Blackshear Manufacturing Co. v. Harrell

12 S.E.2d 328, 191 Ga. 433, 1940 Ga. LEXIS 647
CourtSupreme Court of Georgia
DecidedDecember 3, 1940
Docket13343.
StatusPublished
Cited by11 cases

This text of 12 S.E.2d 328 (Blackshear Manufacturing Co. v. Harrell) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blackshear Manufacturing Co. v. Harrell, 12 S.E.2d 328, 191 Ga. 433, 1940 Ga. LEXIS 647 (Ga. 1940).

Opinion

Atkinson, Presiding Justice.

1. The assignments of error based on the general grounds of the motion for new trial are abandoned.

2. Under the Code, § 20-1004, “bank checks and promissory notes are not payment until themselves paid;” and a promissory note taken in renewal of a previous note, or for a balance due on such note or an account, will not, until that note is actually paid, operate as a payment, or operate as an accord and satisfaction or novation extinguishing the previous note or indebtedness, unless the parties so agree. Belmont Farm v. Dobbs Hardware Co., 124 Ga. 827 (53 S. E. 312); Standard Cooperage Co. v. O’Neill, 146 Ga. 235, 237 (91 S. E. 82). Under the defense of the maker that a last note, given in transactions between the debtor and creditor, had been fraudulently obtained, and in the absence of any evidence of agreement between the parties that such note should operate as a payment, accord and satisfaction, or settlement of a previous note and alleged indebtedness, the mere taking of the last note would not extinguish the previous obligation or any previous indebtedness.

3. Where, as in this case, after delivery of a last note by the debtor to the creditor, the creditor returned the previous note to the debtor with the mere statement, “a new note having been given us, we are returning your old note,” and the debtor attacked the last note as having been fraudulently obtained, the fact that the *434 old note had been surrendered and was in the hands of the debtor would not prevent the creditor from recovering on the old note or indebtedness, unless the new note, or the old note or indebtedness covered thereby, had been actually paid. Hodges v. Smith, 118 Ga. 789 (3) (45 S. E. 617); Standard Cooperage Co. v. O’Neill, supra; Schneider Marble Co. v. Knight, 37 Ga. App. 646 (4) (141 S. E. 420); Adams v. Skipper, 9 Ga. App. 123, 126 (70 S. E. 692).

4. One having the right to sue upon a promissory note, or upon the original indebtedness such as a book account or an account stated, may properly join these causes of action in one complaint; the two claims are not inconsistent, and no election is required if only one recovery is sought. 8 Am. Jur. 537, § 915, and cit.; 4 Am. Jur. 524, §§ 38, 39. But where a party sues only on a sealed instrument or special contract, without any of the so-called common counts, such as on a quantum meruit or for money paid or had and received, he must recover on the cause of action as laid in his pleading, and can not recover on such an unpleaded common count. Frierson v. Fincher, 134 Ga. 113 (67 S. E. 541); Seaboard Air-Line Ry. Co. v. Henderson Lumber Co., 28 Ga. App. 391 (111 S. E. 220), and cit.; 4 Am. Jur. 530, 531, §§ 45, 47; 7 C. J. S. 132 (§ 26, c). Nothing was held to the contrary in Strickland v. Parlin & Orendorf Co., 118 Ga. 213 (1, 4) (44 S. E. 997), where suit was brought on a contract of .purchase of certain goods and on promissory notes given, in accordance with the contract, as evidence of the indebtedness thereon; and it was held that fraud in procuring the notes was no defense when the notes amounted to no more than a compliance with the previous valid contract, and the debt itself had never been paid. Nor in the previous decision of this ease (Harrell v. Blackshear Mfg. Co., 187 Ga. 531, 1 S. E. 2d, 440) was anything held contrary to the preceding rulings. The original cross-action of the defendant creditor merely declared upon a last note, which the debtor attacked as fraudulent, without in any wise setting forth or seeking to recover on the previous note and alleged indebtedness included in the last note. The case was tried and submitted to the jury on the issues of fraud and payment as affecting the right to recover only on the last obligation. It was decided in this court on the pleadings as laid and the issues as tried and submitted. After the reversal of the judgment in favor of the creditor, for the first time it sought by express amend *435 ment of its cross-action to recover on the previous note and indebtedness; and for the first time the questions raised by this amendment and the evidence and charges as related thereto are now before this court. Accordingly, as to such questions, the previous decision is not the law of the case.

5. The plaintiff debtor filed an equitable petition against a creditor to enjoin a sale under a security deed and to cancel the deed, which purported to secure a note dated November 10, 1930, for $175.80 and other existing and future indebtedness, on the ground that this note and all indebtedness had been fully paid, and the note had been returned to the plaintiff. In its answer the creditor set up that it was enforcing a different note, dated March 3, 1932, for $166.94, which was unpaid; and by cross-action it sought a recovery “on the note.” By amendment, the debtor alleged that the $166.94 note had been fully paid, and that this note had been fraudulently obtained. On the first trial the defendant creditor obtained a judgment on the $166.94 note. After the reversal by this court, the defendant amended its cross-action by setting up that there was a third note, executed March 17, 1931, for $212.80, and that when the $166.94 note was executed there was a balance of indebtedness due of that amount, which the last note covered; and it amended its prayers by seeking a recovery “on the aforesaid indebtedness.” The creditor conceded, as the debtor alleged, that the $175.80 note had been paid. Under the original cross-action the creditor’s claim for recovery involved only the $166.94 note; but under the amendment its claim involved the alleged balance due on the $212.80 note and the balance of indebtedness in the same amount as the $166.94 note, without any claim on the original $175.80 note, which admittedly was paid and surrendered. The court charged the jury as follows: “If you should further find from the evidence or from admissions made by the defendant [creditor] that plaintiff [debtor] had paid defendant all sums due on the $175.80 note, dated November 10, 1930, secured by plaintiff’s security deed bearing the same date, then you would be authorized to find in favor of the plaintiff, provided that you find the note for $166.94 and the extension agreement was procured through fraud by the agents of the defendant company. If they were not procured through fraud and they were taken justly and without fraud, then, gentlemen, of course you could find for *436 the defendant in the case the full amount sued for.” Exception is taken to this instruction as calculated to' mislead and confuse the jury, and as excluding from their consideration the' cause of action pleaded in the creditor’s amendment, whereby it sought recovery for the $166.94 balance on the $212.80 note and previous indebtedness, covered by the $166.94 note. Exception is also taken to the failure to charge, without request, as to the issue raised by such amendment.

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Bluebook (online)
12 S.E.2d 328, 191 Ga. 433, 1940 Ga. LEXIS 647, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blackshear-manufacturing-co-v-harrell-ga-1940.