LaSalle Extension University v. Barr

20 A.2d 609, 19 N.J. Misc. 387, 1941 N.J. Misc. LEXIS 58
CourtUnited States District Court
DecidedMay 22, 1941
StatusPublished
Cited by25 cases

This text of 20 A.2d 609 (LaSalle Extension University v. Barr) is published on Counsel Stack Legal Research, covering United States District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LaSalle Extension University v. Barr, 20 A.2d 609, 19 N.J. Misc. 387, 1941 N.J. Misc. LEXIS 58 (usdistct 1941).

Opinion

Rosenstein, J.

This action is upon a judgment rendered more than twenty years before the commencement of this action, but upon which judgment payments were made, the last being less than twenty years before such commencement. The solo question involved, therefore, is whether partial payment of a judgment operates to toll the statute of limitations. This question has not been decided in this state, and other jurisdictions, that have passed upon it, are divided.

Payment on a judgment debt suspends the running of the statute of limitations in Arkansas, Kentucky and New York. Lindsay v. Merrill, 36 Ark. 545; Koontz v. LaDow, 133 Id. 523; 202 S. W. Rep. 686; White v. Moore, 100 Ky. 358; 38 S. W. Rep. 505; In re Murray’s Estate (Court of Appeals, N. Y., 1936), 5 N. E. Rep. (2d) 717.

On the other hand, partial payment of a judgment does not suspend the running of the statute in Minnesota, North Carolina, or Ehode Island. Olson v. Dahl, 99 Minn. 433; 8 [388]*388L. R. A. (N. S.) 444; 109 N. W. Rep. 1001; Hughes v. Boone, 114 N. C. 54; 19 S. E. Rep. 63; McDonald v. Dickson, 87 N. C. 404; McCaskill v. McKinnon, 121 N. C. 192; 28 S. E. Rep. 265; Garabedian v. Avedisian, 42 R. I. 78; 105 Atl. Rep. 516.

The conflict in the decisions as to whether the running of the statute of limitations is suspended in the case of judgments by payments on account thereof is due to the difference of opinion as to whether a judgment is a contract within the rule that payment on account of a contract tolls the statute. The better reasoned cases seem to be those holding that a judgment is not such a contract.

In Morley v. Lake Shore and Michigan Southern Railroad Co., 146 U. S. 162; 13 Sup. Ct. 54; 36 L. Ed. 925, the Supreme Court of the United States held that a judgment is not a contract within the meaning of the constitutional provision invoked by the appellant and pointed out that the most important elements of a contract are wanting. Far from having any meeting of the minds, the judgment is entered in invitum.

In Garabedian v. Avedisian, supra, the Supreme Court of Rhode Island held that a judgment is not a contract and that it could not be revived by a partial pajunent.

In Olson v. Dahl, supra, the court said: “It is not at all difficult to demonstrate theoretically at least, that a judgment is a contract. Blackstone makes the statement in his Commentaries that it is, and some of the authorities, following in line with his theory, have classed it with specialties. 3 Bl. Com. 160; Sawyer v. Vilas (1845), 19 Vt. 43. But a practical consideration of the question in the light of the essentials to the existence of valid contract relations leads to the contrary conclusion. In fact, the weight of authority, both in England and this country is to the effect that a judgment is not a contract in any proper sense of the term.”

Even New York, which holds that a payment on account of a judgment will, suspend the running of the statute of limitations, concedes that a judgment is not a contract. Jennings v. Loucks et al., 297 N. Y. Supp. 893.

It is well, therefore, to look into the history of the doctrine [389]*389that partial payments suspend the running of the statute of limitations, in order to determine whether such payments suspend the operation of the statute in connection with payments on account of a judgment debt. This history is well set out in Olson v. Dahl, supra:

“Chapter 16 of the Acts of Parliament of the twenty-first year of James I is the foundation of all statutes of limitations, both in England and this country. That act contained no exceptions preventing the operation of the statutes in cases where a new promise or acknowledgment of indebtedness, or part payment, was made by the debtor. The limitations of time within which actions were required to be brought were absolute. On the theory that the statute created simply a presumption of payment, or served only to extinguish the remedy of the creditor, the courts of England judicially ingrafted thereon an exception, to the effect that a new promise or part payment of the debt revived the cause of action and set the statute running anew. This interpretation of the law led to Lord Tenterden’s Act (9 Geo. IV, ch. 14), by which it was enacted that no new promise should be sufficient to take the case out of the operation of the statute, unless in writing signed by the party to be charged; further providing that the effect of part payment, which the courts had held-operated to revive, should not be changed by that enactment. The purpose of that act was to put a limitation upon the rule ingrafted upon the original statute by the courts, by requiring the new promise, which the courts held sufficient to toll the statute, to be in writing. The act did not create the rule, but simply recognized its existence and limited or restricted its application or operation. Thus the law came to this country, and a statute similar to Lord Tenterden’s Act is found upon the statute books of nearly all, if not all, of our states. Section 4086, Rev. Laws, 1905, was taken from that act. The new promise or part payment has never, however, been applied to actions in tort, or those founded upon specialties. The rule has been confined to contracts, express or implied, for the payment of money. Where actions in tort or upon specialties are required to be brought within a specified time, no part payment or promise to pay will operate to suspend the opera[390]*390tion of the statute, or remove the bar when it has once attached. Wood, Limitations (3d ed.) § 66. The theory of .the courts in this respect is that, as to such obligations, the action is not, and cannot be, founded upon promise, either express or implied, but must, in the nature of things, be either in debt or covenant; therefore a new promise or part payment will not continue the right of action.”

See, also, Parker v. Butterworth, 46 N. J. L. 244.

A careful reading of the New Jersey statute dealing with limitations of actions, Title 2, chapter 24, Rev. Stat. of N. J., 1937, will disclose that the legislation in this state bears the imprint of the historical process outlined in Olson v. Dahl, supra. Thus, Title 2:24-1 to 3 and 5 and 6 deal with the several periods of limitations applicable to the respective ■cases therein enumerated. With the exception of one of the provisions mentioned in Title 2:24-5, which will be hereafter more particularly dealt with, these several sections deal only with the limitations of time within which actions are required to be brought and are absolute in their terms. The matter of new promise or payment is dealt with in Title 2:24-9, which does not purport to make exceptions to the statute, but to recognize the exceptions that had been ingrafted upon the ■statute by the courts.

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Bluebook (online)
20 A.2d 609, 19 N.J. Misc. 387, 1941 N.J. Misc. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lasalle-extension-university-v-barr-usdistct-1941.