Mayberry v. Willoughby

5 Neb. 368
CourtNebraska Supreme Court
DecidedJanuary 15, 1877
StatusPublished
Cited by19 cases

This text of 5 Neb. 368 (Mayberry v. Willoughby) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mayberry v. Willoughby, 5 Neb. 368 (Neb. 1877).

Opinion

Gantt, J.

In the court below, service of summons was had on C. N. Mayberry only; he pleaded the statute of limitations, and he now brings the case into this court as plaintiff in error.

It appears from the facts admitted, that the plaintiff in error and J. C. Mayberry were, formerly, partners, doing business in the state of Illinois, under the firm name of J. 0. & C. N. Mayberry; that on the 14th day of January, 1864, the note, on which this action was brought, was executed by the firm and delivered to the defendant in error; that on the 29th day of March, 1864, the partnership was wholly dissolved, and that on or about the 15th day of July, 1868, the defendant in error [370]*370had notice of the dissolution of the partnership; that in March, 1869, the plaintiff in error moved to the state of Nebraska, and has ever since resided there. J. 0. May-berry made partial payments on the note, on the 16th day of November, 1864, on the fii;st day of June, 1868, on the 25th day of July, 1870, and on the 29th day of November, 1871; and of these payments the plaintiff in error had no knowledge whatever, until after the commencement of the suit, on the 18th day of April, 1876.

The only question raised in the case is: Do these payments made by J. C. Mayberry take the debt out of the statute of limitations as to the plaintiff in error?

It is said that the statute is a wise and beneficial law, and should not be viewed in an unfavorable light; and it is now generally conceded, that it is not to be construed as merely raising a presumption of payment, but that in its operation it is intended to be emphatically a statute of repose.

Therefore, in order to take a debt out of it, there must be an unqualified acknowledgment, not only of the debt as originally due, but that it continues so; or, if the promise to pay is conditional, the condition must be performed before an action can be maintained on the promise; and the acknowledgment or promise must be made by the person to be charged, or by some person legally authorized by him to do so.

Again, as the law strictly affects the remedy, and not the merits, it seems well' settled, that upon the plea of the statute, the lex fori must prevail. McElmoyle v. Cohen, 13 Peters, 327. Townsend v. Jemison, 9 How., 413. Bell v. Morrison, 1 Peters, 618.

Hence, the law must be regarded as designed to protect persons from ancient claims, whether well or ill founded; and its-tendency is to produce speedy settlements, and if such settlements are not made within the time limited by the law, its effects are such as to, extin[371]*371gnisli the legal liability upon the debt, unless it be revived by a new promise; and, therefore, if the creditor by his own fault and laches, permits the statute to attach, whatever may be the nature or character of his claim, he cannot complain of the operation of the law, since it is by his own negligence that it can be brought to bear against him.

But, as J. C. and C. N. Mayberry were partners at the time the debt was contracted, it is contended that, notwithstanding the dissolution of the partnership with notice thereof to the creditor, and notwithstanding the time limited by the statute within which actions can be commenced after the cause of action shall have accrued, had long expired, as to the plaintiff, yet the payments made by J. C. Mayberry, as above stated, and without the knowledge or assent of the plaintiff, constitute an admission by both, and in law raises a promise by both to pay the claim; and this proposition is urged upon the ground, that, as J. C. Mayberry had authority to discharge the debt or make payments thereon, he necessarily had authority, upon the theory that a virtual agency existed in each co-contractor, by his individual promise to charge the other with the payment of the debt. This is true as to partners, for, it is a familiar and well established doctrine, that during the existence of the partnership, the act of one partner within the legitimate scope of the partnership business, will bind the other partners; and this doctrine, no doubt, had its origin in the fact, that in a partnership, constituted by voluntary contract, with the understanding that there shall be a communion of profits between them, there must necessarily be in each partner a community of interest with the others in the whole property, business and responsibilities, of the concern; and, thei’efore, each partner is prmjgositus ncgotiis societatisj and in the diverse and multiplied transactions of the business, each must,mr£wzte officii, become the agent [372]*372of the others, when acting within the scope and objects of the partnership. But, upon the dissolution of the partnership, this agenc3r, as well as the relation of partners, ceases to exist, and the authority to create new contracts is revoked; and the rights of the partners thereafter can only extend to the settlement of the partnership concerns, and the disbursement of the remaining funds. It is said that, “ after dissolution, no valid draft, acceptance or indorsation can be made by the firm; and it is no authority to do so, if any partner is in the notice empowered to receive and pay the debts of the compan37. The indorsation, draft or acceptance must be done by all of the partners, or by one specially empowered to do the act for them.” 2 Bell’s Com., 6M. Story on Part., Sec. 332. 1 Smith Lead. Cases, 730. No new contract can be created in the name of the firm, and no one of the partners can create such contract so as to charge the others, unless they specially authorize him to do so for them.

Now, the doctrine seems well settled by authority, that an acknowledgment is to be considered, not as a continuation of the old promise, but as the evidence of a new promise; and, therefore, it is alone this new promise which takes the debt out of the statute. This new promise is a new contract, nothing more, nothing less; and it is a contract to pay a pre-existing debt, which of itself does not bind the party, because by force of the law it was extinguished. Hence, is not the acknowledgment, in essence and in law, the creation of a new contract, which gives the creditor a new cause of action, and not simply the enforcement of the old one? It, therefore, seems clear, both upon principle and authority, that after the relation of partners has ceased to exist, one of the partners cannot, upon the ground of mutual agency, bind the others by such contract. The relation of the partners to their creditors, then, becomes [373]*373that of joint debtors. Bell v. Morrison, supra. Hacklie v. Patrick, 3 Johns., 537. Green v. Crane, 2 Lord Raym., 1101. Thompson v. Peters, 12 Wheat., 565. Tompkins v. Brown, 1 Denio, 247. Dean v. Hewit, 5 Wend., 257. Dunham v. Dodge, 10 Barb., 569.

It is, however, urged, that the acknowledgment relied on in the case at bar, consists of partial payments made on the original debt of J. 0. Mayberry, and as some of these payments were made before the time limited by the statute had expired, the statute of limitations did not attach as to the plaintiff in error; but it is said “ that although a part payment of a debt admits its existence as a subsisting obligation, and will, therefore, be sufficient to take it out of the statute, yet that it has no greater effect than any other unqualified acknowledgment, and must consequently be connected by sufficient evidence, both with the parties to the suit, and the claim sought to be enforced.” 1 Smith’s Lead. Cases, 726.

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Bluebook (online)
5 Neb. 368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mayberry-v-willoughby-neb-1877.