King v. Hutchins

28 N.H. 561
CourtSuperior Court of New Hampshire
DecidedJuly 15, 1854
StatusPublished
Cited by2 cases

This text of 28 N.H. 561 (King v. Hutchins) is published on Counsel Stack Legal Research, covering Superior Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
King v. Hutchins, 28 N.H. 561 (N.H. Super. Ct. 1854).

Opinion

Woods, J.

Several questions are presented by the facts found by the auditor’s report, and submitted :

1. On the third of January, 1842, the plaintiff gave his note to the defendant, payable to Hutchins & Buchannan, for $1,224,42, for considerations and purposes indicated in the report, and to which we shall have occasion, in the sequel, to advert more particularly. At the same time he gave him, or placed at his control, several notes of Allen and Deming, amounting in all to $500, besides interest, as collateral security for the note of $1,224,42. To provide further for the payment of this note, it was arranged, that the defendant should have the surplus avails of certain personal property, mortgaged to secure an earlier note from the plaintiff to him, and should also bring an action, and attach a certain equity of redemption, which the plaintiff had in some real estate. In pursuance of this arrangement, the mortgaged chattels were sold, and a surplus of $136,94 remained, after discharging the mortgage and expenses of sale. The equity of redemption was also sold, to satisfy the judgment recovered upon the note of $1,224,42, in [573]*573April, 1842, and tbe clear sum of $662,47 was realized. These sums being applied upon the judgment, with proper allowances of interest, there remained due $449,30. To pay this sum, the money received by the defendant upon the Allen and Deming notes, which were paid in full, was strictly applicable and must be treated as having actually been go applied, in an equitable adjustment of the claims between the parties. The excess, after satisfying the judgment, must clearly be regarded as money held by tbe defendant for the plaintiff’s use. There seems to be no reason, upon this state of facts, why an action of assumpsit for money had and received, does not lie to recover it.

2. When the plaintiff gave the note of $1,224,42 to the defendant, he was indebted in several sums of money, specified in the report, to the Grafton Bank, Mr. Underwood, Mr. Goodall, and Mr. Shedd. The amount of these several debts constitute a part of the sum of $1,224,42, and the defendant promised to pay them, and that was a part of the consideration for which the note was given. The debt due to Mr. Underwood he did pay, the others he did not; but, on the contrary, before the commencement of this suit, the sureties upon the note to the bank, were called on to pay the debt, and did pay it, and tbe plaintiff paid them; and the surety upon the debt to Mr. Goodall, had been sued, and suffered judgment. The debt to Shedd, was also left by the defendant unprovided for.

The defendant having, from tbe surplus of the mortgaged property, from the Allen and Deming notes, and from the sale of the equity of redemption, by means of an action and a judgment, instituted by an agreement of the parties for the express purpose, received into his hands money, which he agreed, when received, to apply to the payment of these debts, the question arises, upon his omission to pay them under the circumstances of this case, whether the plaintiff can recover the money in the present form of action.

On this head, it is a fixed principle of law that the merits [574]*574of a judgment can never be impeached by a counter action by the judgment debtor. The plaintiff cannot, therefore, in an action for money had and received, recover the money in question, upon the ground that the note, which was the foundation of that judgment, was wholly, or in part, without consideration, or that it was given for a consideration which failed.

But if one gives his note for a sum of money, the consideration of which is that the payee shall do a certain thing, the latter is surely not absolved, by bringing an action and recovering a judgment upon the note, from performing the act, the undertaking of which formed the consideration of the note. His refusal would lay the foundation of an action upon the contract.

If one, having received money in payment of his undertaking to perform an act, refuse to perform it, the other-party has the right to treat such refusal, or any degree of neglect that shall be equivalent to a refusal, as a rescission of the contract, and bring his action to recover back the price he has paid. This proposition is fairly involved in the decision of the case of Snow v. Prescott, 12 N. H. Rep. 535, which was an action to recover the price of chattels which had been delivered by the plaintiff to the defendant, and which the defendant had agreed to indorse on a note which he had held against the plaintiff, but which he did not indorse. It was held, in derogation of the earlier case of Tilton v. Gordon, that he might recover, notwithstanding the defendant had previously brought his action on the note, in which he recovered for the whole sum.

The defendant here promised the plaintiff to pay certain debts which the latter owed, and cannot deny that he was paid by the plaintiff for so doing. Instead of performing his promise, he has broken it. The plaintiff, instead of seeking redress in a special action on the case, on the promise, chooses to treat the contract as rescinded, and to recover back what he has paid.

[575]*575That the evidence amounts to showing a breach of the contract has been assumed. But, in the absence of any proof of the time when the defendant was to have paid the debts in question, and of the time when money sufficient to satisfy the judgment was received by him, which fact lay within his own knowledge, we will not surmise that such delay as the case shows, was, owing to any cause inconsistent with what has been assumed.

We, therefore, think the action well founded, as respects this item in the plaintiff’s claim.

3. The next inquiry relates to a receipt, signed by the plaintiff, which the defendant interposes against the action, so far as relates to the two items which have been considered, It purports to acknowledge payment for the property sold at auction, and the Allen and Deming notes, by an application of the amount on claims held by Hutchins & Buehannan and the defendant against the 'plaintiff. This receipt is contradicted, and its operation met by facts disclosed in the report, from which it appears that it was given at the suggestion of the defendant, for the purpose of concealing the funds he held, belonging to the plaintiff, from his creditors, lest they should be reached by a process of foreign attachment. And it is said that this explanation, by reason of the turpitude of the transaction, the plaintiff ought not to be permitted to offer; and that, therefore, the receipt must stand as uneontradicted evidenceof the fact stated upon its face.

If any innocent party had been misled by the receipt, and induced to give credit to any one by reason of it, there might indeed be some ground for denying to the plaintiff the privilege of showing that it was a sham, and an admission against the truth. But if any one has been so deceived, it is not he who now seeks to take advantage of the admission. It was made at his suggestion, for a purpose entirely foreign to the one for which he seeks to use it, and against what he perfectly well knew to be the truth at the time.

[576]*576Some facts are admitted, because they are believed to be true, and the admission is evidence of their truth, to be considered with other evidence.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Van Der Stok v. Van Voorhees
866 A.2d 972 (Supreme Court of New Hampshire, 2005)
King v. Hopkins
57 N.H. 334 (Supreme Court of New Hampshire, 1876)

Cite This Page — Counsel Stack

Bluebook (online)
28 N.H. 561, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-v-hutchins-nhsuperct-1854.