M-A-C Loan Plan, Inc. v. Schabel

265 A.2d 620, 6 Conn. Cir. Ct. 78, 1969 Conn. Cir. LEXIS 153
CourtConnecticut Appellate Court
DecidedOctober 3, 1969
DocketFile No. CV 6-6612-27947
StatusPublished

This text of 265 A.2d 620 (M-A-C Loan Plan, Inc. v. Schabel) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M-A-C Loan Plan, Inc. v. Schabel, 265 A.2d 620, 6 Conn. Cir. Ct. 78, 1969 Conn. Cir. LEXIS 153 (Colo. Ct. App. 1969).

Opinion

Kosicki, J.

This is an action for the balance due on a promissory note dated November 28,1955. The writ, summons and complaint were dated November 23, 1966, and process was served November 25,1966. The complaint was filed November 29, 1966.

The defendants filed a general denial and interposed a special defense claiming that the six-year Statute of Limitations under General Statutes § 52-576, as amended in 1959, was applicable. To this special defense the plaintiff demurred, asserting that the seventeen-year statute applied, since that was the law in effect at the time the note was executed and it was a nonnegotiable instrument, and that, in any event, it was an instrument under seal and thus the longer period of limitation was applicable.

On October 27, 1967, the trial court sustained the plaintiff’s demurrer, holding that (1) the Statute of Limitations as of the date the note was executed was applicable, and (2) the note was a contract under seal. In either case, the court determined, the seventeen-year statute applied and the special defense was unavailing. On June 18, 1968, the plaintiff moved for a disclosure of defense, pursuant to Practice Book § 176. The defendants then disclosed [80]*80the same defense, namely, the Statute of Limitations, as had already appeared in the answer filed. On January 14, 1969, the plaintiff moved for judgment in accordance with § 176 of the Practice Book, and the motion was granted on February 17. After a hearing in damages, judgment was rendered for the plaintiff on May 19, 1969. The defendants have appealed, assigning as error the court’s action (1) in sustaining the demurrer to the special defense; (2) in granting the motion for a disclosure of defense after an answer and special defense had been filed and issues were joined; and (3) in granting judgment for the plaintiff for failure to disclose a defense where a defense had been disclosed. No finding was requested or made.

We shall consider first the last two claims of error as they appear above. The defendants were not required to plead over after a demurrer to the special defense was sustained. They had the right to stand on that decision and have it tested on appeal. “If they voluntarily . . . [filed] a substituted answer eliminating the special defense which was successfully demurred to, they would waive their right to question the ruling on the demurrer. Eames v. Mayo, 93 Conn. 479, 489; Antman v. Connecticut Light & Power Co., 117 Conn. 230, 234.” Harris v. Griffing, 20 Conn. Sup. 16, 17. A more orderly procedure would have prompted the filing of a motion for default for failure of the defendants to plead over; Harris v. Griffing, supra; or a motion by the defendants that judgment be rendered in order that an appeal might be taken from the sustaining of the demurrer. Grady v. Kennedy, 145 Conn. 579, 583. Otherwise, the sustaining of the demurrer would have removed the special defense from the case. Practice Book § 112; see State v. Sul, 146 Conn. 78, 83; Maltbie, Conn. App. Proc. § 48.

[81]*81The parties and the court have proceeded with the appeal on the main issue — whether the ruling on the demurrer was correct. Since no finding was filed, we refer to the memorandum of decision to determine the reasons on which the court based its conclusions of law.

The first conclusion arrived at was that the Statute of Limitations in effect at the time the note was executed was applicable even though the period of limitation had been reduced before the action on the note was commenced. The note in question is dated November 28, 1955. Action was commenced by writ served on November 25, 1966. At the time the note was executed, § 8313 of the Revision of 1949 was in effect. This statute provided that no action shall be brought “on any contract under seal, or promissory note not negotiable, but within seventeen years next after an action on the same shall accrue.” In the Revision of 1958, this statute, without change, became § 52-573 of the General Statutes, and subsequently, by Public Acts 1959, No. 574 § 7, it was amended by eliminating the words “or promissory note not negotiable.” Thus, the Statute of Limitations on nonnegotiable promissory notes was reduced from seventeen to six years effective October 1,1961. The court ruled that § 52-573, before amendment, was applicable. As authority, Brown v. Wilcox, 73 Conn. 100, 103, is cited. In that case the action was against the indorser of a nonnegotiable note, and it was held that a written indorsement to the effect that the indorser guaranteed payment of the note until paid, and agreed to be liable and to pay as if he had signed the note as maker, might be construed as an absolute guarantee and as such was admissible in evidence. When the court said that “[t]he rights and duties of the parties in this case are to be determined by the law relating to the in-[82]*82dorsement of non-negotiable notes which prevailed when the indorsement in question was made, and not by that law, as it now is,” the court had reference to the substantive law applicable to the situation and not to limitations which a statute may impose on the remedy.

