Myers v. Muskegon Improvement Co.

160 N.W. 456, 193 Mich. 697, 1916 Mich. LEXIS 636
CourtMichigan Supreme Court
DecidedDecember 21, 1916
DocketDocket No. 123
StatusPublished

This text of 160 N.W. 456 (Myers v. Muskegon Improvement Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Myers v. Muskegon Improvement Co., 160 N.W. 456, 193 Mich. 697, 1916 Mich. LEXIS 636 (Mich. 1916).

Opinion

Stone, C. J.

This is the third appearance of this case in this court. It was begun by declaration filed March 24, 1908. When here first, it was reported in 169 Mich.' 689 (135 N. W. 949), and the second time in Myers v. Erwin, 180 Mich. 469 (147 N. W. 458). A reference to those opinions will render an extended statement of the case here unnecessary.

It is the claim of the defendant George L. Erwin, who alone defends in this case, that there is only one question involved in this appeal, and that 'is whether the payments on May 19, 1902, of $50, on February 20, 1904, of $82.23, and on December 20, 1905, of $15, [699]*699prevented the running of the statute of limitations *as to the defendant, and it is claimed that, if none of these payments prevented the running of the statute of limitations as to him, the note is barred, since all the other payments were made more than six years before the commencement of the suit, and the statute of limitations was duly pleaded, and it is said that these payments would not keep the cause of action alive, unless they were made under such circumstances as to raise an implied promise on the part of George L. Erwin to pay the debt; that these payments were all made by David D. Erwin with money received for and upon the release of lots from the mortgages held as collateral to the note sued upon, and it is urged that George L. Erwin, as only one of two or more joint contractors, would not lose the benefit of the statute of limitations, so as to be chargeable by reason only of any payment made by any other or others of the joint contractors — citing 3 Comp. Laws, § 9745 (3 Comp. Laws 1915, § 12336), 5 How. Stat. [2d Ed.] § 14152.

The plaintiffs claim that, first, the defendant should be held to be equitably estopped from insisting upon his plea of the statute of limitations by reason of the confidential relations existing between the executors of the estate and David D. Erwin, who was acting for all of the defendants in the matter; and also, second, that the payments made upon the note by David D. Erwin, which he received from the collateral, should, under the circumstances of this case, be held to constitute a new promise, thus preventing the running of the statute. When this case was first before this court, plaintiffs asserted that the payments made upon the note by David D. Erwin, being the last three, of $50, $82.23, and $15 respectively, which he received from the collaterals, should, under the circumstances of the [700]*700case, be held to constitute a new promise, thus preventing the running of the statute of limitations.

Upon the first trial in the court below, upon findings of the court, judgment had been entered for the defendants. This court held that, upon the record as it stood then, without the testimony of Thomas Hume or of the defendant George L. Erwin, the collateral notes and mortgages were originally given to George L. Erwin, trustee, for the five individuals who signed the note in suit, and he assigned them to John L. Woods; that the property, for which the notes and. mortgages were given, was the property of the five men, including this defendant; that the notes and mortgages themselves, though standing in the name of George L. Erwin, trustee, actually belonged to the same individuals; and that, subject to the assignment to Woods as collateral, they still owned them, so that, when any money was collected from any of them, it belonged to the five makers of the note, subject to the duty to pay it over to Woods, by reason of the assignments to him. After setting forth the circumstances relating to the payment of the Shaw Electric Crane Company notes and mortgage, and the substitution of the Mason mortgage therefor, Justice Brooke, speaking for the court, said:

“Under these circumstances, we are disposed to hold that when, on April 22,1901, David D. Erwin collected from one of the mortgages, which he and his four associates owned subject to the assignment as collateral to Woods, and forwarded the same to the executors to be applied upon the note, said payment should be considered as a voluntary admission by the defendants that the debt was then due, from which a new promise can and should be implied. At that time no payments had been made upon the note for nearly five years, but the correspondence shows that during the period frequent inquiries were made by and on behalf of the executors, which were responded to by David D. Erwin. On February 20, 1904, the firm of Smith, Nims, Hoyt & Erwin, by David D. Erwin, re[701]*701mitted to the executors a further sum of $82.23, collected from the same source, which was duly credited upon the note.”

The opinion concludes in this language:

“Our conclusion that the later payments indorsed upon the note (made under the circumstances indicated) serve to prevent the running of the statute renders it unnecessary to discuss the plaintiffs’ first proposition.”

That proposition was that the defendants should be held to be equitably estopped from insisting upon their plea of the statute of limitations by reason of the confidential relations existing between the executors of the estate and David D. Erwin, who was acting for all of the defendants in the matter.

When the case came before this court the second time from a directed verdict and judgment for plaintiffs, the record contained the testimony of George L. Erwin for the first time, and we held that that introduced into the case evidence of certain new facts, namely:

“That he was never a member of, nor connected with, the law firm of which David D. Erwin and F. A. Nims were members, and knew nothing about their transactions with John L. Woods, whom witness had never seen and did not know personally; that the Muskegon Improvement Company failed, turned over all its remaining property to trustees, held no more meetings, and went out of business in 1894, at which time he severed his connection with the concern; that he had been absent from Muskegon most of the time for 12 or 13 years and supposed the improvement company’s matters were all closed up; that he had no interest in the collateral given to secure the note in question, nor in any surplus which might arise therefrom after such note was paid; that he had no knowledge David D. Erwin made any collections on such collateral, or any payments on said note subsequent [702]*702to 1894, and had never, directly or indirectly, authorized or consented to the payments in question.”

Justice Steere, writing the opinion, which was concurred in by all of the Justices, said:

“These were statements of fact not in the previous record. If they are true, the payments in question, made by David D. Erwin without appellant’s knowledge or consent, would not deprive the latter of claiming the benefit of the statute of limitations, which by his plea he has sought refuge under [citing the statute and decisions of this court]. There is evidence in this record, some of it documentary, tending to negative appellant’s testimony, but the conflicting testimony raised issues of fact in the case which were not for the court to decide in a jury trial, and which should have been submitted to the jury under appropriate instructions as to their legal significance and directions as to what verdict should be rendered according as the jury might determine the facts.”

And the judgment below was reversed and a new trial granted.

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Related

In re Lowerre
5 Mills Surr. 135 (New York Surrogate's Court, 1905)
Myers v. Muskegon Improvement Co.
135 N.W. 949 (Michigan Supreme Court, 1912)
Myers v. Erwin
147 N.W. 458 (Michigan Supreme Court, 1914)

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Bluebook (online)
160 N.W. 456, 193 Mich. 697, 1916 Mich. LEXIS 636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/myers-v-muskegon-improvement-co-mich-1916.