Engle v. Werner

29 Pa. D. & C. 655, 1937 Pa. Dist. & Cnty. Dec. LEXIS 329
CourtPennsylvania Court of Common Pleas, Dauphin County
DecidedMarch 22, 1937
Docketno. 422
StatusPublished

This text of 29 Pa. D. & C. 655 (Engle v. Werner) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Dauphin County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Engle v. Werner, 29 Pa. D. & C. 655, 1937 Pa. Dist. & Cnty. Dec. LEXIS 329 (Pa. Super. Ct. 1937).

Opinion

Hargest, P. J.,

This case comes before us upon a motion for a new trial and also for judgment n. o. v. The suit was brought upon three notes aggregating $1,600, and was tried in 1934 before Judge Charles V. Henry, specially presiding, resulting in a verdict for defendant. The notes were admittedly given by decedent, Paul H. Werner, to plaintiff, Engle. Werner sold plaintiff a paper box manufacturing business, and he paid therefor the sum of $5,000 in cash and agreed to pay $300 per month on account of the unpaid purchase money and $100 per month for rental of the premises. About four months later Werner desired to repurchase the business. On February 15, 1933, they reached an agreement that Werner pay to Engle the sum which Engle had invested in the business. On that date the three notes in suit were given, payable in 30, 60, and 90 days. On the same day Engle and Werner called upon H. E. Buffing-ton, an attorney living at Lykens, stating that they desired what was termed a “conditional sale” agreement, which was entered into at the time of the original transaction, to be canceled, and the property delivered back to Werner. Buffington told them it would require some time to prepare the necessary papers and that they were to come the following day to execute the transfer. On the following day the parties came. They had agreed that the sum of $5,300 cash should be paid by Werner to Engle but when they met there was some discussion about an additional $100 and Werner gave his check to Engle for the sum of $5,400. The evidence strongly indicated that all the money expended by plaintiff should be repaid by decedent in the repurchase of the plant and also strongly indicated that the amount of these three notes [657]*657was for money which plaintiff had expended. Engle offered four check showing that while he had the plant he had expended $1,603.94. The three notes upon which suit was brought aggregated $1,600, but the $3.94 may well have been interest and at least was disregarded when Werner gave Engle the three notes. The attorney for defendant testified, in effect, that the cash consideration paid at the time of the transfer of the plant was a discharge of all obligations between the parties, but no mention was made of the notes given on the previous day. Judge Henry wrote an opinion concluding that the jury had disregarded certain evidence which was “pointedly called to the attention of the jury” and, no motion for judgment n. o. v. having been made, he allowed the motion for a new trial. From that decision an appeal was taken to the Superior Court, the case was affirmed, and a new trial had, at which Judge Henry also presided, resulting in a verdict for defendant. A motion is now made both for a new trial and for judgment n. o. v. At the second trial the court had the jury answer three questions:

“1. Did Paul H. Werner sign the three notes dated February 15, 1933?

“A. Yes.

“2. Was the $5,400 paid by Werner to Engle in satisfaction of said notes?

“3. Under all the evidence do you find for plaintiff or for defendant?

“A. For defendant.”

Plaintiff now contends that since two juries have rendered the same verdict in the case it would be an abuse of the discretion of the court to interfere with the second verdict. He cites the cases of Douds v. Beaver Valley Traction Co. (No. 1), 51 Pa. Superior Ct. 24; Hegarty et ux. v. Berger, 304 Pa. 221; Armstrong v. Dalasantro, 91 Pa. Superior Ct. 536, and Kelly v. Pittsburg & Birmingham Traction Co., 204 Pa. 623.

[658]*658These cases support the proposition that the preponderance of evidence is to be determined from the quality and not the quantity of it, that the jury is to pass upon the credibility of witnesses and weigh the evidence, and that the verdict will not be set aside merely because the court would have found differently. There can be no dispute as to the correctness of these general principles. The trial judge, however, is not satisfied with the quality of the evidence upon which this verdict was founded, and for that reason would enter judgment notwithstanding the verdict. It is, to say the least, a peculiar transaction for Werner to give Engle three notes for $1,600, payable 30, 60, and 90 days thereafter, and on the next day give him a check for $5,400 in full payment of the notes without mentioning them.

We are of opinion that there is still a more formidable obstacle to the defense against the notes. Section 122 of the Negotiable Instruments Law of May 16, 1901, P. L. 194, 56 PS §274, provides:

“The holder may expressly renounce his rights against any party to the instrument before, at or after its maturity. An absolute and unconditional renunciation of his rights against the principal debtor, made at or after the maturity of the instrument, discharges the instrument. But a renunciation does not affect the rights of a holder in due course, without notice. A renunciation must be in writing, unless the instrument is delivered up to the person primarily liable thereon.”