The trial court in the present case correctly held that the note sued on was nonnegotiable. It did not contain the words of negotiability required by our law. It is not payable to any person or his order, or to the bearer. Mackey v. Dobrucki, 116 Conn. 666, 669; Curtiss v. Hasen, 56 Conn. 146, 149; Backus v. Danforth, 10 Conn. 297, 303. The conclusion that the Statute of Limitations in effect at the time suit was brought was not applicable was, however, erroneous. The decisions of our Supreme Court for over a century have made it clear that in cases like the one before us the Statute of Limitations at the time the action was commenced is controlling. Such statutes are a matter of procedure rather than of substantive right. Medbury v. Hopkins, 3 Conn. 472, 473. “Statutes of limitation are no part of a contract; they concern only the form and time of the remedy for a breach thereof.” Waterman v. Sprague Mfg. Co., 55 Conn. 554, 576. In actions at law, the Statute of Limitations in force at the time the claim was filed applies. Bohun v. Kinasz, 124 Conn. 543, 547. In Kennedy v. Johns-Manville Sales Corporation, 135 Conn. 176, the incident from which the cause of action arose took place in 1935. Suit was not brought until 1946. In two counts, it alleged negligence and breach of contract. Meanwhile, a limitation of one year was enacted for negligence actions. A demurrer to the complaint was sustained, the court holding that the one-year Statute of Limitations in negligence and the six-year statute in contracts barred the causes of action. See such cases as Hazlitt v. Fawcett Publications, Inc., 116 [83]*83F. Sup. 538, 540 (D. Conn.); Crampton v. D. V. Frione Co., 1 F. Sup. 989 (D. Conn.).

The conclusion of the court that the seventeen-year statute, General Statutes § 52-573, before its amendment in 1959 removing nonnegotiable promissory notes from its scope, applied was erroneous, as was the sustaining of the plaintiff’s demurrer on that ground.

The last question is whether the demurrer was sustainable under the provision of § 52-573 which limits a suit on a contract under seal to seventeen years after an action on it had accrued.

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Related

Security National Bank of Greensboro v. Educators Mutual Life Insurance
143 S.E.2d 270 (Supreme Court of North Carolina, 1965)
State v. Sul
147 A.2d 686 (Supreme Court of Connecticut, 1958)
Grady v. Kennedy
145 A.2d 124 (Supreme Court of Connecticut, 1958)
Beach v. Beach
107 A.2d 629 (Supreme Court of Connecticut, 1954)
Caputo v. Diloretto
148 A. 367 (Supreme Court of Connecticut, 1930)
Brown v. Wilcox
46 A. 827 (Supreme Court of Connecticut, 1900)
Eames v. Mayo
106 A. 825 (Supreme Court of Connecticut, 1919)
Antman v. Connecticut Light & Power Co.
167 A. 715 (Supreme Court of Connecticut, 1933)
Bohun v. Kinasz
200 A. 1015 (Supreme Court of Connecticut, 1938)
Kennedy v. Johns-Manville Sales Corporation
62 A.2d 771 (Supreme Court of Connecticut, 1948)
MacKey v. Dobrucki
166 A. 393 (Supreme Court of Connecticut, 1933)
Harris v. Griffing
119 A.2d 745 (Connecticut Superior Court, 1955)
Medbury v. Hopkins
3 Conn. 472 (Supreme Court of Connecticut, 1820)
Backus v. Danforth
10 Conn. 297 (Supreme Court of Connecticut, 1834)
Waterman v. A. & W. Sprague Manufacturing Co.
12 A. 240 (Supreme Court of Connecticut, 1888)
Curtiss v. Hazen
14 A. 771 (Supreme Court of Connecticut, 1887)

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Bluebook (online)
265 A.2d 620, 6 Conn. Cir. Ct. 78, 1969 Conn. Cir. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-a-c-loan-plan-inc-v-schabel-connappct-1969.