Peyton v. Stuart

13 S.E. 408, 88 Va. 50, 1891 Va. LEXIS 8
CourtSupreme Court of Virginia
DecidedJune 18, 1891
StatusPublished
Cited by12 cases

This text of 13 S.E. 408 (Peyton v. Stuart) 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
Peyton v. Stuart, 13 S.E. 408, 88 Va. 50, 1891 Va. LEXIS 8 (Va. 1891).

Opinions

Lacy-, J.,

delivered the opinion of the court.

The hill was filed hy the appellee, William A. Stuart, on the 28th of December, 1886, wherein it is set forth that on the 14th day of September, 1882, the “ Greenbrier White Sulphur Springs Company,” a corporation duly incorporated under the laws of the state of West Virginia, made its certain negotiable note in writing, hy which it promised to pay, thirty days after the date thereof, at the Bank of Lewisburg, West Virginia, the sum of $4,000 to William A. Stuart, George L. Peyton, and IT. M. Mathews, as joint endorsers; that said note was duly protested for non-payment when due, according to law.

Another note, like the foregoing, for $2,000; and another for $7,500, like the foregoing — curtail and discount on this note of $2,605; another note for $5,000 — curtail and discount on this of $995.43, and $4,148.05 paid on this note. That all these notes were protested, and not paid by the said “ The Greenbrier White Sulphur Springs Company,” nor by George L. Peyton, nor hy the said TI. M. Mathews, but by the said William A. Stuart; that the maker of these notes, the said The Greenbrier White Sulphur Springs Company,” is insolvent, and so is II. M. Mathews, and that George L. Peyton is, as joint endorser with him, bound to pay to him one-half of the money so paid hy him, the said William A. Stuart, and that when judgment had been obtained on this indebtedness, and liens secured on the land of the said George L. Peyton, that he, the said William A. Stuart, is entitled to he subrogated to the rights of the creditor as against the said George L. Peyton.

. On the 7th of December, 1886, the circuit court of Augusta rendered a decree for the following account:

1st. As to the solvency or insolvency of the Greenbrier White Sulphur Springs Company. ' ■
2d. As to the solvency or insolvency of the estate of Henry M. Mathews, deceased.
[52]*523d. What amount is due the plaintiff from his joint endorsers for contribution upon the notes filed with the bill, or upon said judgment filed with the bill, or is due said plaintiff' from such of said endorsers as may be found to be solvent.

And leave was given the said George L. Peyton to file his answer in this cause in sixty days thereafter, which was done accordingly.

The said George L. Peyton filed his answer, saying that, while he had no independent recollection on the subject, he supposes it is true that the notes described in the bill were executed by the said “ The Greenbrier White Sulphur Springs Company,” and endorsed jointly by the complainant, the said respondent, George L. Peyton, and the said H. M. Mathews, as alleged, and that originally said Stuart, Mathews, and respondent were jointly and equally bound by said endorsement. Respondent, did not. know, and.called for proof, of any alleged payments made on these by said William A. Stuart. That it is admitted that H. M. Mathews is dead and insolvent; but respondent denies the insolvency of the said “ The Green-brier White Sulphur Springs Company,” and the statement that nothing can be made out of it; that so far from being insolvent, that it is possessed of a large amount of good and solvent assets, sufficient to pay all or within a small fraction of its liabilities ; that these assets consist of unpaid stock subscriptions, the purchase price of mortgage bonds sold, and of unencumbered real estate, personal property, &c., and that the said complainant is himself indebted to the said company in a sum not less than $94,000 for unpaid stock subscriptions and for bonds of the company' bought and not paid for, and that the charge of insolvency comes with a bad grace from him, the said William A. Stuart; that the said Stuart had not been compelled to pay these notes held by him as security for the maker, but had acquired them by purchase at a discount of fifty per cent., and that at the time of the purchase he was legally indebted to the company, and when he acquired the note the [53]*53debt became extinguished. That the said Stuart cannot call on the respondent for contribution, because payment has been provided for by placing one hundred and ninety of the mortgage bonds at the par value of $500, that have been deposited with the cashier of the creditor bank as collateral security therefor, and that the said collateral should be exhausted before one of the securities should be held liable for them. That, independently of the cpiestion whether the Greenbrier White Sulphur Springs Company is or is not solvent, and of the question whether the said notes or a part of them are or are not secured in other ways, to the exoneration of the said George L. Peyton, the said George L. Peyton denies that there is now any liability on him to the said William A. Stuart on account of the said notes in the said bill described. On the contrary he claims that on account of a contract, and agreement to that end, made by the said William A. Stuart, he has been released from all liability for these joint endorsements; that the notes in question were given by the said company for the purpose of raising money to make improvements on the property owned by it, and when endorsed by the said William A. Stuart, Henry M. Mathews, and George L. Peyton, as accommodation endorsers, they being all large and equal stockholders in said company, the money so obtained was used in the improvement. and in the furnishing of the property of the said company, and on the basis of improvement so made a large amount of the stock of the company was issued as full paid stock.

On the 4th day of November, 1882, George L. Peyton held $37,500 of the stock of the said company, for which he paid in cash the sum of $17,500, the balance of it being issued in consideration of betterments and improvements placed on the property, and for the payment of which notes of the company were outstanding and unpaid, endorsed by the parties interested in the company.

In this state of affairs, and on the said 4th day of November, 1882, George L. Peyton sold to William A. Stuart all of [54]*54his said, stock, on the distinct understanding and agreement that said stock was sold on the basis of cost, and that the said George L. Peyton was to be relieved of all liability, as endorser or otherwise, for the debts of the said company, said Stuart agreeing to return to Peyton all of his paper, including interest and discount paid. That said agreement was reduced to writing, as follows :

“ Richmond, Va., Nov. 4th, 1882.
“ I have this day bought of George L. Peyton his stock on the basis of costs and $5,000. I am to give him up his paper, including discount and interest paid, and pay Dr. Moorman about $4,000, and enough in addition to make $5,000. Said Peyton is to have his salary on the first of January, so far as it has not.been realized from the company, after taking from his account and charging back to said Stuart any board-bill to said Stnart or his family which has been charged to said Peyton. Said Peyton is to throw no obstacle in the way of said company regaining or holding possession of their property, and release any claim I have to any of his salary. And any amount I pay said Peyton on his salary I am to hold as a debt against the White Sulphur.
[Signed] “William A. Stuart.”

That the stock sold, as set forth above, on the 4th day of November, 1882, to said AWlliam A.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Melton v. Chesapeake & Ohio Railway Co.
78 S.E. 369 (West Virginia Supreme Court, 1913)
Stuart's Ex'or v. Peyton
34 S.E. 696 (Supreme Court of Virginia, 1899)
Ward v. Churn
18 Va. 801 (Supreme Court of Virginia, 1868)
Phippen v. Durham
8 Va. 457 (Supreme Court of Virginia, 1852)
Commonwealth v. Adcock
8 Va. 661 (Supreme Court of Virginia, 1851)
Smith's Adm'r v. Charlton's Adm'r
7 Gratt. 425 (Supreme Court of Virginia, 1851)

Cite This Page — Counsel Stack

Bluebook (online)
13 S.E. 408, 88 Va. 50, 1891 Va. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peyton-v-stuart-va-1891.