Huntington v. W. M. Finch & Co.

3 Ohio St. (N.S.) 445
CourtOhio Supreme Court
DecidedDecember 15, 1854
StatusPublished

This text of 3 Ohio St. (N.S.) 445 (Huntington v. W. M. Finch & Co.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huntington v. W. M. Finch & Co., 3 Ohio St. (N.S.) 445 (Ohio 1854).

Opinion

Bartley, J.

It is insisted on the part of the plaintiff in error that the district court erred in reversing the order of the court of common pleas sotting aside the judgment taken by confession upon the following grounds, to wit:

1. That the setting aside of the judgment in the common pleas was a more matter of discretion with that court.

2. That both the bill and the warrant of attorney to confess judgment had been invalidated by the erasure of the name of H. Cowles & Co., without the consent of Huntington & McIntyre.

3. That the judgment taken was not in strict conformity to the power to make, the confession.

I. If the order setting aside the judgment in the common pleas rested in the discretion of the court, it was not subject to reversal on petition in error. The court of common pleas has ample control over its own orders and judgments during the term at which they are rendered, and the power to vacate or modify them in its discretion. But this discretion ends with the term, and no such discretion exists at a subsequent term of the court. And the power of the court to set aside or vacate its judgments, subsequent to the-judgment term, is governed by settled principles to which the action of the court must conform, and for a departure from which any judgment ©r order may be subject to be reviewed and reversed on proceedings in error.

448] *It is well settled in this state that a judgment may be vacated or set aside on motion, at a term subsequent to the judgment term, for irregularity or improper conduct in procuring it to be entered. And this has become one of the accustomed and settled remedies for relief against judgments wrongfully obtained, where1 [449]*449the impropriety or irregularity has not been superinduced by the fault or negligence of the judgment debtor. McKee v. The Bank of Mount Pleasant, 7 Ohio, 188.

The order of the common pleas, setting aside the judgment under consideration in this case, was therefore subject to reversal on petition in error in the district court, if proper ground existed for such proceeding.

II. Was the instrument, on which the judgment was taken, vitiated by the erasure of the name of H. Cowles & Co.? This paper is as follows:

“$1,000. Columbus, O., November 13, 1851.
“ Thirty days after date, pay to the order of W. M. Finch & Co., at the office of J. Stevenson & Co., the'sum of one thousand dollars, for value received — and we dispense with the proof of demand of payment, protest, and notice of non-payment of the above bill of exchange, and authorize any attorney at law to appear for us and in our names, at anj^ time after the maturity of the same, in any court of record of the State of Ohio, and waive the issue and service of process, and confess judgment in favor of the payee thereof, for the amount of the bill and interest, and the damages allowed by law on protested bills of exchange, drawn on any person, or persons, or body corporate, within the jurisdiction of the United States and without the jurisdiction of the State of Ohio, together with the costs of suit — to release all error and writs of error in law or equity.
“Witness our hands and seals this 13th day of November, A. d. 1851.
(Signed,) “ Huntington & McIntyre.
SEAL.
“ Thos. McIntyre.
"seal."
“H. Cowles & Co. (erased.)
“seal."
“To J. Stevenson & Co., Portsmouth, Ohio.”

It appears that Huntington & McIntyre were principals on this instrument; that the name of the firm of Huntington & McIntyre,, which was composed of Horace F. Huntington and Thomas McIntyre, was written by Huntington, below which McIntyre placed his individual signature; and that the name of H. Cowles & Co. was placed on the paper *Iast, and as surety for Huntington & [449 McIntyre. After the maturity of the paper, when Cowles & Co. were urged to pay the debt, they obtained some delay for themselves by an agreement to stay execution, on giving a separate cognovit, signed by Cowles and Whiting, individually. And when this separate cognovit was given for the debt, the name of H. [450]*450Cowles & Co. was erased from the first paper at the request of Cowles, and with the consent of the creditor; but it does not appear that Huntington & McIntyre, at that time, either knew of, or assented to the erasure. How could this erasure invalidate the instrument? There was clearly no fraud in the transaction. And it would be difficult to perceive how Huntington & McIntyre could be prejudiced bj^ being relieved of the security on their paper by the consent of the holder.

It is true, that it appears to be a settled rule of law, that any material alteration in a deed, promissory note, or bill of exchange, beneficial to the holder, or pai'ty making the alteration, will vitiate the instrument. This doctrine, however, is founded on a presumption of fraud; and the alteration must be such as to effect some change in the meaning or legal operation of the instrument. And the adjudications have not been uniform on the point, whether the burden of explaining an alteration apparent on an instrument devolved upon the holder, or the party sought to be charged. The ¡rule, however, established by the-greater weight of authority, both iin England and in this country, appears to be, that where the alter¡ation is suspicious and beneficial to the holder of the paper, the party ■.seeking to enforce it is required to explain it before he can recover; but where the alteration is not peculiarly suspicious and beneficial to the holder, the alteration will be presumed to have been made .either before the execution of the paper or by the consent of the parties. 11 Conn. 531; 2 Barb. Ch. 119; 7 Barb. S. C. 564.

It appears, however, that in the case before us, the circumstances •450] explanatory of the alteration, were fully before the *court of -common pleas on the motion to set aside the judgment, and that the "erasure of the name of the security on the paper was not beneficial do the holder, and that it was in fact his permission, at the request -of the security. And as the principals could not be prejudiced by .taking the name of their security from their paper, under the circeumstances, and could not be allowed to object to it, wo are unanimous in the opinion that the obligation upon which the judgment was taken was not invalidated by the erasure. The operation of a rule should never be extended beyond the reason of it. When all ¡presumption of fraud was repelled by explanatory evidence, and it was shown that the alteration was made by the consent of the only parties to the instrument whose interests could be in any manner ¡affected by it, the reason for the application of the rule, that a writ[451]*451ten contract may be vitiated by an alteration, was wholly removed. The liability of a surety is not an independent or joint liability, but accessory to that of principal; and the beneficiary of his obligation is the creditor and not the principal. Where, therefore, the creditor allows the surety on an instrument to be discharged, the principal, from the very nature of the relation between him and the surety, would not be allowed to interpose an objection.

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Bluebook (online)
3 Ohio St. (N.S.) 445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huntington-v-w-m-finch-co-ohio-1854.