Pratt v. Corns

183 N.W. 71, 214 Mich. 390, 1921 Mich. LEXIS 671
CourtMichigan Supreme Court
DecidedJune 6, 1921
DocketDocket No. 95
StatusPublished
Cited by7 cases

This text of 183 N.W. 71 (Pratt v. Corns) 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
Pratt v. Corns, 183 N.W. 71, 214 Mich. 390, 1921 Mich. LEXIS 671 (Mich. 1921).

Opinion

Stone, J.

The following cogent facts appear in plaintiff’s statement of facts, and in the record: In 1909 the plaintiff was a farmer. Fred Judson and his brother, George Judson, were copartners in the produce business. In 1907 the plaintiff borrowed money from Fred Judson and gave'him three promissory notes as follows: One note was. dated July 24, 1909, was for $40, due 60 days after date with interest at 6 per cent. Indorsed on the back of this note was the following: “September 23, 1913. Received $50 on the within for interest.” The second note was dated October 28, 1909, was for $600, due six months after date with interest at 6 per cent. On the back of this note was indorsed the following: “September 23, 1913. Received $26.91 on the within to apply on interest.” The third note was dated November 8, 1909, was for $75, due 30 days after date with interest at 6 per cent. On the back-of this note was indorsed the following: “September 23, 1913. Received $25 on the within for interest.”

Pratt, from. 1910 to 1912, delivered produce and property to Judson, or Judson Brothérs, and also gave a check for $350 to apply on notes. It is the claim that the total so paid amounted to $821.88. None of the proceeds of the produce and property, or check, was, indorsed upon the notes, Fred Judson died June 4, 1917. His widow, then Edna Melissa Judson, now Edna Melissa Corns, was appointed administratrix of the estate of the said Judson, deceased. The administratrix sued Pratt on the notes in the circuit court for the county of Genesee in November, 1917. Pratt appeared and pleaded the general issue with notice of a set-off, and the statute of limitations, and filed a bill of particulars as follows:

1910, March 8, Sheep to Judson..................$174.30
1910, May 19, Check,to Judsop.................. 350.00
[392]*3921911, April 29, Hay to Judson.................. $82.30
1912, July 1, Wool to Judson....................215.28
Total $821.88

It will be noted that all of the above items except the last (considered separately from the notes) were outlawed before Judson’a death, which, as we have said, occurred on June 4, 1917.

The trial occurred on May 6, 1919. It appears that on the trial attention was called to the case of Quinn v. McGovern, 97 Mich. 114, wherein it was held that in a suit brought by an administrator to recover a debt due the estate, the defendant cannot set off a counter claim which he has failed to present to the commissioners on claims. Thereupon, by permission of the court, the set-off was voluntarily withdrawn by Pratt’si counsel, and the case went to trial on the question of the statute of limitations only. The administratrix obtained a verdict and judgment against Pratt for $1,007.37, which was afterwards affirmed by this court on December 22, 1919. (See Judson v. Pratt, 208 Mich. 286.)

After the trial in the circuit court the plaintiff herein secured a revival of the commission on claims in the estate of Fred Judson, deceased, and presented the items of his set-off as a claim against s!aid estate. At the hearing before the commissioners on claims upon plaintiff attempting to prove the first three items of set-off, he was met by objection on the part of attorney for the administratrix that those items were all barred by the statute of limitations!; and as to the fourth item of set-off, the administratrix introduced testimony which satisfied the commissioners that it was paid. The commissioners held all other items to be barred by the statute of limitations, and totally disallowed plaintiff’s claim. The plaintiff appealed from the decision of the commissioners to the circuit court for [393]*393the county of Genesee, and the case is now there pending. After the decision in this court plaintiff filed this bill, and the bill of complaint herein contains the' following:

“The plaintiff is advised and believes that he cannot, under the strict rules of the common law, prove his said items of set-off upon the trial of said appeal, and that he will be totally deprived of any relief arising out of the sums that he paid upon said notes, during the lifetime of said Fred Judson, because, the first three items, amounting to $606, when considered by themselves, without reference to the said notes, are barred by the statute of limitations.
“Plaintiff further represents that owing to the agreement that the said items of set-off should be allowed by said Judson as payments upon said notes, and owing to the friendly relations existing between plaintiff and said Fred Judson, plaintiff relied upon said Fred Judson to make the proper indorsements upon said notes for the items contained in plaintiff’s set-off. And plaintiff avers that the failure and neglect of said Fred Judson to make such indorsements upon said notes constitutes constructive fraud, and entitles plaintiff to relief in a court of equity.
“Plaintiff further avers that prior to the death of said Fred Judson he, plaintiff, had a plain, full and adequate remedy at law, with full right of set-off, but owing to the death of said Fred Judson, and the peculiar statute regarding claims against estates, and the construction placed thereon by the Supreme Court, plaintiff has been deprived of proving his said set-off. The result of the statute in regard to claims against estates, and claims in favor of estates is, that the claims in favor of estates are to be enforced in the circuit court, and claims against estates are to be enforced in the probate court. In this particular instance, because the payments were not indorsed upon the notes, those payments must be proved in a separate court, and are barred unless considered in connection with said notes, and the plaintiff is without adequate remedy, at law. [394]*394Plaintiff avers that set-off originated in courts of equity and that such courts still have jurisdiction to -relieve and do relieve when the statutes of set-off fail to give adequate remedy. Plaintiff applies to this court to restrain the defendant from enforcing the unconscionable advantage that she has obtained by the failure of the statute to allow plaintiff to prove his off-set. This action in no way seeks a modification of the judgment, but merely asks that the defendant be compelled to do equity.”

The bill prayed that the defendant administratrix be restrained by the order and injunction of the court from proceeding to a collection of said judgment, and from forcing said appeal from the commissioners to trial during the pendency of this suit. Upon the filing of the bill of complaint and a bond, an injunction was issued as prayed for. The defendant filed a motion to dismiss, in the nature of a demurrer, upon the ground that the bill sets up no equitable ground for relief. The motion was heard in the court below and was granted in whole, and the bill of complaint was, dismissed for the reason that it set up no equitable ground for relief. The plaintiff has appealed.

It seems to us that to state the facts, in this case is virtually to decide it, and affirm the decree below. It appears from the statements contained in the bill that there was a distinct agreement on the part of Judson to accept the property and money in discharge of the debt, in whole or in part. Unquestionably it is this agreement that gives the character of payment, without which the transaction is regarded as matter of set-off. 21 R. C. L. p.

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Bluebook (online)
183 N.W. 71, 214 Mich. 390, 1921 Mich. LEXIS 671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pratt-v-corns-mich-1921.