Laidley v. Smith

9 S.E. 209, 32 W. Va. 387, 1889 W. Va. LEXIS 86
CourtWest Virginia Supreme Court
DecidedMarch 12, 1889
StatusPublished
Cited by9 cases

This text of 9 S.E. 209 (Laidley v. Smith) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laidley v. Smith, 9 S.E. 209, 32 W. Va. 387, 1889 W. Va. LEXIS 86 (W. Va. 1889).

Opinion

ENglish, Judge.

This was an action of debt brought in the Circuit Court- of Kanawha county by Chárles C. Lewis, receiver of said Circuit Court, the declaration was filed on [388]*388the first Monday in November, 1885. The action was founded on a promissory note bearing date on -the 5th day of January, 1866, which note is in the words and figures following:

“$125.00. On domaud, we, or either of us, promise and bind ourselves to pay Levi J. Woodyard, receiver of the Circuit Court of Kanawha county, one hundred and twenty-five dollars borrowed money from the chancery cause of Kuffner & Long v. Donally and «fe., with interest from date until paid. Witness our hands this 5th day of January, in the year 1866,
[Signed] “ Isaac N. Smith,
“BbNjamiN II. Smith.
“Credit May 23, 1868, paid by B. II. Smith, fifty dollars.”

On the 22d day of January, 1886, the defendant demurred to the plaintiff’s declaration, and plaintiff joined ; and the court having considered said demurrer overruled the same, and thereupon the defendant pleaded nil debet and payment and tendered a special plea in writing, to wit, the statute of limitations, to which the' plaintiff objected, and the court took time to consider thereof, and on the 11th day of July, 1888, the defendant B. H. Smith having departed this life, and Charles C. Lewis having been appointed the executor of his last will and testament and having qualified as such, and George S. Laidley having been appointed as special receiver in the case of Ruffner and Long v. Donnally et als., in the place of said Charles C. Lewis, general receiver, to prosecute the suit at bar and 'to collect the fund in litigation in this cause, the suit was revived in the name of said George S. Laidley as such special receiver therein, and by consent the same was revived against said Charles C. Lewis as executor of said B. H. Smith, deceased, as defendant therein, and the objection to the plea of the statute of limitations tendered by B. Ii. Smith in his lifetime having been argued and considered by the court was overruled, and said plea wa,s ordered to be filed, and the plaintiff replied generally thereto, and the action was submitted to the court in lieu of a jury; and the court, having heard the evidence and arguments of counsel found the issues therein for the plaintiff and gave judgment for the plaintiff for the sum of $205.01 with inter[389]*389est thereon from the 11th. day of July, 1888, and costs, to which ruliug and judgment of the court the defendant tendered a bill of exceptions, which was signed, sealed and saved to him, which bill of exceptions shows, that upon the trial of said action the plaintiff to support the issue on his part gave in evidence said note, executed' as aforesaid by B. H. and I. N. Smith, also a decree of the Circuit Court of Kanawha county dated June 16,1865, made in the ease of Ruffner and Long v. Donally and others, directing the receiver to lend out said money on good security, also the order entered in said chancery cause on the 10th of April, 1884, directing C. C. Lewis, general receiver, to collect all the money due to the credit of said suit and, if necessary, to institute legal proceedings for that purpose, also an order of said court made June 2, 1877, appointing Charles C. Lewis general receiver in lieu of Levi J. Woodyard, deceased, showing liis qualification, and also directing the executor of said Woodyard to turn orer all moneys, bonds, and securities in his hands, both as general and special receiver, todlio new receiver, and directing said now receiver to do and perform such duties with regard to the funds and securities which may come into his hands as the said Woodyard was required by any decree or order of the court to do and perform, or such as ho was required by law to do and perform ; also another decree in said chancery suit of Ruffner and Long v. Donally et als., appointing G. S. Laidley special receiver and directing him to collect said funds and pay over the same to the parties entitled thereto, — which was all the evidence heard upon the trial of the cause for either party.

The note, on which this suit was predicated, bears date on the 5th day of January, 1866, and the declaration seems to have been filed on the first Monday in November, 1885. The writ is not made part of the record, but it is presumed, it bore date more than ninety days before the filing of the declaration. The suit then was instituted nearly twenty years after the note was executed. The plea of the statute of limitations was interposed ; and one of the questions, perhaps the most important question, in the case is, whether said plea should have been sustained by the court. Under the statute, which was in force at the time of the execution o [390]*390said note, every action to recover money, which was founded on any contract in writing signed by the party to be charged thereby or by his agent, but not under seal, should be brought within five years next after the right to bring the same shall have first accrued. When did the right of action accrue in this case ? The note was made payable “on demand,” and it is contended, that the words “on demand” are not employed as a matter of course or idle form, but they were employed to carry out the order of the court as to the disposition of the fund, the money being money in the hands of the receiver, which he was directed to loan out; and it appears from the decree directing said loan, that the receiver was directed to loan out said money on good security to be subject to the order of the court. This would make the loan a loan on call, if the parties executing said nóte had full notice of said order, which the court would presume they had. The contract for said loan was made with the receiver, who was merely the agent of the court and acting for the court in lending the money.

When did the court have a right to institute suit upon said note? After it had been executed and delivered to the receiver, it was under the control of the court in the hands of its agent. Parsons in his work on Mercantile Law discussing the question, when the statute of limitations begins to run, says on page 248 : “And the general rule is, that it begins when the action might have been commenced, “referring to Odlin v. Greenleaf, 3 N. H. 270, where it is held : “An action of assumpsit is barred by the statute of limitations only in cases where the time limited in the statute has elapsed after the right of action accrued.” Parsons further says : “If a credit is given, this period does not begin until the credit has expired; if a note on time be given, not until the time has expired, including the additional three days'of grace; if a hill of exchange be given payable at sight, then the six years begin .after presentment and demand ; hut if a note he payable on demand, or money is payable on demand, then the limitation begins at once.” See Stafford v. Richardson, 15 Wend. 302; Hickok v. Hickok, 13 Barb. 632.

This note being payable on demand, it was optional with [391]*391the court when it through its agent, the receiver, should institute suit to collect the same.

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Cite This Page — Counsel Stack

Bluebook (online)
9 S.E. 209, 32 W. Va. 387, 1889 W. Va. LEXIS 86, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laidley-v-smith-wva-1889.