Prather v. State Bank

3 Ind. 356
Indiana Supreme Court·Decided May 28, 1852·Published·Cited by 6 cases

Opinion

Perkins, J.

Bill in chancery by Hiram Prather against the State Bank of Indiana, John Walker, Achilles Vawter, and Alanson Andrews, praying an injunction upon the collection of a judgment at law. Answers and replications were filed. No depositions were taken. The cause was submitted upon the bill, answers, and exhibits, and the bill was dismissed. The facts in the cause are, that at the March term, 1841, of the Jennings Circuit Court, [357] the said State Bank, for the use of her branch at Madison, obtained a judgment against said Prather, Walker, Yawter, and Andrews, for 548 dollars and 62 cents, and costs; that on the 20th day of January, 1842, a fi. fa. was issued on said judgment and placed in the hands of the proper sheriff; that on the 26th of February following, and while said execution was in the hands of the sheriff, said Prather paid the amount of said judgment to said John Walker, a co-defendant therein, and the clerk of said Jennings Circuit Court, in manner specified in the following exhibit, to-wit':

“ I, Hiram Prather, have -this day paid to John Walker, clerk of the Jennings Circuit Court, five hundred and eighty dollars and six cents, the.amount of a judgment and interest against me in favor of the State Bank of Indiana — one hundred and twenty-five dollars in state bank paper and the balance in treasury notes. I do bind myself to make the amount bankable and to keep the said Walker harmless. February 26, 1842. Hiram Prather.”

The clerk executed to Prather this receipt, viz.:

“In the Jennings Circuit Court. State Bank of Indiana v. John Walker, Achilles Yawter, Hiram Prather, and Alan-son Andrews. Assumpsit. Received of Hiram Prather five hundred and' eighty dollars and six cents, the full amount of the above judgment and interest, costs excepted, this 26th February, 1842. John Walker, clerk.”

Said clerk also .made the following entry under the judgment: “The above judgment is paid off, costs excepted. February 26, 1842. $580.06.”

Prather subsequently paid the costs.

Soon after receiving said-paper from Prather, Walker forwarded it, by John Lodge, a conductor on the Madison railroad, to the branch bank at Madison. On its delivery to the bank, the cashier wrote to said Walker as' follows:

“Madison, March 1st, 1842. Sir: We received yesterday, by Mr. Lodge, the package of scrip and Indiana notes. I think Mr. Prather ought not to expect us to take those notes at par. They are now at a discount of 25 [358] per cent. To get bankable money we will have to lose that. I will be willing to lose a part, but Mr. Prather ought also to lose a part. You know that we lent him bankable money, at six per cent, interest, which he pledged himself to pay to us without renewal; but he failed, and we have had to employ attorneys at a loss of five per cent, to us; so that I really think he ought to lose a part. Please write to me on the subject as soon as you can. Very respectfully, J. F. D. Lanier.”

The date and contents of the response to this letter do not appear, but it seems that in the course of a couple of months, Walker wrote requesting a receipt for the paper as a satisfaction of the judgment; in answer to which, Mr. Lanier immediately replied that it would not be so received, and returned the package. Walker, instead of redelivering it to Prather, subsequently appropriated it to his own use.

Nothing further appears to have been done till 1845, when the bank at first brought suit on the official bond of Walker, the clerk, but afterwards dismissed it and procured a new execution on the judgment against Prather and his co-defendants, whereupon this bill for an injunction was filed. Walker is insolvent.

Admitting, (without deciding,) for the purposes of this case, that the clerk possessed the same authority in regard to it as though he had personally no interest in the cause; and that he had the right to receive payment of the judgment while an execution was in the hands of the proper officer for its collection, still he had not, as clerk, the power to receive payment of said judgment in anything but gold and silver, without a previous authority from the plaintiff to do so. No clerk, nor sheriff, nor constable, as such, has a right, under the constitution and law, to receive payment of a judgment in anything but the legal currency of the country. Griffin v. Thompson, 2 How. U. S. Rep. 244.—McFarland v. Gwinn, 3 id. 717. No previous authority to receive paper is pretended to have been given in this case. The transaction, therefore, between Prather and [359] Walker, by which the former delivered to the latter an amount of bank notes and scrip nominally equal to the amount of the judgment, was not a payment of said judgment. But though there was no payment at the time, still, the bank may have ratified the act of the clerk afterwards and accepted the paper in payment. This ratification may have been express, or it may be implied from circumstances.

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Prather v. State Bank, 3 Ind. 356 (Ind. 1852).

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