Larned v. City of Dubuque

53 N.W. 105, 86 Iowa 166
CourtSupreme Court of Iowa
DecidedOctober 7, 1892
StatusPublished
Cited by14 cases

This text of 53 N.W. 105 (Larned v. City of Dubuque) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larned v. City of Dubuque, 53 N.W. 105, 86 Iowa 166 (iowa 1892).

Opinion

Kinne, J.

1. Judgment: assignment: fraud: evidence. I. It is claimed by the plaintiff that the assignment of the judgment obtained by Sara Lee Porter against the defendant city was procured by fraud. We think the plaintiff has wholly failed to establish this claim. The substance of the testimony relating to this question is that, when the compromise of the judgment of Sara Lee Porter against the city was effected, which also included the dismissal of her suit against the mayor and aldermen, the interyen or was not consulted; that Mrs. Porter’s presence in Dubuque was purposely kept from his knowledge; and that the fact that twelve thousand dollars had bee.n taken from the city treasury and deposited in a bank for the protection of the mayor and aldermen, who refused to levy the tax, was not disclosed to Sarah Lee Porter. The evidence does not disclose what, if any, representations were made by the officials of the city to Mrs. Porter. These officials were under no obligations to notify the intervenor of Mrs. Porter’s presence in the city, or of the contemplated compromise, and especially was this so when, as it appears, she was represented at the settlement by one Roberts, an attorney, who represented Wiltse, the attorney whom she originally employed in the case. Sara Lee Porter had the right, regardless of the inter[174]*174venor,'to compromise her judgment, as well as the litigation growing out of its attempted enforcement. Her liability, if any, under her contract with Wiltse and Poor, for attorneys’ fees, in no way prevented a compromise of her claims, so far as the defendant city was ■concerned. At one time before this, when both Sara Lee Porter and the intervenor were present, an attempt was made to compromise, but the intervenor advised his client against it. Counsel who represented her at the time the compromise was effected also drew the assignment, which she executed.

Much stress is laid upon the fact that the officers •of the defendant city kept from Mrs. Porter’s knowledge the fact that the city had set apart twelve thous- and dollars to indemnify the mayor and aldermen for refusing to levy a tax to pay her judgment. In the exercise of good faith they were not bound to disclose this fact to her. This money was not set apart to pay her judgment. She had no right whatever to it. It may be' that the council acted illegally in thus taking the money from the city treasury for the purpose of indemnifying its officers and members for refusing to perform a legal duty, if such it' was, but this question we do not determine. For aught that appears, Mrs. Porter knew the facts relating to this twelve thousand dollars, but, in our view, it is immaterial whether she •did or not. She was no nearer securing the money on her judgment by legal means, by reason of the fact that the city council had set this money apart for a purpose •other than to pay her judgment.

2. -: -: compromise: validity. II. It is contended that the settlement or compromise was not based upon any consideration. It appears that in March, 1866, Sara Lee Porter recovered a judgment for eight thousand three hundred and eighty-nine dollars and twenty-five cents and costs against the city. In the same action she sought to establish a vendor’s lien [175]*175on certain real estate of the city, hut failed. She appealed from the decision of the lower court, and was again defeated as to her lien. Porter v. City of Dubuque, 20 Iowa, 444. In June, 1866, she caused execution to issue on her judgment, and it was returned unsatisfied. In July, 1866, she petitioned the city council to levy a special tax to pay her judgment, hut it failed and refused so to do.._ She then sued the mayor and aldermen, claiming that they were personally liable for refusing to levy thé tax. Upon the trial a verdict was found in her favor, which the court set aside. From this ruling she appealed to this court, and the action of the lower court was again sustained. Porter v. Thomson, 22 Iowa, 391. While the case was pending in the district court for retrial, the council took the action setting apart the twelve thousand dollars for the purpose above referred to. Mrs. Porter then came to Dubuque. The city was then indebted to an amount exceeding eight hundred thousand dollars. It was virtually bankrupt. Its bonds were being sold at from fifteen.to forty cents on the dollar. It may well be presumed, in the absence of testimony, that she was cognizant of the financial condition of the city, and the value of its securities. Under these circumstances it must be conceded that the inducement to Mrs. Porter to effect what, at least, appeared to be an advantageous compromise of her judgment, and the litigation connected therewith, was very great. It is said that no accord and satisfaction is pleaded by the city, or, if sufficiently pleaded, that it is not established. In our view, it is not a question, strictly speaking, of accord and satisfaction, but the settlement of pending litigation, as well as the compromise of her judgment.

But it is contended that the law is that an agreement, even if executed, to accept a less amount than that actually due, in satisfaction of a judgment, is without consideration and void. No doubt the great [176]*176weight of authority sustains this contention, though there are cases wherein the correctness of this rule is at least doubted. Harper v. Graham, 20 Ohio, 118; Reid v. Hibbard, 6 Wis. 192; Freeman on Judgments [3 Ed.], sec. 463. And it is quite certain that the tendency of courts is towards holding that such an agreement, fully' executed, is valid as a discharge of the entire judgment.

The general rule, that a payment of part of a claim would not operate as a satisfaction of the whole, has been held not to apply in many cases, among which are the following: Where, in addition to. part payment, there is an additional consideration, as an article of value. Neal v. Handley, 116 Ill. 418. Where the doing or procuring of an act is a burden or inconvenience to the defendant, and a possible benefit to the plaintiff. Booth v. Campbell, 15 Md. 569. Or if a part be paid before all is due. Pinnel's case, 5 Coke, 117; Brooks v. White, 2 Metc. (Mass.) 283; Boyd v. Moats, 75 Iowa, 151. Or if payment of part be made in a way more beneficial to the creditor than that prescribed in the contract. Sibree v. Tripp, 15 Mees. & W. 23. Or payment of part at a more convenient place than that provided in the contract. Smith v. Brown, 3 Hawks, 580. Or if the debtor render certain services by consent of the creditor in full payment of a debt. Blinn v. Chester, 5 Day, 359. Or assign certain property. Eaton v. Lincoln, 13 Mass. 424. Or if he pay costs and expenses of an action brought to recover a liquidated debt, in addition to a part of the debt. Mitchell v. Wheaton, 46 Conn. 315.

“This rule, which may obviously be urged in violation of good faith, is not to be extended beyond its precise import; and, whenever the technical reason for its application does not exist, the rule itself is not to be applied. Hence judges have been disposed to take out of its application all those cases where there was [177]*177any new consideration or any collateral benefit received by the payee which might raise a technical legal consideration, although it was quite apparent that such consideration was far less than the amount of the sum due.” Brooks v. White, 2 Metc. (Mass.) 285.

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Bluebook (online)
53 N.W. 105, 86 Iowa 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larned-v-city-of-dubuque-iowa-1892.