McKernan v. Mayhew

21 Ind. 291
CourtIndiana Supreme Court
DecidedNovember 15, 1863
StatusPublished
Cited by7 cases

This text of 21 Ind. 291 (McKernan v. Mayhew) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKernan v. Mayhew, 21 Ind. 291 (Ind. 1863).

Opinion

Perkins, J.

The record makes the following case:

John Cain, Esq., of Indianapolis, was in debt. His son, Andrew Jackson Cam desired to relieve bis father of his indebtedness; and, being possessed of some claims upon the [293]*293Government, growing out of the Indian wars in Oregon and Washington Territories, he did, on the 30th of March, 1857, deposit with James H. MeKernan, of Indianapolis, some amount of those claims, which appear to have been transferred to him by Sellers and Friendly, one of which claims was for 1,165 dollars, and, at the same time, gave Mr. MeKernan a letter of instruction, as follows. After reciting his desire to aid his father, &c., he says:

“If such parties, [creditors of his father] as I shall designate will surrender their claims, in lieu thereof, wait the payment of the war bond by the Government, and now in your possession, I will allow them principal and interest to date. If this arrangement does not suit the parties that I will designate, you will please enclose the bond to me, at Madison, Indiana, Very respectfully, yours,
March 30, 1857. A. J. Gain.
J. H. McKernan, Esq., Indianapolis, Ind."

What designation of creditors, or further instructions, if any, were made or given by A. J. Cain, do not appear from the record. But it does appear, that, on the 3d of April, 1857, four days after the deposit of the claims by A. J. Gain, creditors began to file their demands, against John Gain, with Mr. McKernan. A list of them appears in the record. Seven creditors appear to have filed on the 3d of April, and, on that day, MeKernan executed to Thomas M. Smith, who filed the first three claims, an instrument of the following tenor:

“Received, Indianapolis, April 3d, 1857, of Thomas M. Smith, two notes as follows:
“ $100. Indianapolis, January 14, 1852.
“ Sixty days after date, I promise to pay to the order of Thomas M. Smith'Son, 100 dollars, value received, negotia[294]*294ble and payable at the branch at Indianapolis, of the State Bank of Indiana, without any relief from the valuation or appraisement laws. John Cain.”
Indianapolis, January 14, 1852.
“ One day after date, for value received, I promise to pay to Thomas M. Smith, or order, 45 dollars and 57 cents, without any relief whatever from valuation or appraisement laws.
“$45 57. John Cain.”
“Also, an account of William Smith — amount, 29 dollars and 50 cents.”
W. H. Talbott v. Thomas M. Smith, as indorser of John Cain. )
In the Marion Circuit Court, Indianapolis, October 20th, 1852.
Amount of judgment......................................... $454 28
Interest 4 years, five months, 8 days...................... 120 92
Costs accrued................................................... 9 23
$584 43
“The first note, principal, 100 dollars, and interest of 30 dollars and 53 cents, and second note of 45 dollars and 57 cents, with interest, 17 dollars and 60 cents; the account of William Smith, of 29 dollars and 50 cents, and the above judgment to be paid out of the proceeds of an account of Sellers and Friendly, of Oregon Territory, for 1,165 dollars, for goods furnished the Government, for the use of the Oregon volunteers in the Jakina Indian war, when collected by the undersigned, wbo holds a power of attorney for that purpose.
“ J. H. McKernan.”

The filing of claims continued. By the 1st of February, 1858, twenty-five claims, amounting to 5,126 dollars and 50 cents, had been placed in the hands of McKernan. Between [295]*295the 1st of February and the 8th of December, 1858, thirty-one more claims were filed, amounting to 2,382 dollars. This division of the list of claims is prefaced thus: “To come out of the next bond.” Between the 8th of December, 1858, and the 23d of September, 1859, eighteen more claims were filed, amounting to 1,845 dollars and 85 cents. This third division of the list of claim is prefaced thus: “ To come out of next bond.” It thus appears that the aggregate of claims upon John Gain, filed with MeKernan, was 9,354 dollars and 35 cents.

The record is not explicit as to the amount of war claims deposited with him by Andrew Jackson Gain. The amount he deposited on the 30th of March, 1857, is not stated. On the 5th of August, 1857, he made a second deposit of 2,382 dollars, and, on the 29th of June, 1859, he made a third deposit of 1,698 dollars; and it is clear, from the record, that he deposited, in all, over 7,500 dollars, but as to the exact amount, the record does not show very satisfactorily.

These claims, at the time of their deposit, had not been allowed by the Government, but might be subsequently, in whole or in part, and some of them in greater proportion than others. In what terms certificates were given by Mr. McKernan to creditors, other than as set out above, does not appear; nor does anything further appear as to his powers in the premises. It appears that McKernan received, in gold, upon the 1,165 dollar claim, mentioned in the instrument given to Smith, 776 dollars and 67 cents, and that he received, upon all the claims deposited wdth him, 4,791 dollars and 32 cents, but when he received the amounts does not appear, nor whether he is yet to receive a further sum upon them or not. It appears that a greater proportion of some than of other of the claims had been paid, but why is not disclosed.

The instrument above set out, given by McKernan to Smith, was assigned by the latter to Mayhew, accompanied by an [296]*296order on McKernan to pay the amounts due upon it to Mayhew.

Mayhew brought this suit, upon that instrument, against McKernan, to recover the amount he had received on the 1,165 dollar claim, mentioned in it, and he recovered below.

The instrument was assignable in equity, so that the assignee could sue upon it, in his own name, under the code. It may be observed, also, that an order, drawn upon a particular fund, amounts to an equitable assignment of such fund, or the amount of it specified in the order. Byles on Bills, side p. 74, note to 3d Am. ed.

It may be further observed, that, if a demand was necessary before suit, which we do not mean to intimate, a demand was made; and, as the suit is upon the instrument, not upon the order, it was not necessary to show an acceptance of the order.

The proper parties, we may also remark, are before the Court.

The present suit was brought by Mayhew, on the instrument given by

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Bluebook (online)
21 Ind. 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckernan-v-mayhew-ind-1863.