Morriss v. Harveys & Williams

75 Va. 726
CourtSupreme Court of Virginia
DecidedSeptember 15, 1881
StatusPublished
Cited by18 cases

This text of 75 Va. 726 (Morriss v. Harveys & Williams) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morriss v. Harveys & Williams, 75 Va. 726 (Va. 1881).

Opinion

Staples, J.

The learned judge of the chancery court was of the opinion that the judgment recovered by Merrick & Sons against Charles Y. Morriss was fully satisfied and discharged by the settlement of June 5th, 1869; but that the debt for which the judgment was rendered was not extinguished, but still remained, and having been contracted prior to the conveyance of the “Montevideo” estate to Mrs. Morriss and her children, might be enforced against that estate.

With great respect to the opinions of the chancellor, I ■cannot concur in this view. It seems to me that if the judgment is to be regarded as satisfied, the debt must be •considered as also satisfied. As will be hereafter seen, the general rule applying in all this class of cases, is that the debtor’s own note does not operate as a payment of an antecedent debt, unless intended by the parties. In the absence' of such intention, expressed or implied, the note is treated as a conditional payment merely, that is, when actually [731]*731paid. If the debt has passed into a judgment, the same rule applies; the new note is considered simply as a conditional satisfaction of the judgment, and upon the dishonor of the former, the latter revives and may be enforced at law or in equity. On the other hand, when the parties provide for the extinguishment of the judgment, it may be fairly presumed they contemplate the extinguishment •of the debt upon which it is founded. If the substituted note is accepted in satisfaction of the judgment, the presumption is, in the absence of proof to the contrary, it was accepted in satisfaction of the debt represented by the judgment. By the judgment, the nature of the cause of action is changed, and the debt loses all its vitality and ceases to bind the parties. Its force and effect are then expended, and all remaining legal liability is transferred to the judgment. Wagmar v. Cochrane, 35 Ill. 154.

When once we reach the conclusion that the notes of •Charles Y. Morriss, endorsed by Harveys & Williams, were received as a conditional payment, they necessarily so operated with respect to the judgment, and whatever might be the effect at law, the lien would still remain to be enforced in a court of equity. On the other hand, if the nature of that transaction be such as to satisfy the mind that the notes were accepted in absolute payment of the judgment, or as a substitute therefor, it is to be presumed that the debt represented by the judgment was included in the arrangement and was intended to be also discharged and satisfied.

The learned judge of the chancery court has declared that neither the judgment nor the substitution of other securities will prevent a court of equity, where a deed is sought to be impeached as voluntary, from looking to the original cause of action in order to ascertain whether it was a subsisting debt contracted at the time the deed was made. The correctness of that proposition will not be. contro[732]*732verted; but where the rights of third persons have intervened, as in the case of a settlement upon a wife and children, it is certainly competent for them to show that not only the judgment, but the debt upon which it is founded, has been satisfied and discharged by the substitution of a new security. It will be conceded that if the creditor expressly agrees to accept the new security in absolute payment of this debt, he carmot afterwards revive it for the purpose of impeaching and invalidating the settlement. If the party accepts the thing, though but for a moment, for that for which the other party pays, he cannot after-wards, by his subsequent dissatisfaction, get rid of the effect of it. Hardman v. Bellhouse, 9 Mees. & Wels. 596. As already stated, the agreement need not be express, but may be implied. It is not essential that any particular form of' .words shall be used, as “full satisfaction,” or “absolute-payment,” but any language will be sufficient, which, with the surrounding circumstances, plainly indicates a satisfaction of the debt by the adoption and acceptance of a new and different security.

Sometimes the transaction amounts to a novation of the-debt by a mere exchange of securities. In such case, the new contract is accepted in satisfaction of the old—becomes-an accord executed, and discharges the original cause of action, whether the new contract is ever performed or not. Here, again, it is a question of intention, to be derived from all the circumstances, although nothing positive be-expressed. 2 Smith’s Lead. Cases, 268.

The real difficulty in all this class of cases is in ascertaining what is the real intention of the parties. Sometimes, where they have used words of plain import, the courts differ as to the true meaning and effect of the words-so used. The circumstance often relied upon, as affording strong presumptive proof of the intention, is the surrender of the original securities to the debtor. The doctrine on [733]*733this subject is thus laid down in 2 American Lead. Cases, 271: “When the securities held by the creditor are surrendered, or the note is taken as one of several items making up a large sum, and a receipt or credit is given for the whole, the inference will be strong, if not irresistible, that the debt is satisfied.”

In a case decided by the supreme court of Pennsylvania, cited in 5th Eob. Prac. 863, Eogers, J., in discussing a similar question, said: “Whether taking the separate note of one of the parties amounts to an extinguishment or satisfaction of a joint debt depends upon the intention of the parties, and, in the absence of all proof of a special agreement, the giving up or the retention of the original security will, in general, be a decisive circumstance, for it is difficult to account for the fact except on the supposition that in the one case it was intended in case of need, to enforce the joint liability, or, in the other, to depend altogether upon the responsibility of one of the joint debtors. Where a joint debtor insists that the separate note is substituted and is in satisfaction of the joint debt, the onus is upon him, and to discharge himself from liability, it will be necessary to show a special contract to that effect, or that, in addition to a separate note being taken for the amount of the debt, the original bills were given up to the debtor.” The same reasoning will apply where there is but a single debtor, for if the creditor means, in any contingency, to resort to the original indebtedness, he will scarcely be willing to surrender all evidence of that indebtedness to his debtor without fortifying him.self with some acknowledgment of the real nature of the transaction.

I am free to admit that generally the courts are reluctant to treat the new note as a satisfaction where the effect will be to deprive the creditor of a subsisting lien. But where, as in this case, there is a judgment, and the parties, by unmistakable acts and declarations, show that they con[734]*734sider the judgment satisfied and extinguished, there is less difficulty in treating the debt represented by the judgment as also satisfied. See 2 Daniel on Negotiable Ins., p. 260-1 ; see 1 Smith’s Lead. Cases, notes to Cumber v. Wane, p. 150; 2 Parsons on Bills and Notes, p. 157, and notes; Blair & Hoge, v. Wilson, 28 Gratt. 165, upon the question here discussed.

Bearing these principles in mind, let us look to the settlement of June 5th, 1869, which has already been referred to. The writing evidencing this settlement is in the following words:

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Bluebook (online)
75 Va. 726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morriss-v-harveys-williams-va-1881.