Obear v. First National Bank

33 L.R.A. 384, 97 Ga. 587
Supreme Court of Georgia·Decided December 2, 1895·Published·Cited by 22 cases

Opinion

Simmons, Chief Justice.

This was an action upon a promissory note, not under seal, which was executed and by its terms made payable in the State of Alabama. . The note was dated February 9, 1888, and was payable on demand. The suit was filed April 17, 1894. "Upon the note were unsigned entries reciting the payment of certain amounts thereon on August 7 and August 23, 1888. By an amendment to the declaration the plaintiff alleged that these amounts were paid on the dates mentioned, and that by the law of Alabama partial payments upon a note not barred by the statute of [588] limitations operate as a recognition of the debt and establish a new date for the commencement of the period of limitation. It did not appear by whom the entries on the note were made. The defendant demurred generally to the declaration as amended, and demurred to the amendment on the ground that the facts therein stated do not take the note out of the statute of limitations, and th&t the case is governed by the statute of limitations of Georgia, and not that of Alabama. The defendant also moved to dismiss the suit because it appeared to be barred by the statute of limitations of this State. The demurrer and the motion to dismiss were both overruled, and to these rulings the defendant excepted.

In this State all actions upon promissory notes not under seal must be brought within six years after the same become due and payable. (Oode, §2917.) The note sued upon was payable on demand, and therefore was due immediately. (Code, §2791.) In order for a partial payment upon a note to constitute a new point from which the period of limitations will begin to run, the payment must be entered upon the note, and the entry must be made in the debtor’s own handwriting, or subscribed by him, or some one authorized by him. (Code, §§2934, 2935.) And the holder of the note cannot be the agent of the debtor to malee such an entry. (Shumate v. Williamson, 34 Ga. 245; Wright v. Bessman, 55 Ga. 187.) If, therefore, the case is controlled entirely by the law of this State, the action was barred, it appearing that more than six years had elapsed from the time the right of action accrued until the suit was filed, and it not appearing that either of the alleged payments on the note was entered thereon by the debtor or by any person authorized by him.

It is well settled that the limitation of actions is controlled by the lex fori, and not by the law of the place where the contract was made or is to be performed. This was conceded; but it was contended that the rule is differ[589] ent as to the statute of frauds and laws of that nature; and that while the period of limitation in this case is that fixed by the law of Georgia, the law of Alabama governs with regard to the effect of partial payments in constituting a new point for the commencement of that period; and such payments being of themselves sufficient for this purpose under the law of Alabama, it was not necessary that they should be entered on the note in the manner prescribed by the law of Georgia. In support of this contention, counsel relied upon section 8 of the code of this State, which declares that “the validity, form and effect of all writings or contracts are determined by the laws of the place where executed.”

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Obear v. First National Bank, 33 L.R.A. 384, 97 Ga. 587 (Ga. 1895).

33 L.R.A. 384 (Obear v. First National Bank) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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