First National Bank v. Chaffin

118 Ala. 246
Supreme Court of Alabama·Decided November 15, 1897·Published·Cited by 40 cases

Opinions

McCLELLAN, J.

This action is prosecuted by the appellant bank against John W. and M. A. Chaffin for the recovery of money which defendants by writing under seal had promised to pay W..F. Smith, the transferror of plaintiff. Defendants pleaded: (1) payment; (2) payment to Smith without notice that the obligations had been by him assigned to plaintiff; (3) payment to Smith shortly after maturity, and that the bonds Avere then surrendered to them by Smith; and (4) payment to Smith Avho had the obligations for collection as agent of the bank, and who upon such payment surrendered the same to defendants. Plaintiff filed replications to said pleas as follows: “1st. That all the said pleas are untrue. 2nd. That said defendants are estopped from setting up said defense in said suit, for that before the bringing of this suit, and after the said notes fell due and after notice from said plaintiff that it held said notes [and after the time defendants claim. to have paid said, no tes], the defendants stated to the plaintiff that they were indebted upon said notes in the sum of $125 or $150, and agreed with the said plaintiff to pay said sum, and that upon the said statement and representation of the said defendants the said plaintiff brought this suit, and plaintiff alleges that said defendants are estopped thereby, and cannot set up the said defense herein sought to be pleaded.” Defendants’ demurrer to this replication Avas sustained by the court; and the propriety of that ruling is challenged by the first assignment of error.

The demurrer was properly sustained. The gist of the replication is that defendants admitted owing a balance on the notes, and promised to pay it. The admission can operate only evidentially as going to show indebtedness, and not by way of estoppel to show the truth of the admission to the contrary notwithstanding. And the promise to pay is not supported by a consideration unless in point of abstract fact there was an unpaid balance; in AAhich latter case the promise would be of no advantage to plaintiff — except, perhaps, as tending to show a balance unpaid on the original obli[256] gation — since recovery could be had on the notes themselves without the new promise. The case of Myers v. Byars, 99 Ala. 484, upon which reliance is put by appellant- in this connection, is clearly distinguishable from- the case at bar. In -that case Myers agreed with Byars and Landrum-to hold $1,000, part of a certain fund, to awmit the decision of the courts as to whether 'that sum belonged to Byars or not, and the action against Myers for the-sum he thus agreed to hold was brought upon his - assurance to Byars that he had received the fund and then had it. Mj^ers was held estopped .to disclaim or deny his receipt - and possession of the fund, on the same principle that a party wdio represents that he has possession of chattels, choses in action or valuable papers, and thereby -induces an action of detinue for their recovery, is held estopped to deny or disclaim such possession. — -Sullivan et al. v. Conway, 81 Ala. 153; Hall v. White, 3 C. & P. 136. But the principle has never been applied to a mere admission of indebtedness.

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First National Bank v. Chaffin, 118 Ala. 246 (Ala. 1897).

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