Carlisle Trust Co. v. Group

23 Pa. D. & C. 215, 1935 Pa. Dist. & Cnty. Dec. LEXIS 101
CourtPennsylvania Court of Common Pleas, Cumberland County
DecidedMarch 11, 1935
Docketno. 71
StatusPublished

This text of 23 Pa. D. & C. 215 (Carlisle Trust Co. v. Group) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Cumberland County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carlisle Trust Co. v. Group, 23 Pa. D. & C. 215, 1935 Pa. Dist. & Cnty. Dec. LEXIS 101 (Pa. Super. Ct. 1935).

Opinion

Reese, P. J.,

On February 14,1931, John E. Group and W. S. Egulf executed and delivered their promissory note for $100, payable in monthly instalments of $10 each, to the Valley Loan Company, which subsequently indorsed the note to the Carlisle Trust Company, the present holder. The note contained a warrant of attorney to confess judgment.

In December, 1934, the Carlisle Trust Company requested the prothonotary to enter judgment on the note in the sum of $64.50, with interest from June 15, 1932. When presented to the prothonotary, the note was marked paid by the perforation of the letters “P-A-I-D” over the signatures of the makers and by the following indorsement “Paid in full Jan. 28, 1932. Valley Loan Co., Paul D. Smith, Sec. & Treas.” This indorsement had been crossed out by pencil marks. The face of the note bore the following notation: “This note cancelled in error. The Valley Loan Co., by Paul D. Smith, Sec. & Treas.; Carlisle Trust Company, by L. B. Lefever.”

The prothonotary refused to enter judgment on the note, whereupon upon petition of the holder, Carlisle Trust Company, the court granted a rule upon the makers and the prothonotary to show cause why judgment should not be entered on the note. The petition averred the foregoing facts and also that the note had been inadvertently marked paid. The prothonotary filed an answer averring that when the note was offered for entry it was not accompanied by a praecipe or any direction to him or any affidavit by the holder, and further that it did not appear from the note that any amount was due thereon.

W. S. Egulf, one of the makers, after service of the rule upon him, obtained a rule under the Act of March 5, 1925, P. L. 23, to determine preliminarily the question of jurisdiction over him, alleging, in substance, that the rule issued against him had been improperly issued as an original process. To this the Carlisle Trust Com[217]*217pany filed an answer and the matter is now before the court.

We believe that it is true that when a prothonotary perversely refuses in a proper case to enter judgment on a note, bond, etc., under section 28 of the Act of February 24, 1806, 4 Sm. L. 270, it would be proper practice to grant a rule upon the prothonotary to show cause why he should not enter the judgment: Peerless Soda Fountain Co. v. Schneyer, 13 D. & C. 56. But it by no means follows that the obligors in the note or bond could properly be made parties to such a proceeding, and there is considerable merit in the contention of W. S. Egulf that jurisdiction cannot be acquired over him by a rule to show cause in a proceeding to acquire a summary judgment. A rule to show cause is generally auxiliary and for the facilitating of jurisdiction already acquired, and is not properly used as original process unless authorized by statute to be so used: Short v. Board of the School District of Upper Moreland Twp., 108 Pa. Superior Ct. 503, 505.

However, inasmuch as we have concluded that the rule granted upon the prothonotary and the makers of the note must be discharged, it becomes unnecessary to pass finally upon the preliminary question of jurisdiction over the makers. It is true that the rule first granted has not been placed on the argument list, but the entire record of the matter is sufficiently before the court and further delay seems unnecessary.

The Act of 1806, supra, provides “it shall be the duty of the prothonotary of any court of record, within this commonwealth, on the application of any person being the original holder (or assignee of such holder) of a note, bond, or other instrument of writing, in which judgment is confessed, or containing a warrant for an attorney at law, or other person to confess judgment, to enter judgment against the person or persons, who exe[218]*218cuted the same for the amount, which, from the face of the instrument, may appear to be due”.