“Renunciation”, as used in the Negotiable Instruments Law, means “release”, and it is settled that a release cannot be shown by parol but must be in writing when the note has not been surrendered: 2 Daniels on Negotiable Instruments (7th ed.) §1220; 2 Joyce on Defenses to Commercial Paper (2d ed.) see. 997; 8 C. J. 615, sec. 855; Baldwin v. Daly et al., 41 Wash. 416, 83 Pac. 724.

Perhaps the leading case on this subject is Whitcomb v. National Exchange Bank of Baltimore, 123 Md. 612, 91 Atl. 689. In that case the question was, what is the [659]*659meaning of “renunciation” as used in section 122 of the Negotiable Instruments Law? The court said:

“The theory advanced by the defendant is that the provision we have quoted from the Negotiable Instruments Act applies only to renunciations made without consideration, and that it has no reference to releases of liability under agreements which operate by way of accord and satisfaction. . . . Undoubtedly the word ‘renunciation,’ as used in the section quoted, appropriately describes the act of surrendering a right or claim without recompense, but it can be applied with equal propriety to the relinquishment of a demand upon an agreement supported by a consideration. ... We see no occasion to thus narrow its effect, and there is cogent reason for duly regarding its plain and comprehensive significance.”

The court held that a renunciation or release could only be shown in writing where the instrument was not delivered up to the person primarily liable thereon.

To the same effect are Manly v. Beam, 190 N. C. 659, 130 S. E. 633; Page Trust Co. v. Lewis et al., 200 N. C. 286, 156 S. E. 504; Leask et al. v. Dew, 102 App. Div. 529, 92 N. Y. Supp. 891; Tisdel v. Central Savings Bank & Trust Co., 90 Colo.. 114, 6 P. (2d) 912, 918; Portland Iron Works v. Siemens et al., 135 Ore. 219, 295 Pac. 463; Kotzman v. Condit et al., 169 Okla. 422. We have not been furnished with, nor have we discovered, any case directly in point in Pennsylvania. But it must be remembered that this is a uniform negotiable instruments law and therefore the authorities of the highest courts of other States are something more than merely persuasive. In the case of Whitcomb v. National Exchange Bank of Baltimore, supra, the court also said, with reference to the act:

“We see no occasion to thus narrow its effect, and there is cogent reason for duly regarding its plain and comprehensive significance.

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Related

Tisdel v. Central Savings Bank & Trust Co.
6 P.2d 912 (Supreme Court of Colorado, 1931)
Whitcomb v. National Exchange Bank
91 A. 689 (Court of Appeals of Maryland, 1914)
Vanderford v. Farmers' & Mechanics' National Bank
66 A. 47 (Court of Appeals of Maryland, 1907)
Manly v. . Beam
130 S.E. 633 (Supreme Court of North Carolina, 1925)
Page Trust Co. v. Lewis
156 S.E. 504 (Supreme Court of North Carolina, 1931)
Kotzman v. Condit
1934 OK 542 (Supreme Court of Oklahoma, 1934)
Portland Iron Works v. Siemens
295 P. 463 (Oregon Supreme Court, 1930)
Koenig v. Curran's Restaurant & Baking Co.
177 A. 35 (Supreme Court of Pennsylvania, 1935)
Hegarty v. Berger
155 A. 484 (Supreme Court of Pennsylvania, 1931)
Armstrong v. Dalasantro
91 Pa. Super. 536 (Superior Court of Pennsylvania, 1927)
Smith v. Graham
101 Pa. Super. 604 (Superior Court of Pennsylvania, 1930)
Aetna Chemical Co. v. Spaulding & Kimball Co.
126 A. 582 (Supreme Court of Vermont, 1924)
Baldwin v. Daly
83 P. 724 (Washington Supreme Court, 1906)
Leask v. Dew
102 A.D. 529 (Appellate Division of the Supreme Court of New York, 1905)
Leask v. Dew
92 N.Y.S. 891 (Appellate Division of the Supreme Court of New York, 1905)
Douds v. Beaver Valley Traction Co.
51 Pa. Super. 24 (Superior Court of Pennsylvania, 1912)
Stewart v. Hansen
218 P. 959 (Utah Supreme Court, 1923)

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Bluebook (online)
29 Pa. D. & C. 655, 1937 Pa. Dist. & Cnty. Dec. LEXIS 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/engle-v-werner-pactcompldauphi-1937.