Kerr v. Meredith

4 Yeates 282
CourtSupreme Court of Pennsylvania
DecidedMarch 15, 1806
StatusPublished
Cited by4 cases

This text of 4 Yeates 282 (Kerr v. Meredith) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kerr v. Meredith, 4 Yeates 282 (Pa. 1806).

Opinion

The reasons in arrest of judgment were argued this term; but the sixth exception was abandoned as indefensible.

The arguments for the defendant were substantially as follow.

Exception 1st. The jury are bound to find the whole issue; but they have consolidated four distinct debts submitted to them into one mass, making a sum total of $1844 and 25 cents. The verdict must not only,be substantially good in itself, but it must be good with reference to all the pleadings. Here the verdict does not pursue the replication and rejoinder. There was no con[286]*286solidated debt due to four different firms put in issue ; nor was it ever pretended that such joint debt existed. Under the statute of 8 and 9 Wil. 3, on nil debet, the jury must assess the damages upon each breach. 2 Wils. 377.

The court have it not in their power to mould this verdict into form, in the present particular. Neither their own notes, nor those of the clerk, will serve as a guide on the occasion. The jury must find the substantial facts, on which the court *only can act. The defendant did not interfere in the „ formation of the verdict; the notes returned by the jury ' when they came to the bar, must be taken with all their crossings and obliterations. From these memoranda, nothing can be collected.

Exception 2d. At common law, in debt upon a bond with condition to perform covenants, the plaintiff could assign only one breach; but in covenant, he might assign as many breaches as he pleased. Bull. 163. Cro. Cas. 176. This is altered by stat. 8 and 9 W. 3. c. 11. s. 8, and the plaintiff may assign as many breaches as h,e shall think fit; and the jury shall assess damages for such of the said breaches, as the plaintiff shall prove to have been broken. This statute is compulsory on the plaintiff. 5 Term Rep. 541, 636. 1 Saund. 58. Williams’s Note. In 2 Burr. 773, Mr. Caldecott states, that the statute does not extend to actions of debt brought for the penalty of a bond; it only relates to actions for damages for non-performance of covenants ; and in such cases, enables the plaintiff to assign as many breaches as he shall think fit. Lord Mansfield agrees, that his principles are right. Ib. 774. Here the declaration does not pursue the statute ; nor is it found by the jury, that the plaintiff has sustained damage by non-payment of the company debts ; and therefore the verdict is not within the words or meaning of the statute. The assessing of damages is a legal term, and conveys a determinate idea. Juries are peculiarly the judges in cases of damages ; they might consider that the contract was entered into by mistake or misapprehension ; they have found damages to the plaintiff for the arrest, but not as to the nonpayment of the company debts ; and this is conceived to be an incurable defect.

Exception 3d. The statute of Wil. 3, was made for the benefit of the plaintiff on a breach of covenants, not of persons who are strangers to the record. The verdict is good only so far as it finds the 10 cents damages to the plaintiff for the arrest, at the suit of Gregg, Lyle and Ewart. Nothing can prevent the creditors from recovering their debts a second time, if this verdict should receive the sanction of the court.

Exception 4th. It cannot be believed, that the agreement of 12th March 1804, as entered on record, was intended to alter the rights of the parties, or precipitate the recovery by the creditors.

Each claimant is to establish the quantum of debt or damages by legal process and adjudication. The construction set up [287]*287against us, is, that the creditors may establish their debts en masse; and varies the agreement, which necessarily refers to a separate process by each creditor, whose claim may be contested.

Exception 5th. The object of the bond and articles was the relief of Kerr himself, not of the creditors of the firm. He £ , *might have delivered up to the obligors their bond 28 J without the concurrence of the partnership creditors ; he might have cancelled it himself. The obligation was intended to indemnify Kerr; but merely being liable to a suit, is no dam-nification. The surety of an obligor is no creditor, until he has paid the debt. This is fully proved by Smith et al. v. Gale, 7 T. R. 364, and by Hammond et al. v. Toulmin et al. Ibid. 612. In this state, an assignee is subject to all the equity of his assignor. If the creditors had released their debts, the defendant would not have been liable.

The plaintiff’s counsel arranged their arguments under three general heads. They considered, 1st whether if the pleadings were correct and the verdict good, the plaintiff was not intitled to recover ?

2dly. Are the allegations of the plaintiff sufficiently penned in point of legal form ?

3dly. Is the verdict substantially good, so as to authorize a judgment to be entered thereon ?

I. The articles of agreement contemplated three objects. 1st. That the debts of the partnership should be paid, at two stipulated periods. 2d. That Kerr should be fully indemnified therefrom. And 3d. That he should receive $9000, for his concern.

The bond was given accordingly; the payment of the company debts was a substantive, independent covenant. Kerr has only received his $9000. It is clear therefore, that the bond was designed to operate further than a complete indemnification. If on the 1st October 1798, the partnership debts were not paid, the plaintiff had a complete ground of action. A counter bond is forfeited by non-payment of the money at the day. 2 Bulst. 234. The 'principal case is much stronger. For if but a simple debt remained unpaid.after the day fixed, the plaintiff had immediately a good cause of suit. He was under no necessity of paying the money in the first instance. Every word in the instrument must receive its full operation. At the same time it is admitted, that the assignees have no superior equity to the obligee, and that if the partnership creditors had released their debts, the substantial spirit of the contract would have been so far complied with.

The agreement of 12th March 1804, took place after the argument had begun on the plea in abatement. The first suit was brought for the use of Lang and Hawthorne, and a second suit for the use of Taylor and Lyle, under the agreement, both ac[288]*288tions were consolidated for the use df all the creditors ; but each claimant was to establish his demand by legal process and adjudication. *Separate suits are not contemplated hereby, r# o but that the obligors should have an opportunity of con- i 2°9 testing the claim of each creditor, under the bond. The agreement was made for the benefit of the creditors generally, with every degree of caution as to the interests of the obligors ; and nothing can defeat it, unless it impugns legal principles, which we contend to be in perfect unisonMherewith.

II. In almost all the instances in the books, declarations on bonds with special conditions take no notice of the conditions. They are usually declared upon as on bonds, conditioned to pay a sum of money at a certain day. If the defendant pleads generally a performance of the condition, the plaintiff in his replication must set out a breach or breaches, and tender issues thereon. In the assignment of the breaches, the stat. of 8 and 9 W. 3, c. 11, need not be mentioned; and the more specially the breaches are stated, the fuller opportunity is given to the defendant of repelling the demand against him.

The assertion in 2 Burr.

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Bluebook (online)
4 Yeates 282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerr-v-meredith-pa-1806.