Horowitz v. Shober

3 Pa. D. & C. 844, 1923 Pa. Dist. & Cnty. Dec. LEXIS 105
CourtPennsylvania Court of Common Pleas, Berks County
DecidedMarch 19, 1923
DocketNo. 88
StatusPublished

This text of 3 Pa. D. & C. 844 (Horowitz v. Shober) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Berks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Horowitz v. Shober, 3 Pa. D. & C. 844, 1923 Pa. Dist. & Cnty. Dec. LEXIS 105 (Pa. Super. Ct. 1923).

Opinion

Schaeffer, P. J.,

Orphans’ Court, specially presiding, The plaintiff in this action declares upon a promissory note made by the defendant to him on June 4, 1921, at any day after date for $1152.71, claiming that amount, with interest from June 5, 1921.

[845]*845The defendant filed an affidavit of defence, admitting the execution and delivery of the note, but denying the right of the plaintiff to recover thereon because of his failure to perform an obligation on the strength of which the note was given.

At the trial of this ease, the material facts which form the basis of this controversy appeared to be as follows: In April, 1921, the plaintiff, an automobile dealer, sold to the defendant an automobile truck for the sum of $6952.71. The truck was delivered to the defendant on or about May 27, 1921, whereupon he paid to the plaintiff the sum of $5800 in cash, and gave in settlement of the balance the note in suit for $1152.71.

The defence made at trial was that, at the time of the execution of the note by the defendant, a promise was made by the plaintiff, which was the inducing cause for said purchase and delivery of note, that if there should be a drop in the price of the trucks similar to the one sold to defendant by plaintiff within twelve months, plaintiff would protect defendant against such decline and make good any loss defendant might sustain.

The defendant offered testimony to show that sometime in October, 1921, a new price list of trucks similar to the one purchased by defendant went into effect, and that this list showed a reduction in price of $1150 upon the model of the truck in question. This evidence was not contradicted at the trial by the plaintiff, but when it was introduced with the parol agreement that there should be an allowance for any drop in price, his counsel objected on the ground that the defence was a set-off and that it was not pleaded in compliance with the Practice Act of May 14, 1915, P. L. 483. We overruled the objection, admitted the evidence, and, after trial of the cause, both sides having asked for binding instructions, the jury rendered a verdict in favor of the plaintiff for $2.71, the amount admitted to be due by defendant on the note in suit after giving him credit for $1150, which represented his loss. Thereupon the plaintiff obtained this rule on Jan. 20, 1923.

The affidavit of defence, after stating the facts and circumstances connected with the sale and purchase of the automobile, and averring the parol agreement as to the decline in prices and the promise on part of plaintiff to refund, contains the following averment set forth in paragraph 4:

“Sometime about October, 1921, a new price list of trucks similar to the one purchased by defendant went into effect. This list showed a mark-down of $1150 upon the model of the truck in question. Defendant thereupon requested plaintiff to cancel and return to him the said note of $1152.71, offering at the same time to pay the interest on the note from its date to the time of said demand, together with the sum of $2.71, being the amount which the note exceeded the amount of guaranty.”

The affidavit was neither served on plaintiff nor was it endorsed, notifying him to file a reply within fifteen days from the service thereof.

When the objection was made by plaintiff’s counsel to the inadmissibility of the evidence bearing on the question of damages suffered by defendant, as set out in the affidavit of defence, because it was not properly pleaded under the Practice Act, defendant’s counsel answered thereto that “the defendant proposes to prove a warranty on the part of plaintiff which would be equivalent to any possible reduction in the price of the article purchased within the period of twelve months from the date of the purchase; a breach of that warranty, and a credit by way of recoupment on the part of the defendant.” We overruled the objection and admitted the testimony. We are now convinced that this was error and that the testimony was improperly admitted on the pleadings as they now stand.

[846]*846The defence of recoupment cannot be made at the trial, where the defendant has failed to plead it in the manner required by the Practice Act. The position that recoupment is not embraced in the terms of the Practice Act, and that it is a common law right which can still be asserted in an action of law independently of it, is untenable. While it is true that in actions ex contractu the defendant could, as an equitable defence, recoup his damages to the extent of plaintiff’s claim arising out of the same transaction on which suit was brought (Heck v. Shener, 4 S. & R. 249; Shaw v. Badger, 12 S. & R. 275; Hunt v. Gilmore, 59 Pa. 450; Eckel v. Murphey, 15 Pa. 488; Roth v. Reiter, 213 Pa. 400) under the plea of the general issue, without putting in a special plea or giving notice of set-off, this, however, is no longer permissible, because set-offs and counter-claims can only be set up as a defence at the trial after a full compliance with the statute law regulating the practice on this question. -

Section 14 of the Practice Act of May 14, 1915, P. L. 483, 485, provides: “In actions of assumpsit, a defendant may set off, or set up by way of counterclaim against the claim of the plaintiff, any right or claim for which an action of assumpsit would lie, and a verdict may be rendered in his favor for the amount foundl to be due, and judgment entered thereon.”

It will be observed that the definition of counter-claim is very comprehensive, and that it includes any right or claim for which an action of assumpsit might lie.

“Recoupment, at common law, is the right of the defendant in the same action to claim damages from the plaintiff, either because he has not complied with some cross-obligation of the contract on which he. sues or because he has violated some duty which the law imposed on him in making or performance of that contract:” 24 Ruling Case Law, 793. “Recoupment goes to the justice of the plaintiff’s claim, and no affirmative judgment can be had thereon.” “A counter-claim is a claim presented by a defendant in opposition to, or deduction from, the claim of plaintiff. A species of set-off or recoupment introduced by the codes of civil procedure in several states, of a broad and liberal character, and embraces, as a general rule, both recoupment and set-off, although broader and more comprehensive than either:” 34 Cyc., 629. “Counter-claim is the equivalent of set-off and recoupment combined, and the counter-claim authorized by many statutes is an enlargement of the scope of set-off and recoupment:” 24 Ruling Case Law, 794.

The counter-claim as defined in the Practice Act undoubtedly embraces recoupment at common law, because, as before stated, the language of the act is very comprehensive and designed to cover all sorts of claims which a defendant may have against the plaintiff for which an action of asswnpsit would lie.

In the case at bar, the defendant has a remedy in assumpsit for a breach of the contract by the plaintiff to make good the loss he suffered by reason of the decline in the price of the trucks, the damages for which can be easily measured, and, consequently, the defence would come within the scope of the language in the Practice Act which speaks of any right or claim for which any action of assumpsit would lie.

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Bluebook (online)
3 Pa. D. & C. 844, 1923 Pa. Dist. & Cnty. Dec. LEXIS 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horowitz-v-shober-pactcomplberks-1923.