Horner v. Speed

2 Patton & Heath 616
CourtCourt of Appeals of Virginia
DecidedJanuary 15, 1857
StatusPublished
Cited by19 cases

This text of 2 Patton & Heath 616 (Horner v. Speed) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Horner v. Speed, 2 Patton & Heath 616 (Va. Ct. App. 1857).

Opinions

THOMPSON, J.

On the 19th November, 1841, John M. Speed became the accommodation endorser of Jas. E. Horner upon a note of $2,000, negotiable and paj’able at the Farmers Bank of Virginia at Lynch-burg. Horner had the note discounted, and received the proceeds. At maturity it was protested, and Speed had the money to pay, and thus became the creditor of Horner for that amount and the charges of protest.

On the 7th March, 1842, Horner together with Wm. H. Watson, styling themselves merchants and partners, under the firm of Horner & Watson, filed their petition in the United States Court for the Eastern District of Virginia, praying to be decreed and declared bankrupts, upon which such proceedings were had, that on the ISth September, 1842, they were finally discharged from all their debts and liabilities — that to the appellee above-stated included. There was filed with the petition three lists of debts, to wit, of the partnership debts and of the individual debts of each partner. This debt appears on the list of Horner’s individual debts, and though the commissioner in' bankruptcy reports that Horner made affidavit before him that the proceeds of the note were applied to the partnership uses, and thereby became a partnership liability, and though it may be so regarded as between the partners, yet as to Speed it must be regarded as the individual debt of Horner; but whether regarded as the individual debt of Horner, or a social debt, he was equally discharged *from it by the decree of bankruptcy and certificate of discharge — the effect of the proceeding, although upon a joint or partnership petition, béing to discharge both Horner and Watson from all their individual and partnership debts and liabilities, proved or provable under the commission.

According to the pretensions of Sneed, Horner several times after his discharge [863]*863(without locating the time when) promised to pay the debt as soon as he was able, and recently, before the 5th November, 1849, promised absolutely and unconditionally to pay.

On the 12th January, 1850, Speed brought indebitatus assumpsit, grounding his action on these alleged new promises. The declaration contains two counts, the first relying on the unconditional promises made in the fall of 1849; the second on the promise to pay when able, and averring Horner’s ability to pay.

Horner (defendant in the court below) demurred to the whole declaration for a misjoinder of counts, objecting to the competency of joining upon conditional and unconditional promises in the same declaration, and then demurred to each count separately: to the first, because it did not declare upon the original cause of action, i. e. the note extinguished by the decree in bankruptcy, and to the second, because it did not state in what the defendant’s ability to pay consisted.

The demurrers to the declaration and to each count being overruled by the court, the defendant pleaded non-assumpsit and non-assumpsit within five years, and, on these pleas, issues were severally joined. He then tendered four pleas, (in addition to the pleas of non-assumpsit and non-as-sumpsit within five years, on which issue had been joined,) numbered in the record 3, 4, 5 and 6, all of which the court rejected, and for which rejection he took several bills of exception.

No. 3 is a plea of the act of limitations in a special form, relying, upon the lapse of time (more than five years) between the discharge in bankruptcy and the bringing of this suit, and denying that any new promise *or any acknowledgment was made in the form (to wit in writing) necessary to re-bind a party protected by the Tenterden act of limitations, enacted in England in 1826, and in Virginia in 1828. I state the substance, not the language or a literal transcript of the plea.

No. 4 relies upon the same statute of limitations, as applicable to the time elapsed since the accrual of the original cause of action, and between that time and the institution of this suit.

No. 5 is simply a plea of discharge in bankruptcy to a deblaration, alleging and counting upon new promises or assumpsits since the discharge.

No. 6, though differing in form, is in substance and legal effect the same as No. 4, being nothing more than the plea of the statute of limitations, (without indicating any- reference to the Tenterden act,) to the promissory note, which was the foundation of the original cause of action, oyer of which was craved and granted, though not according to the strict forms of pleading demandable, as appears from the introductory part of the plea.

After the demurrers were overruled and the four additional pleas tendered were rejected, the cause came on for trial, and a jury was impanneled and sworn to try the issues joined upon the pleas of non-assump-sit and non-assumpsit within live years. The plaintiff’s evidence being heard, and none offered on the part of the defendant, he demurred thereto, and there was a joinder in the demurrer: whereupon the jury returned a verdict for the plaintiff for $2,000, with interest from the 4th of February, 1842, subject to the opinion of the court upon the demurrer, and the court gave judgment for the damages ascertained by the verdict upon the demurrer to evidence.

This judgment is brought up for examination and review by supersedeas awarded upon a petition assigning errors in the rulings of the court below, in overruling the demurrers to the declaration and the several counts, in rejecting the four special pleas before mentioned, and *in overruling the defendant’s demurrer to the plaintiff’s evidence. The demurrers to the declaration for a misjoinder of counts and to the second count, because it did not aver in what the defendant’s ability to pay consisted, are so manifestly untenable, as to render it unnecessary to bestow on them a moment’s consideration; for if not expressly abandoned and surrendered by the counsel of the plaintiff in error, they were not insisted on in argument. Very little was said by the counsel (and that little with no seeming confidence in the point) in support of the demurrer to the first count, because it did not declare on the original cause of action — i. e. a cause of action discharged and extinguished by a decree and certificate of discharge in bankruptcy. Indeed, they seemed to surrender it, by not seriously insisting on it. If insisted on it could not be sustained either on principle or authority. Inasmuch as the new promise constitutes the cause of action, the old debt being only the consideration to support the promise, if it were a new question, it would, upon principle and upon the theory of actions, seem very clear that the plaintiff would be compelled to count upon the new promise as the real cause of action; and assimilating this to the new promise to pay a debt barred by-the statute of limitations, the case of Butcher v. Hixton, 4 Leigh, 519, and Bell v. Morrison, 1 Peters, 371, and others that might be cited, would be authority for holding that the creditor must declare on the new promise. But the authorities, ancient and modern, English and American, with but few exceptions, have otherwise settled the question, and according to Parsons, in his treatise on Contracts, new edition, 1855, vol. I. pp. 308-9, have held, “that where a new promise is made, it does not seem to be necessary to declare upon it as the foundation of a suit, but an action may be brought upon the old promise, and the new promise will have the effect of doing away the obstruction otherwise interposed by the bankruptcy and discharge. Bxtt if the new promise be conditional, then *the party seeking to enforce it [864]

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Bluebook (online)
2 Patton & Heath 616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horner-v-speed-vactapp-1857.