Prussia v. Bailey

159 N.W. 140, 193 Mich. 77, 1916 Mich. LEXIS 558
CourtMichigan Supreme Court
DecidedSeptember 26, 1916
DocketDocket No. 56
StatusPublished
Cited by1 cases

This text of 159 N.W. 140 (Prussia v. Bailey) 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
Prussia v. Bailey, 159 N.W. 140, 193 Mich. 77, 1916 Mich. LEXIS 558 (Mich. 1916).

Opinion

Stone, C. J.

This is an action of assumpsit, the declaration being upon the common counts, to which was attached under the usual notice a copy of a promissory note reading as follows:

“500.00 'Detroit, Mich., June 1, 1910.
“Seven months after date we promise to pay to Ruth E. Benjamin or order five hundred dollars at-, value received, with 5 per cent, interest per annum from above date.
“Orla Bailey,
“Robert Bailey.”

Indorsed on back of note the following:

. “Ruth E. Benjamin, May 5, 1911, received interest on this note to date.
“Franklin O. Prussia.”

Under the plea of the general issue the defendants gave notice of payment of the note “set forth in plaintiff’s declaration”; also the following:

“This notice is given for the purpose of pleading payment in full of all amounts claimed in the declaration to be due plaintiff from defendants, or either of them, all of which statements and averments in the notice contained defendants and each of them will prove as a part of their, and each of their, defenses at the trial of said cause.”

It is undisputed that the note above set forth is one of a number of notes given in the purchase of a farm from Mrs. Benjamin, who was the mother of the plaintiff, and that on May 1, 1911, there remained unpaid and due two notes of $500 each, signed by both defendants, one note of $64 also signed by both defendants, and one note of $61 signed by defendant Orla Bailey alone, and that the plaintiff was the holder of [79]*79said notes, upon which notes there was interest due. It is also undisputed that defendant Orla Bailey had arranged to meet the plaintiff in Detroit, where the latter resided, on Sunday, May 7, 1911, for the purpose of paying some interest on said notes, and exchanging for the $500 note sued upon two notes, one for $200 and one for $800, payable eight months after date, with interest at 6 per cent, per annum.

The trial of the case took an unusual course for a simple suit upon a promissory note. Instead of introducing the note in evidence and resting, the plaintiff gave evidence tending to show that an agreement had been made with defendant Orla Bailey by which the plaintiff was to surrender the note sued upon for the two smaller notes, to wit, one for $200 signed by Orla Bailey, and one for $300, signed by both defendants; also that the two notes of $61 and $64, respectively, had been paid, and $100 paid and indorsed on the other $500 note, and all interest settled, leaving $900 unpaid upon the farm deal, but that such agreement had been made on Sunday, May 7,1911, and was therefore void, and that he had returned the $200 and $300 notes to defendant Orla Bailey, and that he was entitled to recover upon the note sued upon.

Upon the cross-examination of the plaintiff the following receipt given by him to said defendant Orla Bailey was received in evidence without objection, viz.:

“Detroit, Mich., May 8, 1911.
“Received of O. A. Bailey one eight months’ promissory note dated May 5, 1911, and due January 5, 1912, for three hundred dollars no hundredths (in figures and dollar sign) interest, six per cent, from May 5, 1911, one signed by O. A. Bailey and Robert Bailey jointly. Received one note dated May 8, 1911, for two hundred dollars ($200) no one-hundredths, due January 8, 1912, interest six per cent, from May 8, 1911, and signed by O. A. Bailey. These'notes given to take up a certain five hundred dollar no one-hundredths dollars note that I have of Robert Bailey and [80]*80O. A. Bailey made June 1, 1910. Received this date one hundred eighty-eight thirty-two one-hundredths dollars to apply on account of O. A. Bailey and Robert Bailey, but not to apply on the above specified notes.
“Franklin O. Prussia.”

It was the claim of the plaintiff that the reason the two small notes and the $500 note sued upon were not surrendered to Orla Bailey at the time was that they were in the bank at Detroit. It was the further claim of the plaintiff that on May 26, 1911, he returned the $200 and $300 notes to the defendant Orla Bailey in a registered letter, a carbon copy of which was offered in evidence, the said defendant not being able to produce the original, and in fact claiming that he had not received such a letter. The carbon copy of the letter was finally received in evidence, except that part which was embraced in the parentheses, which was excluded because self-serving and immaterial, the plaintiff excepting to suth ruling. The entire of said letter was as follows:

“May 26, 1911.
“Mr. Orla Bailey,
“Byron, Mich.
“Dear Sir:
“I presume that you think I have forgotten all about you, or the forwarding of the notes, but I assure you that such is not the case. As I told you the night that you were here, that the notes were locked up in a vault down town and since that time it has been impossible for me to get down town during banking hours, so that I could get same from the vault. I am inclosing herewith the two small notes, that is, the joint note of you and your father for sixty-four dollars which was due February 1st; also the note for sixty-one dollars given by you which was due February 1st. Then you will find the two hundred and three hundred dollar notes that you gave me the night that you were here. (The reason that I am returning the last two notes to you is this: I have been thinking over the matter, and I could not quite understand why I should take [81]*81your note for $200.00 without any security, when your father objected to signing same. Now, don’t misunderstand me, because I believe you are strictly honest and upright, but I am in a rather peculiar position. My means are limited. The property that you bought was bought jointly and if anything should happen to you I might have a pretty hard time to. collect the $200.00 note. I can’t understand why your father would object to making new notes at this time to cover less amount than he first signed for. Furthermore, personal notes without an indorser are very hard to convert into money, if I should ever be pressed for same. You know a good many people who are well to do that live near where you do that undoubtedly would be glad to sign the $200.00 note providing your father would not, or possibly they would be willing to loan you the money. You and Mr. Luther C. Kanouse are very good friends, and I would be willing to accept Mr. Kanouse as an indorser on your note.)
“I hope that my decision in this matter will not cause you any annoyance, as I have not intended to do so, but I believe that you will see the position that I am placed in regarding this matter. You can tell your father that I have credited one of the notes with one hundred dollars payment on the same, and also credited both of them with the interest up to the date you were here. That leaves a balance of nine hundred dollars due me, besides what interest that may accrue from the time you were here until they are paid. You said that you expected within thirty days from the time I saw you to pay some more on these notes, and I trust that you will be able to do so, as I wish to get this matter cleared up as fast as possible.

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

Related

Detroit Life Insurance v. Linsenmier
217 N.W. 919 (Michigan Supreme Court, 1928)

Cite This Page — Counsel Stack

Bluebook (online)
159 N.W. 140, 193 Mich. 77, 1916 Mich. LEXIS 558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prussia-v-bailey-mich-1916.