Ellis v. Peoples National Bank

186 S.E. 9, 166 Va. 389, 1936 Va. LEXIS 201
CourtSupreme Court of Virginia
DecidedJune 11, 1936
StatusPublished
Cited by6 cases

This text of 186 S.E. 9 (Ellis v. Peoples National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ellis v. Peoples National Bank, 186 S.E. 9, 166 Va. 389, 1936 Va. LEXIS 201 (Va. 1936).

Opinion

Hudgins, J.,

delivered the opinion of the court.

The first count in the declaration filed in this case alleges that Mackall M. Ellis was the assistant cashier and [391]*391teller of the Peoples National Bank of Manassas, and that the United States Fidelity and Guaranty Company was surety on his bond; that on December 15, 1933, the representatives of the bank and the bonding company informed Oscar D. Ellis, John P. Ellis, Raymond L. Ellis, and John W. Ellis, partners, trading as Ellis Bros., that Mackall M. Ellis, nephew to some of the partners and brother to others, had embezzled funds of the bank, and that unless the partners permitted the bank to apply $2,100, which they had on deposit, as part payment of the sum embezzled, they would cause Mackall M. Ellis to be arrested and sent to prison for a long term of years. Whereupon plaintiffs paid the sum of $2,100, “which said payment is illegal and without any consideration and the said plaintiffs (the partners trading as Ellis Bros.) are entitled to recover from said defendants (The Peoples National Bank of Manassas, and the United States Fidelity and Guaranty Co.) the said $2,100 with interest from December 15,1933.”

The other count alleges that the consideration for the payment was a promise by defendants to prevent any information of the embezzlement becoming known, or the prosecution of Mackall M. Ellis, and that the “defendants in violation of their promise, made known the said alleged defalcation and had the said Mackall M. Ellis arrested and sent to prison for a long term of years, on account of his said alleged shortage with the said defendant bank and the plaintiffs are entitled to recover from the said defendants the sum of $2,100, with interest from December 15, 1933.”

To the judgment of the trial court sustaining a demurrer to the declaration, this writ of error was awarded.

It is not clear from the declaration on what theory plaintiffs base the action. It is uncertain whether they seek to recover money paid on an illegal contract, or damages for the breach of such contract. In either event there can be no recovery on the facts alleged.

Numerous cases are cited dealing with contracts executed under duress in which recovery was allowed. These [392]*392authorities are not applicable to the facts alleged in this declaration. In Ford v. Engleman, 118 Va. 89, 95, 86 S. E. 852, 855, Judge Keith quoted with approval Elliott on Contracts, section 140, thus: “There are three well defined periods of development in the law relative to duress. By ancient authorities it was held that duress could only exist where there was such a threat of danger to the object of it as was deemed sufficient to deprive a constant, or courageous man of his free will. The resisting power which every person was bound to exercise for his own protection was measured, not by the standard of the individual affected, but by the standard of the man of courage. At a subsequent period it was stated by text-writers and courts of last resort that duress, sufficient to render the contract voidable must be of a nature to overcome the will of a person of ordinary firmness or courage. This statement of the rule is still found in many recent authorities. Within recent years, however, the rule has been further modified and rendered more flexible. Courts now hold and textbooks affirm that the test is not whether the threat was sufficient to overcome the will of a man of courage, or of ordinary courage, hut whether it actually overcame the will of the person threatened.”

In the same case he also quotes from Silliman v. United States, 101 U. S. 465, 25 L. Ed. 987: “Duress by threats does not exist wherever a party has entered into a contract under the influence of a threat, but only where such a threat excites a fear of some grievous wrong; as of death, or great bodily injury, or unlawful imprisonment. * * * But where the threat, whether of mischief to the person or the property, or to the good name, was of sufficient importance to destroy the threatened party’s freedom, the law would not enforce any contract which he might be induced by such means to make.”

Duress is a species of fraud, it is immaterial whether we apply the ancient doctrine that the threat of danger must be sufficient to deprive a constant and courageous man of his free will, or the modified doctrine, that [393]*393the threat must he of a nature to overcome the will of a man of ordinary firmness or courage, or the more recent doctrine, that the threat must be such that it actually overcame the will of the person threatened. The first count in the declaration fails to meet any of the three standards prescribed. It contains no allegation that plaintiffs were put in such fear as to overcome their will in making the payment. The allegation is that defendant threatened to prosecute, not one of plaintiff’s but another business man, who was their kinsman. The general rule is that a contract cannot be avoided because an arrest or prosecution was threatened a third party. In other words the law does not regard the person under duress who enters into a contract to relieve another person and not himself. See 13 G. J. 404.

There is an exception to this rule when the subject of the duress is wife, husband, parent, child, or other very near relative. The American Law Institute, in its Restatement of the Law of Contracts, vol. 2, chapter 16, adopts the more liberal attitude in this class of cases. In section 492 of the 16th chapter, it is stated: “The threat need not be such as would put a brave man, or even a man of ordinary firmness, in fear. The question is rather, did it put one entering into the transaction in such fear as to preclude the exercise by him of free will and judgment? Age, sex, capacity, relation of the parties, attendant circumstances, must all be considered. Persons of weak or cowardly nature are the very ones that need protection. The courageous can usually protect themselves; timid persons are generally the ones influenced by threats, and the unscrupulous are not allowed to impose upon them because they are so unfortunately constituted.”

Eliminating technical language from the first count, it alleges simply that officers for the bank and the bonding company informed four business men that their kinsman was short in his account, and unless the shortage was made good he would be prosecuted. They thereupon paid $2,100 on the amount due by the defaulter. “And where [394]*394per minas is relied on, the plea must state the nature of the threats, as well as the nature of the fear of the execution.” 7 Encyc. PI. and Pr. [1897 Ed.], p. 248. See Keckley v. Union Bank of Winchester, 79 Va. 458; Rock v. Mathews, 35 W. Va. 531, 14 S. E. 137, 14 L. R. A. 508; Ford v. Engleman, supra; Cobb v. Vaughan & Co., 141 Va. 100, 126 S. E. 77, 43 A. L. R. 177; Gloth v. Gloth, 154 Va. 511, 552, 153 S. E. 879, 71 A. L. R. 700.

The word “compelled” in the first count of the declaration, suggests duress of that rare class of cases in which the person compelled, or coerced, is a mere mechanical instrument in performing the act apparently indicating assent. An illustration of this class is where A, under the hypnotic influence of B, signs his name to a note, or other contract, and is ignorant of the fact that he signed anything.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kephart v. Clarke
W.D. Virginia, 2022
Todd v. Blue Ridge Legal Services, Inc.
175 F. Supp. 2d 857 (W.D. Virginia, 2001)
Wilkerson v. Creedle
37 Va. Cir. 234 (Richmond County Circuit Court, 1995)
Meredith v. Meredith
39 Va. Cir. 590 (Virginia Beach County Circuit Court, 1994)
Freedlander, Inc. v. NCNB National Bank of North Carolina
706 F. Supp. 1211 (E.D. Virginia, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
186 S.E. 9, 166 Va. 389, 1936 Va. LEXIS 201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellis-v-peoples-national-bank-va-1936.