is in favor of tire exclusive remedy in equity. The same doctrine is extended to cases of demands for payment, and upon actual payment being made, the note should be surrendered, or if lost indemnity against a second payment must be given or tendered. Hansard vs. Robinson, 7 Barn. & Cress., 90; Story on Promissory Notes, §§106-112, 244, 445, 446 ; 3 Kent’s Com., 114,115, and note (d) ; 2 Gr. [221]*221Ev., §156, and note (8) ; 1 Gr. Ev., §558, and notes, and the numerous authorities cited by these commentators.

And it is said to make no difference as to the rule of law if the note is so old that the statute of limitations has attached upon it. 3 Phil. Ev., 7; Bailey on Bills, 299; Story on Prom. Notes, §449, and note (1).

There is a recognised distinction in some of the authorities between cases where the document is, and those in which it is not, the foundation of the action in regard to the admission of secondary evidence of its contents. In some instances, where it is merely auxiliary to the action, strict proof of loss has not been required, and even where it is the foundation of the action the rules of evidence, in proving the loss or destruction, are not universally settled. Persons interested in the action, and the parties themselves, have sometimes been held competent witnesses, or their affidavits have been admitted in regard to facts ■ and circumstances necessary to lay the foundation of secondary evidence ; but perhaps an equal number of cases may be found maintaining the opposite doctrine. The numerous authorities ml! be found collated in 2 Part of Cowen & H., notes to Phil. Ev., 408.

The affidavit of the party, as evidence of loss or destruction of the instrument, has been received upon the ground that st is preliminary and incidental, addressed solely to the court, and not affecting the issue to be tried by the jury; but they are restricted to the question of loss, and are not allowed for the purpose of disclosing the contents of ft© lost instrument, and should not he received at aE if other testimony Is attainable. If the party making the affidavit is competent to testify generally in the cause, he must he sworn and examined as an ordinary witness, that the advantage of a cross-examination may be preserved. When the foundation for secondary evidence is laid, the case must be proven before the jury by primary or secondary testimony, as folly as if the affidavits had not been introduced. Mason vs. Tallman, 34 Me. R., 472; Davis vs. Black, 5 Smedes & Marshall, 226; Adams vs. Leland, 7 Pick. R., 62; Donalson vs. Taylor, 8 Pick. R,, 390; Pomard vs. Smith, 8 Pick. R., 272, 278; Marshall, C. J., in Taylor vs. Riggs, 1 Pet. R., 591, 596-7 ; 16 John. R, 193, 195-6; Bun vs. Knen, 7 Black. R., 152.

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Bagley v. Eaton, 1 Cal. Dist. Ct. 218 (Cal. Super. Ct. 1857).

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