Chumbley v. Peoples Bank & Trust Co.

60 S.W.2d 164, 166 Tenn. 35, 2 Beeler 35, 1932 Tenn. LEXIS 109
Tennessee Supreme Court·Decided May 20, 1933·Published·Cited by 10 cases

Opinion

Mr. Justice Cook

delivered the opinion of the Court.

October 9, 1926, complainants executed a deed of trust to secure their note of $3180, payable twelve months after date, to Peoples Bank & Trust Co., and on February 4, 1928, executed another deed of trust to secure another note, payable ninety days after date, to the bank. In November, 1931, the bank caused the trustee to advertise the property for sale under the deeds of trust.

The complainant filed the bill to enjoin enforcement of the deeds of trust alleging violation of an agreement to extend payment of the debts. It was charged that in consideration of the payment of $1351.78 on October 25, 1930, by their son, Frank Chumbley, the bank agreed to indefinitely extend the date of the maturity. of the mortgage debts. A statement in the record shows that $1021.78 of the sum paid October 25 was applied to taxes and past due interest and the balance of $330 credited on the $1876.80 note.

The bill and answer presented the question of whether the bank agreed to indefinitely postpone payment of the notes, and if so whether it violated the agreement by the steps taken to enforce payment commenced after the lapse of one year.

When called for hearing at the regular May term, 1932, complainants moved to continue the case to procure evidence of bankers and business men to rebut defendant’s proof that a reasonable time elapsed after the *38 alleged agreement before the attempt was made to collect the debts.

The chancellor refused to continue the case until the next term of court, but allowed complainants twenty days to take depositions of witnesses in rebuttal and ordered the cause set down for hearing at chambers, upon five days’ notice, given after expiration of the twenty days allowed to take the rebuttal evidence. The cause was heard at chambers in Winchester. The chancellor found that the bank did not extend maturity of the notes but merely agreed to indulge complainants, and said whether an indulgence or an indefinite extension of time, it appeared from the evidence that a reasonable time, more than a year, had elapsed, followed by notice to complainants August 16, 1931, of the purpose to enforce payment. He dissolved the injunction and dismissed the bill. Final decree upon the hearing at chambers was subsequently entered on the minutes of the chancery court at Manchester and from that decree complainants appealed.

They insist that the chancellor erroneously refused to continue to the next regular term, and illegally set the cause for hearing and disposed of it at chambers.

The record indicates no arbitrary action or abuse of discretion by the chancellor. The bill was filed December 7,1930. It was answered January 20,1931. Complainants’ depositions were filed May 9, before the regular May term May 16. The defendants filed their depositions May 11. The object of a continuance was to enable complainants to procure evidence in rebuttal as to what would be reasonable time, assuming the agreement to indefinitely extend payment of the debts. There is no showing that complainants could not have procured the evi *39 dence in rebuttal within the time allowed. The cause was not heard until June 25, and so far as the record shows complainants were afforded sufficient time to procure the desired evidence. On appeal the chancellor’s exercise of discretion cannot he reviewed in the absence of a showing that he abused it.

Before the Code of 1932, jurisdiction over trials at chambers rested on consent. Chapter 248', Acts of 1903. an Act to expedite litigation in chancery courts, as amended by chapter 427, Acts of 1905, empowered chancellors “to hear and determine in vacation and at chambers questions arising on demurrer, dilatory pleas, motions, and applications to amend pleadings . . . and hear and determine by final decree any cause when the parties,.or their solicitors, consent to such hearing.”

This Act was bodily carried into section 10500 of the Code, coupled with the additional words “or the co%irt provides for it by-,-order. If the parties do not consent, then the parties desiring such action shall give notice in the same ma/rmer as provided in matters of motion to dissolve injunction

It is urged by complainants (1) that the chancellor could not set the cause for hearing at chambers without first entering an order as provided by section 10498 of the Code, designating his chambers for the hearing of chambers cases in the chancery division. (2) That sections 10498, 10499 and 10500 are not the law because the Act adopting the Code was passed contrary to Article II, Section 17, and Article II, Section 18, of the Constitution, hence the Code and all of its provisions are void.

As to the first proposition: Sections 10498 and 10499 and the addition to section 10500 are not codifications of preexisting statutes. They originated with the Code as *40 did the additional words in section 10500', but t they -were not incongruous changes. They brought the practice ano. procedure in courts of chancery into conformity with existing conditions and practices.

It does not appear from the record whether or not the chancellor designated his chambers as provided by section 10498, but without an affirmative showing to the contrary we are bound by the presumption that he did not act illegally and that he did, by appropriate order pr - viously entered on the minutes at Manchester, designate Winchester as the place of hearing chambers cases in the chancery division.

Referring to the second proposition that the Code enactment is void, the bill “entitled an Act to revise and codify the general and public statutes of the State of Tennessee” was. introduced in both the House and Senate, and passed both Houses on first reading January 13, and second reading January 14. The bill in the Senate passed third reading June 17. The Senate bill, after passing third reading in the Senate, came over to the House in due course of legislative procedure and was substituted for the similar House bill and on June 24 passed; third reading in the House.

This legislative practice and procedure was, long ago, held to be in accord with the constitutional provision regulating the passage of Acts. Archibold v. Clark, 112 Tenn., 532. The recitals in the Journal do not contradict, but support, the presumption that the legislature did not disregard the procedural requirements of the Constitution in passing the Act. They show its passage in each House on three separate readings, show the signatures of the Speakers made in open session, and show *41 approval of the Governor, as required by the Constitution.

The presumption attending the regularity of such procedure overcomes objections unsupported by any affirmative showing to the contrary. See Home Telephone Co. v. Nashville, 118 Tenn., 1, and upon other contentions of complainants as to the slight variance between the caption of the House and Senate hills corrected by amendment before passage, see State v. McConnell, 3 Lea, 341; State ex rel. v. Algood, 87 Tenn., 163; Richardson v.

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Chumbley v. Peoples Bank & Trust Co., 60 S.W.2d 164, 166 Tenn. 35, 2 Beeler 35, 1932 Tenn. LEXIS 109 (Tenn. 1933).

60 S.W.2d 164 (Chumbley v. Peoples Bank & Trust Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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