McClure v. Smeltzer

269 N.W. 888, 222 Iowa 732
CourtSupreme Court of Iowa
DecidedNovember 24, 1936
DocketNo. 43675.
StatusPublished
Cited by9 cases

This text of 269 N.W. 888 (McClure v. Smeltzer) 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
McClure v. Smeltzer, 269 N.W. 888, 222 Iowa 732 (iowa 1936).

Opinion

Kintzinger, J.

This action was commenced on September 13, 1935. The petition as amended alleges that on July 22,1923, the defendants made, executed and delivered to Sam McClure, now deceased, their certain promissory note in the sum of $2,000, payable one year after date. The note bears several endorsements of payment on interest and principal, the last showing a pay *733 ment of $450 on principal, leaving a balance of $1,100 and interest.

To avoid the bar of the statute of limitations, the petition also alleges that on July 6, 1935, the defendant Smeltzer sent the said Sam McClure a written letter in reference to the note in question, in which he said:

‘ ‘ In our conversation * * ‘x‘ the other day you agreed to turn over the note signed by Rhodes, Coughlan and myself for $500. I think it would be well for you to endorse this note over to me without recourse. In this way I might be able to realize a little something on the note. * * *
“I will leave the $500 at the State Bank with instructions to turn same over to you on surrender of the note. * * * I am going to be out of town for several days, and as I promised to get you this money within a week, this plan will enable me to keep my promise.
‘ ‘ Thanks for your leniency in this matter and assuring you that I appreciate everything you have done, I beg to remain always, * * * C. B. Smeltzer.”

The petition further alleges that the note signed by defendants Rhodes, Coughlan, and Smeltzer is the note sued on, and that the foregoing letter from Smeltzer related to the indebtedness due thereon.

The defendant Smeltzer demurred to plaintiff’s petition as amended upon the following grounds:

1. That the note sued upon was due and payable June 22, 1924, that more than ten years have elapsed before bringing this action, and it is, therefore, barred by the statute of limitations.

2. That the letter does not constitute an admission that the debt is unpaid, or a promise to pay the same, sufficient to constitute a reviver of the debt under section 11018 of the Code.

3. That the letter was merely an offer or acceptance of an offer to compromise or purchase the note sued upon, and does not constitute an admission that the debt is unpaid, or a new promise to pay the same, sufficient to constitute a reviver of the debt under section 11018 of the Code.

This demurrer was overruled. Defendant Smeltzer stood on the ruling, and judgment was entered against him for $1,611.54, from which he appeals.

Defendant contends that the court erred in overruling the *734 demurrer, first, because the facts stated in the letter and petition were not sufficient to constitute an admission that the debt evidenced by the note was not paid, and, second, that such statements were not sufficient to constitute a new promise to pay the same.

It may be conceded that an action upon the note is barred by section 11007 of the Code, par. 6, unless the statute is tolled by allegations in the petition which bring it within the provisions or section 11018 of the Code.

Section 11018 of the Code provides:

“Causes of action founded on contract are revived by an admission in writing, signed by the party to be charged, that the debt is unpaid, or by a like new promise to pay the same. ’ ’

This court has uniformly construed this statute as meaning that it is unnecessary to show both cm admission that the debt is tmpcdd, and a new promise to pay the same. Either one is sufficient. Mahon v. Cooley, 36 Iowa 479; Ayres v. Bane, 39 Iowa 518; Stewart v. McFarland, 84 Iowa 55, 50 N. W. 221; Nelson v. Hanson, 92 Iowa 356, 60 N. W. 655, 54 Am. St. Rep. 568; Senninger v. Rowley, 138 Iowa 617, 116 N. W. 695, 18 L. R. A. (N. S.) 223; In re Sleezer’s Estate, 209 Iowa 56, 227 N. W. 644; Koht v. Dean, 220 Iowa 86, 261 N. W. 491.

In Mahon v. Cooley, 36 Iowa 479, loc. cit. 482, we said:

“The statute provides that an admission or new promise in writing will revive the cause of action when barred by the expiration of the time limited for the commencement of suits. Rev., sec. 2751. Both are not required; the admission alone is sufficient. It is not regarded as a contract, but is simply a written declaration that the debt is not paid.”

In Stewart v. McFarland, 84 Iowa 55, loc. cit. 56, 50 N. W. 221, we said:

“ It is well settled that under this statute both an admission that the debt is unpaid, and a new promise to pay, are not required to revive the cause of action, but either alone is sufficient for that purpose.”

In Nelson v. Hanson, 92 Iowa 356, loc. cit. 357, 60 N. W. 655, 54 Am. St. Rep. 568, we said:

*735 “It is not necessary, in order to revive a cause of action under this provision, that there be both an admission that the debt is unpaid and a new promise to pay it, * * * either is sufficient.”

In the recent case of Koht v. Dean, 220 Iowa 86, loc. cit. 89, 261 N. W. 491, 493, this court, speaking through Justice Donegan, said:

“It is apparent * * * that these notes * * * were * * * barred by the statute of limitations * * * unless the causes of action founded thereon were revived or renewed. The plaintiff by * '* * amendment to her petition, * * * sought to establish a revival of the indebtedness * * * under section 11018 of the Code. * * * No claim is here made by the plaintiff that the letters in question contain any new promise to pay, nor is this necessary. It is sufficient that they contain an admission that the debt is unpaid.” (Italics ours.)

The first question for consideration is whether or not the language used in the letter, together with the allegations of the petition that the note sued on is the identical note referred to in the letter, constitutes an admission that the debt represented by the note is unpaid.

The determination of this question must be considered in connection with the rule that it is not requisite for the sufficiency of such admission to show that the party said in so many words, “I admit that this note is unpaid.” It is sufficient if the words used contain an implication of the existence of the debt and that it is unpaid. Will v. Marker, 122 Iowa 627, 98 N. W. 487; Senninger v. Rowley, 138 Iowa 617, 116 N. W. 695, 18 L. R. A. (N. S.) 223; Doran v. Doran, 145 Iowa 122, 123 N. W. 996, 25 L. R. A. (N. S.) 805; Koht v. Dean, 220 Iowa 86, 261 N. W. 491.

In Will v. Marker, 122 Iowa 627, loc. cit. 628, 98 N. W. 487, this court said:

“Under our statute causes of action founded on contract are revived by an admission in writing, signed by the party to be charged, that the debt is unpaid. It is not necessary, however, that this admission be an express one; it is enough if the writing clearly and unequivocally refers to the instrument in suit, and clearly admits that it is not paid.

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Bluebook (online)
269 N.W. 888, 222 Iowa 732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcclure-v-smeltzer-iowa-1936.