Chapin & Gore, Inc. v. Estate of Powers

270 Ill. App. 382, 1933 Ill. App. LEXIS 532
CourtAppellate Court of Illinois
DecidedApril 11, 1933
DocketGen. No. 36,205
StatusPublished
Cited by2 cases

This text of 270 Ill. App. 382 (Chapin & Gore, Inc. v. Estate of Powers) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chapin & Gore, Inc. v. Estate of Powers, 270 Ill. App. 382, 1933 Ill. App. LEXIS 532 (Ill. Ct. App. 1933).

Opinion

Mr. Justice Sullivan

delivered the opinion» of the court.

Chapin & Gore, Inc., filed its claim October 9, 1930, in the probate court of Cook county against the estate of John Powers, deceased (John Powers died May 19, 1930), based upon the following instruments:

“$1721.30 Chicago, June 12, 1914

On demand after date we promise to pay to the order of Chapin & Gore Seventeen hundred twenty-one and. 30/100 Dollars at our office, #67 East Adams Street. Value received with interest at six per cent per annum.

No..........due..........Sgd. Walter J. Powers

John Powers.”

Indorsed on hack, “Paid Nov. 14th, 1920 $103.27.” “$5407.50 Chicago, June 12,1914

On demand after date we promise to pay to the order of Chapin & Gore fifty-four hundred seven and 50/100 Dollars at our office #67 E. Adams Street. Value received with interest at six per cent per annum.

Indorsed on back, “Paid Nov. 14th, 1920, $324.45.”

The total of this claim at the time of filing, including principal and interest, was $13,544.65. The indorsements on the back of these notes were shown by the evidence to have been made in the handwriting of Mr. Pearson, cashier of the claimant. These amounts are the equivalent of interest for one year on the principal of the respective notes at six per cent.

It will be observed that both notes are dated June 12, 1914, and are payable on demand and that the claim was not filed until October 9, 1930, that is, more than 16 years after the cause of action accrued, about five months after the death of John Powers, and within about 35 days of the time when it would have been barred even were the statute of limitations tolled by the alleged payment.

After a hearing in the probate court the claim was disallowed, and the claimant appealed to the circuit court of Cook county where a trial de novo was had without a jury and the claim was allowed and judgment entered against the estate of John Powers, deceased, for $14,442.58. This appeal followed.

The claimant contends that November 14,1920, John Powers paid $103.27 on one note, and $324.45 on the other note, and that on that date such payment was indorsed on the back of the respective notes, and that such payment tolled the running of the statute of limitations. 0

The defendant contends that the notes being payable on demand a cause of action arose at the time they were dated, and that on their face they are barred by the statute of limitations; that to remove the bar the burden was upon claimant to prove by proper evidence that such a payment was made.

No issue is raised on the pleadings or in respect to the consideration or terms of the notes.

The claimant relies on the testimony of the witness Pearson, the entries in the so-called “Bills Receivable Book,” and the indorsement of payment on the notes by the witness Pearson to prove that John Powers made such payment November 14, 1920, as would toll the statute.

Objection was made on the trial to the admissibility of the indorsement of payment on the notes by the cashier or agent of the payee on the ground that such indorsements were self serving, and were not binding on John Powers in his lifetime, and were even less binding on his estaté after his death.

Objection was urged to the admission in evidence of the entries in the bills receivable book on the ground that the entries in that book were not original entries in a book kept in the regular course of business of the claimant, and that the entries offered were admittedly copies of other entries that had been previously made and for some reason or other destroyed.

Objection was made to the entire testimony of the witness Pearson, on the ground first, that he was disqualified as a witness under section 2 of the Evidence Act, Cahill’s St. ch. 51, 2, which is as follows:

“No party to any civil action, suit or proceeding, or person directly interested in the event thereof, shall be allowed to testify therein of his own motion, or in his own behalf, by virtue of the foregoing section, when any adverse party sues or defends as the trustee or conservator of any idiot, habitual drunkard, lunatic or distracted person, or as the executor, administrator, heir, legatee or devisee of any deceased person . . . unless when called as a witness by such adverse party so suing or defending . . .. ,” inasmuch as he was a stockholder, director and officer of the claimant corporation ; and, second, that once his status as an interested person under the statute had been established, he could not divest himself of his ownership of his stock and relinquish his offices in the corporation in any manner that would render him a competent witness.

The claimant offered evidence to show that Pearson was only a nominal stockholder and that he had no pecuniary interest in the claimant corporation at the time of the trials in the probate or circuit courts, nor at any other time since the one share of stock was issued in his name in 1918, and immediately indorsed by him in blank and turned over to Charles J. Hermann, who was the controlling owner of the stock of Chapin & Gore (hereafter referred to as the claimant).

We will assume for the purpose of considering all of the evidence presented that the trial court ruled properly on these objections and that whatever force there was to the objection went to the credibility rather than to the competency of the witness Pearson, the indorsements on* the notes and the entries in the bills receivable book.

For a proper understanding and determination of the issues presented in this case it is necessary that we examine the evidence bearing upon the question of the alleged payment carefully and fully.

Louis W. Pearson testified that he was the cashier of the claimant prior to 1914, and continuously from 1914 to the time of the trial in the circuit court; that the claimant kept a book that was called the bills receivable record and that that book contained an account of all notes in the possession of the claimant and the terms of payment of same, and that whenever a payment was made on any of the notes an entry of the payment was made in the bills receivable book; that all of the entries in this book that had to do with the Powers’ notes were made in the witness’ handwriting; that he made the entries in this book June 12, 1914, evidencing these notes and their terms; that on or about November 14, 1920, he made on the backs of the respective notes- the indorsements appearing thereon; that at the time of the indorsement of November 14, 1920, on the notes and of the entries of the same date in the bills receivable book, the claimant also kept1 a cash book and ledger; that all the books and records in which this payment was entered except the bills receivable book were destroyed by the witness five or six years before the trial; that in the regular course of business of the claimant the entries appearing in the bills receivable book were entered in the cash book and the ledger interest account; that Charles J.

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Bluebook (online)
270 Ill. App. 382, 1933 Ill. App. LEXIS 532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapin-gore-inc-v-estate-of-powers-illappct-1933.