Gray v. Herman

6 L.R.A. 691, 44 N.W. 248, 75 Wis. 453, 1890 Wisc. LEXIS 6
Wisconsin Supreme Court·Decided January 7, 1890·Published·Cited by 13 cases

Opinion

Cole, C. J.

We fail to perceive any sufficient ground or reason for excluding the evidence offered to show payment for the machines and repairs by Gurney. The answer alleged that the account of Davelaar was assigned to and accepted by the plaintiffs in full discharge and satisfaction of the debt, and for the machine mentioned in the first cause of action, and for the repairs mentioned in the third. And the defendant attempted to prove by Gurney that all the claims in suit had been paid, but the evidence was excluded, As we have observed, we perceive no valid reason, upon the facts, of the case, for excluding the evidence. In the charge of the learned circuit judge, he says that, in his [457] opinion, it was not competent for the party sued to plead payment by another party who was not sued and could not be affected by the judgment. 'Why not, if it is shown that the creditor accepts the payment in satisfaction of the debt? Can it be said that the obligation is still in force? What sense or reason is there in any such technical rule as that, if it exists ? The plaintiff’s counsel says that the satisfaction of a debt by a stranger, between whom and the defendant there is no privity, is not available to the debtor as a defense. But again we ask, why should it not be, if the creditor accepts the payment in satisfaction of the debt? If a debt is fully paid, it would seem, according to plain common sense, that the obligation was extinguished and is no longer in force as a contract. What concern is it to the creditor who pays his debt, especially where he accepts the payment made in satisfaction of his debt?

But in this case the evidence is entirely conclusive that Gurney and the defendant were not strangers to each other in these transactions. Even if the defendant is liable as the original promisor, it is clear that he was purchasing the machines for the benefit of Gurney rather than for himself. Gurney was deeply interested in the payment of all these claims, even if they could be enforced against the defendant and not against him. This is too obvious from the testimony to require any argument to establish the fact. Although he was not a party to the record, yet the facts show that he was no stranger to these claims. We have examined the cases to which we were referred in support of the position that payment by a third party cannot be availed of by the defendant as a defense unless such payment was made by the debtor’s agent or by some one authorized by the debtor to make it. We do not think these cases are in point. Some of them relate to the defense of accord and satisfaction, and hold that, to sustain such a plea, an accord must be completely executed; that a part [458] execution and tender of performance of the residue is insufficient (Russell v. Lytle, 6 Wend. 390; Kromer v. Heim, 75 N. Y. 574); while Mathews v. Lawrence, 1 Denio, 212, and Atlantic Dock Co. v. Mayor, 53 N. Y. 64, hold that in a suit upon a judgment, which judgment was recovered for a cause of action which could exist only against one, it was no defense that the plaintiff had recovered a judgment for the same cause of action against another person, which had been paid, and that a cause of action ex delicto was not extinguished by a recovery and satisfaction of a judgment against a stranger in no wise joined in liability with the defendant, for the full amount of the damages claimed, nor is the plaintiff estopped thereby. Whether these decisions are in harmony with Ellis v. Esson, 50 Wis. 138, where it is impliedly decided that full compensation for an injury made by one of several wrong-doers is a bar to an action against the wrong-doers, we shall not stop to determine. The case of Clow v. Borst, 6 Johns. 37, is rested on the authority of Grymes v. Blofield, Cro. Eliz. 541, but this account is given of the latter case in a note of Edycombe v. Rodd, 5 East, 294, as the decision: “If the condition of an obligation be to pay 201. at a certain day, and a stranger surrender a copyhold to the use of the obligee, in satisfaction of the 201., which the obligee accepts, this is a good satisfaction and discharge of the obligation,” Edgcombe v. Rodd decides nothing in conflict with that proposition.

But we will not prolong the discussion of this point, but conclude what we have to say upon the question with the remark that we can perceive no ground, in reason or in law, for excluding the evidence of payment of the claims by G-urney. If these debts were really paid and satisfied by him, the defendant should have the benefit of the defense. Whether the payment was made by his authority or not, he surely ratified the act by seeking to avail himself of it on the trial. It was error to exclude the evidence.

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Gray v. Herman, 6 L.R.A. 691, 44 N.W. 248, 75 Wis. 453, 1890 Wisc. LEXIS 6 (Wis. 1890).

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