Hilb v. Peyton

21 Va. 386
CourtSupreme Court of Virginia
DecidedSeptember 19, 1871
StatusPublished

This text of 21 Va. 386 (Hilb v. Peyton) 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
Hilb v. Peyton, 21 Va. 386 (Va. 1871).

Opinion

Christian, J.

This is a supersedeas to a judgment of the Circuit court of Augusta county.

It was an action of covenant brought upon a contract under seal in the following words :

§5,000. Two years after date, for value received, we promise and bind ourselves jointly and severally, to pay to Simon H. Hilb, his heirs and assignees, the sum of five thousand dollars, without interest, and in such funds as the banks receive and pay out. Witness our hands and seals, &c.

Signed, J. B. Peyton, [Seal.]

Wm. H. Peyton, (Sec.,) [Seal.]

Geo. L. Peyton, “ [Seal.]

Thos. H. Peyton, [Seal.]

Bated June 9th, 1868.

The defendants pleaded “ covenants performed,” and gave notice that they should insist that the debt should be scaled under the adjustment act.

The plaintiff, to sustain the issue on his part, produced the obligation sued upon, and then proved that at the the maturity of said obligation, to wit: on the 9th day of June 1865, the funds received and paid out by the banks were greenbacks and National bank notes, which were at that time worth', as compared with gold, from §135 to §145 of currency to §100 of gold. The plaintiff there rested his case. The defendants, on their part, proved that the bond in controversy was given fora loan of §5,000 in Confederate States treasury notes, and there rested their case. And, thereupon, the plaintiff) Hilb, was introduced and examined, to prove the true understanding and agreement of the parties in respect to the kind of currency in which the contract was to be performed. He proved that he was engaged in business in Staunton, and was not a money lender: that when applied to by one of the defendants for a loan of money, he declined; but that upon a second application, he agreed to make the loan upon the terms stated in the bond. [388]*388And that in accepting these terms, he expected to receive at the maturity of the bond, a better currency than that which he loaned.

The defendants then introduced J. B. Peyton, one of the defendants, who proved that ho was the principal in the bond ; and was the party with whom the negotiations were had. He confirmed the evidence of the plaintiff as to his refusal, at first, to make the loan, and his subsequent agreement to loan on the terms stated in the bond. Tins witness proved that he regarded the contract to some extent as a contract of hazard ; that he had faith in the Confederate cause ; that wheu he made the contract he expected to discharge it in Confederate treasury notes ; and that the hazard of the contract was the appreciation or depreciation of that currency. He also proved that he wrote the bond upon "which this action was brought.

ffm. H. Peyton, another of the defendants, also proved the unwillingness of the plaintiff to loan the Confederate treasury notes at first, but his subsequent agreement to do so upon the terms set forth in the bond. This ■witness also proved that the verbal understanding between the parties prior to the loan, was correctly expressed in the bond. The defendants also introduced the scale of depreciation of Confederate treasury notes, showing that at the date of the bond they were worth from 7J to 8 lor one in gold. These were all the facts proved as certified by the court below. Upon these facts the jury found a verdict for the plaintiff, and assessed his damages at $625 in gold, with interest from the 9th of June 1868, till paid : the jury having scaled the debt according to the scale of depreciation of Confederate treasury notes. A motion was made by the plaintiff, to set aside the verdict and grant a new trial; which was overruled by the court; and a judgment entered for the amount found by the jury. A writ of error and supersedeas to that judgment brings up the case to this court.

The case presents, here as it did to the court below, a [389]*389single question, and that is, what is the legal construction and legal effect of the contract which the parties entered into, reduced to writing, signed and sealed for - themselves? That writing, and that alone, must be looked to as containing the true understanding and agreement of the parties. Clearly, and beyond all question, that writing bound the obligors to pay five thousand dollars, without interest, in such currency as the banks should receive and pay out at its maturity, to wit: on the 9th day of June 1865. The only parol evidence necessary or proper to be introduced, to fix the measure of their liability, was, in reference to the kind of currency received and paid out by the banks two years after the date of the obligation. If, at the maturity of the bond, the banks were receiving Confederate treasury notes, then it was solvable in that currency ; if the banks were receiving and paying out gold and silver, then it was solvable in gold and silver; and if they were receiving and paying out national currency and greenbacks, then the obligation was solvable in that currency. This is the plain and unmistakable meaning of the terms employed by the parties, and the plain, legal effect of their obligation. It is difficult to conceive what form of words could have been employed, more- plainly to express their meaning, than those which have been written and signed by the parties.

The words used import their own meaning, the language employed furnishes its owii construction, so plain to any mind as to admit of no controversy ; indeed, so plain that every argument advanced by the learned counsel for the defendant in error here, might have been fully answered by simply reading the bond. It was not a case in which parol evidence was admissible, and if objected to it ought to have been excluded. The learned counsel for the defendants in error, invokes the aid of the statute known as the “ adjustment act,” to justify the admission of parol evidence in such a case as this, [390]*390and indeed iu all other cases where the contract, no matter what may be its terms, is made between the 1st of January 1862 and the 10th of April 1865. I cannot assent to this broad and unlimited construction. It is not warranted either by the letter or the spirit of the statute. The section relied upon is in these words: In any action or suit or other proceeding for the enforcement of any contract, express or implied, made and entered into between 'the 1st day of January 1862, and the 10th day of April 1865, it shall be lawful for either party to show by parol or other relevant evidence, what was the true understanding and agreement of the parties, either expressed or to be implied, in respect to the kind of currency in which the same was to be fulfilled or performed, or with reference to which, as a standard of value, it was made and entered into.” &c. blow, by the very terms of this section, the parol evidence to be admitted under it, is confined and limited to the hind of currency in which the contract is to be fulfilled or performed. Where the parties themselves have stipulated in writing as to the hind of currency in which the obligation is to be fulfilled or performed, then this section clearly does not apply. It is only in a case where the parties have not stipulated plainly and unmistakably as to the kind of currency in which the obligation is- solvable, that parol evidence can be heard. The statute became necessary because of the use, in contracts during the -war, of the word dollars,

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Bluebook (online)
21 Va. 386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hilb-v-peyton-va-1871.