Murphy v. Hubble

63 Ky. 247, 2 Duv. 247, 1865 Ky. LEXIS 57
CourtCourt of Appeals of Kentucky
DecidedFebruary 15, 1865
StatusPublished
Cited by5 cases

This text of 63 Ky. 247 (Murphy v. Hubble) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murphy v. Hubble, 63 Ky. 247, 2 Duv. 247, 1865 Ky. LEXIS 57 (Ky. Ct. App. 1865).

Opinion

CHIEF JUSTICE MARSHALL

delivered the opinion of the court:

This case was formerly before the court on the appeal of Hubble, against whom Murphy had obtained a judgment on a note in which Hubble was the surety of Lyon. The opinion of the court reversing the judgment is reported in 1st Duvall’s Kentucky Reports, page 278. The judgment was reversed for the omission to credit or deduct a small sum, which the plaintiff had admitted to be usury, embraced in the note. But, as the opinion states, Hubble pleaded, in substance, that he executed the note upon the promise, assurance, and agreement of the plaintiff, that he would also procure the signature of one Goode thereto, which he had not done, &c. Wherefore, he says said note is not binding upon him, &c.; and the important question then presented, was as to the sufficiency of the matter thus pleaded in bar.

The court decided in effect, that, whether the plea was regarded as relying on the fact that the plaintiff had agreed that the note should not be obligatory on Hubble unless he-, [248]*248the plaintiff, should procure the signature of Goode, or on the fact that the note was delivered by .Hubble to the plaintiff on the same condition, it could not, in either aspect, bar the action; because, in the first aspect, a parol agreement could not destroy the obligatory force of the' written note, and because, in the other aspect, a note or bond cannot be delivered by the obligor to the obligee as an escrow. But whether or not the plaintiff’s failure to procure Goode’s signature might not, with proper averments, have entitled the defendant to recover damages upon a counter-claim, the court declines to decide, “because, the defendant does not allege that he sustained any damage by reason of said failure,” which was relied on merely as a defense to the action.

After the return of the cause to the circuit court, Hubble filed an amended answer and counter-claim, in which, after a statement importing an agreement between plaintiff and himself that plaintiff would procure the signature of Goode as co-surety, and that the note was not to be binding on Hubble unless this was done, and that plaintiff had not procured said signature, it is further stated, among other things, that Lyon, the principal obligor, had become and is insolvent, and that Goode was solvent at the date of the note and is still solvent, and that, by reason of plaintiff’s failure to procure Goode’s signature, the defendant has sustained damage to the amount of f-, &c.

The plaintiff’s objection to the filing of this answer, and his demurrer to it when filed, having been both overruled, to which ruling he excepted, he filed a reply, denying the alleged agreement, and denying that Hubble had sustained any damage from his failure to perform it, or any other agreement, &c.

■ Upon the issues thus made on the counter-claim the parties went to trial, there being, according to the former opinion of this court, no defense to the action on the note. The plaintiff, however, asked for instructions which related exclusively to his right to recover on the note. For this reason, as well as because a verdict and judgment were rendered against Hubble for the whole amount of the note (except the small amount [249]*249of usury before noticed), tbe action of the court in granting or refusing these instructions will not be stated.

On the motion of Hubble, the court instructed the jury to the effect, that, “ if the note was signed by Hubble as surety of Lyon and left with plaintiff, with an understanding and agreement that he was to procure the name of L. C. Goode as co-surety with defendant, Hubble, before the note was to be obligatory on defendant, and he failed to procure said name, the plaintiff is responsible to the defendant for any damages he may have sustained by reason of said failure; and the jury, in arriving at the damages, may take into consideration the solvency of Goode and the insolvency of Lyon.”

Under this instruction, and with evidence before them which fully justified the finding of the fact hypothetically submitted in favor of Hubble, the jury found for the plaintiff the amount of the note less the sum of usury which had been ascertained to be embraced in it, and found for the defendant, Hubble, on his counter-claim, one half of that amount; and a judgment for each party was rendered accordingly.

As no complaint is or can be made of the verdict and judgment for the plaintiff, rendered in strict conformity with the former opinion of this court, the only questions now to be decided arise in the proceedings on the counter-claim. The counsel for Murphy seem indeed to have regarded the question as to the sufficiency of the counter-claim as substantially identical with that as to the sufficiency of the defense in bar founded upon the same facts; and in the grounds of dumurrer to the counter-claim, in the instructions asked for on the trial, and in the argument presented in this court for the appellant, the same principles are appealed to as invalidating the counter-claim that had already been held fatal to the plea by which it was attempted to bar the action.

But although it has been decided in numerous cases, and in this case when formerly here, that the obligatory effect of a note or bond cannot be destroyed (nor impaired) by a cotemporaneous parol agreement between obligor and obligee, relating to and purporting to restrain its obligation, and that such note or bond delivered by the obligor to the obligee cannot be [250]*250made an escrow by a parol agreement between them made at the time of delivery, that it shall not be obligatory unless some specified act be done by the obligee; it does not follow that such an agreement,'and especially if it comprise an undertaking by the obligee to procure another surety, must, because it is ineffectual for certain purposes, and even for that for which it appears to have been primarily designed, therefore be deemed utterly invalid and ineffectual for all purposes.

The law will not enforce such an agreement for the attainment of its direct and immediate or expressed object of changing the terms or legal effect of a written instrument which is the act and deed of the party who seeks enforcement, or of defeating the legal effect of the delivery by which, according to law, it has become his act and deed. The agreement, therefore, cannot be specifically enforced upon or against the instrument to which it relates, and which remains obligatory, notwithstanding the agreement.. But although to this extent unenforceable, it is not prohibited by law. It is not illegal, but merely insufficient in its form to operate coercively in the particular manner designated; and the obligee in the bond might observe and give effect to it without any violation of law or public policy.

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Cite This Page — Counsel Stack

Bluebook (online)
63 Ky. 247, 2 Duv. 247, 1865 Ky. LEXIS 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murphy-v-hubble-kyctapp-1865.