Kingan & Co. v. Silvers

37 N.E. 413, 13 Ind. App. 80, 1894 Ind. App. LEXIS 338
CourtIndiana Court of Appeals
DecidedMay 9, 1894
DocketNo. 1,088
StatusPublished
Cited by21 cases

This text of 37 N.E. 413 (Kingan & Co. v. Silvers) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kingan & Co. v. Silvers, 37 N.E. 413, 13 Ind. App. 80, 1894 Ind. App. LEXIS 338 (Ind. Ct. App. 1894).

Opinion

Lotz, J.

The appellant was the plaintiff and the appellees the defendants in the court below. The complaint is in one paragraph, and alleges that on September 25, 1888, the defendants, at Lebanon, Indiana, executed to the plaintiff the following note:

[82]*82“$388.03. Lebanon, Ind., Sept. 25, 1888.
“Ninety clays after date, we promise to pay to the order of Kingan & Co., at the Meridian National Bank of Indianapolis, Ind.,' three hundred and eighty-eight and 03-100 dollars, with eight per cent, interest after maturity until paid, and five (5) per cent, attorney’s fees. Value received, without any relief from valuation or appraisement laws. And it is hereby understood that the drawers and endorsers severally waive presentment for payment, of protest and non-payment of this note.
“W. P. Silver,
“Due 24th Dec., 1888. “James Silver..”

The complaint further alleges that the note was procured from defendants by the plaintiff’s traveling salesman, one W. H. Nichols; that said salesman was not a general agent, and had no general authority to make settlements or take notes on plaintiff’s account, nor was that a part of his duties; that, being about to go to Lebanon, in the course of his duties as such traveling salesman, the plaintiff instructed him to procure for plaintiff from defendants a note on account of an indebtedness to plaintiff amounting to $388.03 ; that this agent accordingly procured the note sued upon; that after the execution of the note, the agent took it to another part of Lebanon, entirely away from and out of communication with defendants, or either of them, and there, while he was in the process of conveying the note to plaintiff, and without the authority or knowledge or consent of the plaintiff or of the defendants, or either of them he altered the note by striking out the words “after maturity,” and inserting the words “from date,” so as to make the note read, ‘ ‘ with eight (8) per cent, interest from date; ” that the agent then transmitted the note to plaintiff, but did not inform plaintiff of the alteration, nor'did plaintiff have any knowledge of it [83]*83■until after the note became due and was sent to Lebanon for collection; that the plaintiff has never in any way ratified or approved the agent’s act in changing said note, but since learning of the same has only demanded and now only demands payment of the note as originally executed; that the agent believed that he had the right to make the alteration; that the note was written on a printed blank, and that, in commerce, it is the constant practice, if the instrument is to bear interest from date, to make a change exactly similar to this change, and that there was nothing in the appearance of the note to put plaintiff upon inquiry.

The defendants separately demurred to the complaint for want of sufficient facts. The demurrers were sustained, to which ruling the plaintiff excepted, and electing to abide by its complaint final judgment on demurrer was rendered for the defendants.

The errors assigned are the rulings of the court in sustaining the separate demurrers to the complaint.

According to the allegations of the complaint, the note as originally executed, provided for “eight per cent, interest after maturity until paid.” It was altered or changed by striking out the words “after maturity” and the words “from date” inserted, so as to make it read “with eight per cent, interest from date.” This was a material alteration and so changed the terms of the note as to increase the obligations of the makers. A contract is an agreement and promise enforceable by law. In every express contract the minds of the contracting parties must come to and consent to the same stipulations and conditions. Such a contract rests primarily in mental processes, which are invisible and intangible. The parties may, at their option, put the terms of the contract in writing, and cause the same to be signed by the persons to be charged thereby. The [84]*84writing then becomes the deed or act of the parties who sign the same. Owing to the fixed methods of procedure in courts of justice and the illiberal rales of evidence that formally existed, the importance of preserving written instruments in their original integrity, was much greater than in more recent times.

Custom required that the acts which marked the completion of certain kinds of contracts should be attended, with great solemnity and formality. The purpose was to preserve and perpetuate the evidence of the contract. In the execution of certain written instruments the formal requirements become of as much importance as the contract itself. Holmes Com. L. 261. A written instrument in the hands of an adverse party is easily susceptible of alteration, to the injury of the maker. Many written contracts are negotiable and perform important functions in commercial transactions. It is of the. highest importance to the commercial world, that they be preserved in their original state or condition. Public policy demands this for the prevention of frauds, and of loss to innocent persons. The most effectual means of preserving the integrity of such instruments is the rule that a material alteration destroys the instrument so that no recovery can be had upon it, either in its original or altered condition; and the rale that no recovery can be had upon the original consideration, if the change be made for a fraudulent purpose. The object of these rules is to enjoin the highest care upon the holder and to punish him with loss for his negligent or fraudulent conduct.

One of the early decisions of the English courts on the subject of the alteration of written instruments is that of Pigot’s case, decided by Sir Edward Coke, in the year 1614. Coke’s Rep., vol. 6, part. XI., p. 27.

[85]*85It was then, resolved, ‘ ‘ That when any deed is altered in a point material, by the plaintiff himself, or by any stranger, without the privity of the obligee, be it by interlineation, addition, erasing, or by drawing of a pen. through a line, or through the midst of any material word, that the deed thereby becomes void. * * * * So if the obligee himself alters the deed by any of the said ways, although it is in words not material, yet the deed is void: but if a stranger, without his privity, alters the deed by any of the said ways in any point not material, it shall not avoid the deed.”

Since the time of Pigot’s case we find in the books a multitude of adjudications bearing upon the subject of the alteration of notes and other written instruments. They are- not all consistent nor easily reconciled. But after all that has been said, -each case must stand much more on its own facts than upon the rules announced in any given case.

The rules announced in Pigot’s case have been modified in England; and they never did prevail in America to their full extent or in their original vigor. The rules that now prevail as we gather them from the decidéd cases are, (1) that the alteration of a note or written instrument in a material matter by a stranger, is but a spoliation and does not destroy it, and a recovery'may be had on it in its original condition. (2) If the plaintiff, the obligee or the holder, make an alteration in an immaterial matter, the alteration does not destroy the note, but a recovery lüuy be had on it in its original condition.

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Bluebook (online)
37 N.E. 413, 13 Ind. App. 80, 1894 Ind. App. LEXIS 338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kingan-co-v-silvers-indctapp-1894.