It is well settled that under this statute judgment may only be entered “for the amount, which, from the face of the instrument, may appear to be due”, and when the amount for which judgment is to be entered cannot be ascertained without resort to evidence outside the writing, the prothonotary has no statutory authority to enter the judgment. The prothonotary has no authority to accept such evidence outside the writing, and in the capacity of an arbitrator or referee, ascertain facts not appearing in the instrument upon which it is sought to enter judgment: Lansdowne Bank & Trust Co. et al. v. Robinson et al., 303 Pa. 58; Orner v. Hurwitch et al., 97 Pa. Superior Ct. 263; Meyers & Joly v. Freiling, 81 Pa. Superior Ct. 116. The Act of 1806, supra, being in derogation of the common law right to be legally summoned or to voluntarily appear in some form, must be strictly construed: Schwartz v. Sher, 299 Pa. 423, 429; Oberlin, to use, v. Parry, 287 Pa. 224; Automobile Banking Corp. v. Duffy-Mullen Motor Co., 85 Pa. Superior Ct. 296, 299. The instrument on which the prothonotary acts, in entering a judgment under the Act of 1806, must contain sufficient definite information to bring it within the provision of the statute, and if such information does not exist, expressly or by clearest implication, no judgment can be entered. By “clearest implication” is meant an implication so clear that only one meaning can be taken from it: Schwartz v. Sher, supra; Oberlin, to use, v. Parry, supra.

Applying these principles to the note in the instant case, we find that when it was presented to the prothonotary it was marked paid by perforation and also by indorsement. The latter was ruled out in pencil and the note also bore the notation that it had been canceled in error. Was the prothonotary to determine which was true? He could not do so by looking at the instrument, [219]*219and, as pointed out, he has no authority to resort to evidence outside the note. Certainly the prothonotary could not enter judgment on a note marked paid. Nor do we think that the holder’s unsworn, self-serving indorsement that the note had been canceled in error changes the situation. As pointed out in Schwartz v. Sher, supra, at page 429, it is possible to make at least two inferences from the information furnished by the indorsements and therefore information authorizing the entry of judgment does not appear on the note itself by clearest implication. The prothonotary could not ascertain from the note itself the amount which appeared to be due, for the inference could be drawn from the note that nothing was due. Hence the prothonotary was justified in refusing to enter the judgment.

It is true that the possession of a note affords proof, prima facie, of a right in the holder to recover on it according to its terms. The holder is not required to prove that it has not been paid. His case is made out by the production of the instrument in the first instance, and the burden of showing payment is on him who alleges it. The instrument makes for the holder, if default and the amount due appear thereon and it contains a confession of judgment, a prima facie right to have judgment entered under the Act of 1806: Oberlin, to use, v. Parry, supra; Drey Street Motor Co., for use, v. Nevling, 106 Pa. Superior Ct. 42; Dalton v. Willingmyre, 60 Pa. Superior Ct. 225. But it is equally true that where an instrument appears to have been canceled, the burden of proof lies on the party who alleges that the cancellation was made unintentionally or under a mistake: section 123 of the Negotiable Instruments Law of May 16, 1901, P. L. 194.

In International Harvester Co. v. Tuscarora Township (No. 1), 43 Pa. Superior Ct.

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Related

Schwartz v. Sher
149 A. 731 (Supreme Court of Pennsylvania, 1930)
Oberlin v. Parry
134 A. 460 (Supreme Court of Pennsylvania, 1926)
Lansdowne Bank & Trust Co. v. Robinson
154 A. 17 (Supreme Court of Pennsylvania, 1931)
Morel v. Morel
81 Pa. Super. 84 (Superior Court of Pennsylvania, 1923)
Orner v. Hurwitch
97 Pa. Super. 263 (Superior Court of Pennsylvania, 1929)
Short v. Board of School District
165 A. 669 (Superior Court of Pennsylvania, 1932)
Meyers & Joly v. Freiling
81 Pa. Super. 116 (Superior Court of Pennsylvania, 1922)
Drey St. M. Co. for Use v. Nevling
161 A. 880 (Superior Court of Pennsylvania, 1932)
Automobile Banking Corp. v. Duffy-Mullen Motor Co.
85 Pa. Super. 296 (Superior Court of Pennsylvania, 1925)
International Harvester Co. v. Tuscarora Township
43 Pa. Super. 410 (Superior Court of Pennsylvania, 1910)
Dalton v. Willingmyre
60 Pa. Super. 225 (Superior Court of Pennsylvania, 1915)

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Bluebook (online)
23 Pa. D. & C. 215, 1935 Pa. Dist. & Cnty. Dec. LEXIS 101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carlisle-trust-co-v-group-pactcomplcumber-1935.