Price v. Barnes

31 N.E. 809, 7 Ind. App. 1, 1892 Ind. App. LEXIS 303
CourtIndiana Court of Appeals
DecidedSeptember 16, 1892
DocketNo. 562
StatusPublished
Cited by3 cases

This text of 31 N.E. 809 (Price v. Barnes) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Price v. Barnes, 31 N.E. 809, 7 Ind. App. 1, 1892 Ind. App. LEXIS 303 (Ind. Ct. App. 1892).

Opinion

Reinhakd, C. J.

Mary Wood, a minor, was indebted to the appellant for board. She recovered a judgment against Lycurgus IT. Wood, the guardian of Mary, for the amount of the debt, with an order directing the guardian to pay it out of the ward’s estate. Subsequently the ward intermarried with the appellee Barnes. Upon a settlement with the guardian, a balance was found due the ward. The latter died in April, 1877, the debt to the appellant remaining unpaid. Wood, the guardian, being insolvent, his surety, the appellee Duling, made a settlement with Barnes, and paid him the amount due Mary, excepting some balance which Duling has paid into court since the commencement of this action. Duling is, therefore, out of the case.

The principal action is against Barnes for the amount due the appellant on her judgment against the guardian Wood.

[3]*3There was a plea of payment, a trial, and a verdict for the appellee Barnes.

The controlling question is as to the sufficiency of the evidence to sustain the plea of payment. It was proved that the appellant took of Wood, the guardian, a note for the debt, and it is claimed that this note operated as a full payment of the indebtedness. The note was not payable in bank, nor is there any evidence that it was taken as a payment of the debt, or at the creditor’s risk. Godfrey v. Crisler, 121 Ind. 203.

The evidence further tends to show that the appellant gave the guardian a receipt, and it is claimed that this is evidence that the note was taken as a full payment of the debt. The appellant denied giving the receipt. The only evidence throwing any light upon the transaction of the receipt is that of the guardian, who testified as follows:

"I received a receipt from her, said Mary Price, for the full amount of the judgment. I had got into trouble, had lost my property, and I told my sister that if she would give me a receipt, so that I could use it in making my report as guardian, I would pay her the amount as soon as I was able.”

We regard this as a sufficient explanation of the receipt, but it is no evidence of the fact that the guardian’s note was taken as an extinguishment of the debt, or at the risk of the appellant.

The most that is claimed for the appellee, upon the question of payment, is that the evidence shows the appellant took the note "for the debt.” This can not be construed to mean that it was taken as a full payment.

The burden of proof was upon the appellee Barnes to establish the facts averred in his plea of payment. This is the general rule. In this case he was required to show further, that the note given for the debt was received as [4]*4payment, and at the risk of the appellant. Godfrey v. Crisler, supra. This he failed to do, and for this reason the cause must be reversed.

Other questions are presented by the record, but they need not arise again, and we shall, therefore, not undertake to determine them.

The appellee has asked leave to assign cross-errors, and in anticipation of a favorable ruling, has so assigned them. The appellant moves to strike the same from the files, as being in violation of Rule 4 of this court. We have examined the record, and found that while the appellee has not complied strictly with the rule, there are such extenuating circumstances as we think entitle him to leave to file his assignment of cross-errors at the time the application was made. We shall, therefore, treat the assignment as having been properly made, and proceed to dispose of the question thereby presented.

The cross-error complained of is the sustaining of the appellee’s demurrer to the third paragraph of his answer.

The substance of this paragraph is, that before the commencement of the action a mutual agreement was made and entered into between Wood, the guardian, and the appellant, by the terms of which the appellant agreed to accept said Wood individually as payor of the debt, in consideration of his promise to pay the sum as soon as he was able, and to release Wood in his fiduciary character from all further liability, and that in pursuance of said agreement the appellant executed her receipt to Wood as guardian in full satisfaction of the debt, and released him as such from all further liability, and that in his next annual report he filed said receipt as a voucher in said guardianship, and was discharged as to said indebtedness.

Does this paragraph establish a novation of parties?

[5]*5Filed Sept. 16, 1892.

The doctrine of novation comes to us from the civil law and is defined as the substitution of one debtor or creditor for another, or of a new for a pre-existing indebtedness. In each of these it is required that there be a valid obligation, an extinguishment of the same and a valid new contract. Clark v. Billings, 59 Ind. 508; Parsons v. Tillman, 95 Ind. 452; Kelso v. Fleming, 104 Ind. 180; Pope v. Vajen, 121 Ind. 317.

We do not see wherein the paragraph under consideration is deficient in any of these elements. The appellant certainly had a right to release Wood as guardian, and accept the obligation of Wood, the private person. The latter also had'a right to enter into such an agreement. The extinguishment of the old debt of the guardianship was a sufficient consideration for the new one of Mr. Wood.

The fact that Wood represented both the ward and himself can not invalidate the transaction. Ordinarily, it is true, three persons are requisite to make a novation of parties. Here Wood represented two of these persons, and the appellant the third._ There can be nothing in the appellant’s contention that the old debt — that is, the judgment — was already the personal debt of Wood, and that he was personally liable for it, and that, therefore, there was no consideration. The old obligation was not his own, nor was there any liability on his part, until it was shown he had -been guilty of some breach of duty. Then it was purely the debt of the estate of his ward, until by the agreement of the parties there was a change of the debtor.

We think the answer was good, and the demurrer to it should have been overruled.

Judgment reversed.

[6]*6On Petition to Modify Judgment.

Reinhakd, J.

Since the reversal of this cause, and the expiration of the time for filing a petition for rehearing, Electus H. Duling, one of the original defendants in the court below, and nominally an appellee in this court, filed a sworn petition for a modification of the mandate herein, “by striking out his name therefrom, and so modifying said mandate as to relieve affiant from all liability for any part of the costs made upon the appeal.”

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Bluebook (online)
31 N.E. 809, 7 Ind. App. 1, 1892 Ind. App. LEXIS 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-v-barnes-indctapp-1892.