Bluehill Academy v. Ellis

32 Me. 260
CourtSupreme Judicial Court of Maine
DecidedJuly 1, 1850
StatusPublished
Cited by1 cases

This text of 32 Me. 260 (Bluehill Academy v. Ellis) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bluehill Academy v. Ellis, 32 Me. 260 (Me. 1850).

Opinion

Tenney, J.

It was not known to the trustees, before the death of the defendant’s intestate, that the note signed by him, was not secured by a mortgage of real estate, according to the provision in the by-laws; notwithstanding an auditor was appointed on April 15, 1835, to examine the accounts, who reported on Feb. 28, 1839, that the accounts of the treasurer were in the best order, well vouched, and that on examination, the securities for money loaned, appeared to be safely secured by mortgage and otherwise, and the report was accepted by the trustees. The mortgage deed made out, corresponding with the note, but not executed, was placed upon the file with other mortgages; and having such a label upon it, as it was proper that it should have, if executed and made in all respects perfect, it was supposed by the auditor to be effectual, and he did not examine it, as it was his duty to have done. The note not having been secured according to the requirement of the by-laws, could not be considered as received by the trustees without any action upon their part, and without knowledge of its true condition. The books of the treasurer show that the intestate did not treat the note as having passed from him to the trustees ; he charges himself with the same sum as that named in the note under the same date, being money loaned by the direction of the trustees, and afterwards from time to time charges himself with the annual interest on the principal to Sept. 1, 1843. This sum, thus charged as principal, he received, as it is admitted, and ap[264]*264propriated to his own use. There is no reference to the note either on the credit or debit side of his book. It was undoubtedly the design of the intestate to have the mortgage executed and so placed that it would be regarded as delivered, for security of the note, which was perfect excepting that it had not been accepted by the payees. But it was neglected from time to time and was never done. He was responsible for this money as the treasurer, after he had received it; and it is manifest that he did not consider, that his official responsibility had ceased, and, that his liability as a borrower had commenced, although he had so far availed himself of the authority of the trustees to lend the money, as to make use of it as a loan to him. As the note was not understood by the intestate, who knew all the facts, to have become the property of the trustees, and as it cannot be treated as having been taken by them constructively in violation of the by-laws, it was not an extinguishment of his liability for the money received, which was intended as its consideration.

Upon the hypothesis, that the note never became the property of the institution, it is insisted, that this action is not maintainable, iuasmuch as the claim presented to the commissioners of insolvency, was the note, and not a sum appearing due upon the treasurer’s books. Great liberality has been allowed in adjusting the mutual claims, existing between creditors of a deceased insolvent and his estate, with a view, that one should be a set-off to the other, as far as it would extend, in order that perfect justice should be done. And with this view the technical rules, which have been inflexible in ordinary suits, have been made in some measure to yield. McDonald v. Webster, 2 Mass. 498; Jarvis v. Rogers, 15 Mass. 389; Fox v. Cutts, 6 Greenl. 241. Judge Mellen, in the opinion of the Court, in Lyman, Adm'r, v. Estes, 1 Greenl. 182, says, “ our statutes relative to the settlement of insolvent estates, contemplate a fair adjustment of all demand's subsisting between the deceased and his creditors at the time of his death, so that the balance justly due to the estate may be collected.” “The strict principles of the common law, and technical [265]*265rules of pleading must not be applied to cases, where the parties have not mutual remedies at law, which they can enforce as in cases of insolvency. Knapp, Adm’r, v. Lee, 3 Pick. 452. As promotive of the same purpose, the R. S. chap. 109, sect. 20, have provided, that when an appeal is taken from the decision of the commissioners, and the creditor shall prosecute his claim in an action for money had and received, the creditor may annex to his writ a schedule of all his claims, or the nature thereof; or he may file in the office of the clerk of the court to which the action is brought such schedule, fourteen days at least before the return day of the writ; and the administrator, at such time as the court may direct, may file an abstract of all the demands which the deceased may have left against the supposed creditor; and judgment shall be rendered for either party, as the case may be, upon the balance to be ascertained at the trial.

The R. S. chap. 115, sect. 9, provide, “ that no summons, writ, declaration, plea, process, judgment or other proceedings in courts of justice shall be abated, arrested or reversed for any kind of circumstantial errors, or mistakes, when the person and case may be rightly understood by the court, nor for want of form only, and which by law might have been amended.” Under this provision of the statute, when the court have jurisdiction of the persons, and the subject-matter, an amendment of a declaration in a writ can be made, by inserting a new count, if it shall appear that it is for the same cause of action. Judge Parkkk says, in Ball v. Claflin, 5 Pick. 304, The new count offered must be consistent with the former count or counts, that is, it must be of the like kind of action, subject to the same plea, and such as might have been originally joined with others. It must be for the same cause of action : that is, the subject-matter of the new count must be the same as that of the old; it must not be for an additional claim or demand, but only a variation of the form of demanding the same thing.” Eaton v. Whitaker, 6 Pick. 465; Clark v. Lamb, Ibid. 512.

In Vancleef v. Therasson & al. 3 Pick. 12, which was an [266]*266action on account annexed for goods sold and delivered, and for which a negotiable note had been given, it was held that the plaintiff could not amend the writ by inserting a count upon the note, being for a different cause of action, but was entitled to recover, as the writ stood, the transaction being in New York, where the note is not payment of the account. By the law of Massachusetts and of this State, the taking of a negotiable note for an existing account, is a discharge of the latter, unless otherwise agreed by the' parties. It follows, if the note taken had no validity, the supposed consideration of it stands unaffected.

The case of Barker & al. v. Burgess & als. 3 Metc. 273, was where an action was commenced against a firm on a note, which one member had given in the name of the company, embracing matters against him individually. The defendants having given evidence, that the note was not valid and binding upon the partnership, the plaintiffs asked leave to amend their declaration, by inserting the common counts, for goods sold and delivered, for labor and services, &c., with a view of filing a bill of particulars, embracing so much of the original consideration of the note, as arose from the liability of the partnership on their own account. This amendment was granted and approved by the whole court, under the provisions of the statute, which in this respect were substantially similar to that of this State.

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Related

Champlin v. Ryer
120 A.2d 228 (Supreme Judicial Court of Maine, 1956)

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Bluebook (online)
32 Me. 260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bluehill-academy-v-ellis-me-1850.