Silvis v. Ely

3 Watts & Serg. 420
CourtSupreme Court of Pennsylvania
DecidedMay 15, 1842
StatusPublished
Cited by10 cases

This text of 3 Watts & Serg. 420 (Silvis v. Ely) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silvis v. Ely, 3 Watts & Serg. 420 (Pa. 1842).

Opinion

The opinion of the Court was delivered by

Rogers, J.

This is an action on the case on a promise to pay the debt of V. & G. M. Brobst to the plaintiff’s intestate, in consideration of forbearance. The Farmers’ Bank of Reading discounted the note of Valentine and George Michael Brobst for a large sum of money, with Samuel Ely endorser. At the same time Ely took as indemnity from the makers a bond for $12,000, on which judgment was entered. Executions were issued on the judgment from time to time. The makers having failed to pay the note, suit was brought against the endorser, Ely, judgment rendered, and a large portion of the debt was collected from him by sale of his property. George Michael Brobst died, and the surviving debtor, Valentine Brobst, assigned all his estate for the benefit of creditors to the defendant. Various judgments were had against Brobst, some in Berks, some in Schuylkill, and some in Northumberland county, and among others the defendant was a judgment creditor. The plaintiff alleges that in consideration of forbearance the defendant promised to pay the debt due from Brobst to Ely. The court left the facts' to be determined by the jury, whether there was an agreement as stated between the plaintiff’s intestate and the defendant; and whether the plaintiff had performed his part of the agreement. The investigation resulted in a verdict for the plaintiff; and the inquiry is, whether in arriving at that result the court erred in the admission or rejection of evidence, or in the charge. The case resolves itself into three points : 1st. Whether there was a contract by persons competent to make it. 2d. Whether there was a consideration for the promise. And 3d. Whether the contract was afterwards rescinded. These general heads, with some preliminary matters, embrace the whole case.

First error is in rejecting a person because he was a stockholder and director in the Farmers’ Bank of Reading. Interest is a principal cause of challenge, and for that reason the juror was incompetent in a cause in which the bank had an interest. It appeared that the defendant took defence, in part, under an assignment of a judgment against Ely. The plaintiff gave the defendant [425]*425notice to produce the assignment, .which, for some reason not explained, he declined. The court had, therefore, a right to presume that the assignment contained a guaranty of the debt, and for this reason there was nothing wrong in setting aside the juror. It is nothing to the purpose that it may have' appeared afterwards there was no guaranty, for, at the time, the decision was right, and if any injury is done (and it is difficult to perceive in what it consists, when the cause has been tried-by persons free even from the suspicion of bias or partiality) it arises from himself in refusing to produce the assignment under which he claimed. A refusal to produce a paper on notice, leaves the party open to every reasonable intendment against himself. ,

The second and sixth bills have been argued together, and it is supposed the court erred in admitting the evidence, because, as it is said, it contradicted the sheriff’s amended return, “ stayed by Mr Rhoads attorney.” But, unfortunately for the argument, at the, time it was admitted, the writ was not in evidence; and, for aught that appears, the court had no knowledge of the return. But apart from this, it was properly received. It 'was part of the plaintiff’s case that the principal inducements to the contract were that the defendant was a judgment creditor, that he was desirous of becoming a purchaser of the debtor’s real estate, and for this purpose wished to control the judgments against the assigned property, and that in truth both Rhoads and Dunn were in this matter his agents, although Rhoads was originally the plaintiff’s attorney, and as such his name appeared on the record. The entry is, “ stayed by Mr Rhoads attorney,” without saying whether he was attorney for plaintiff or defendant. He was acting, as he says, for the party in interest, and under his orders; and this is consistent with the return. The evidence was pertinent to show that Dunn, who was said to be a partner with Silvis, and at any rate his attorney, took an active part in postponing the sheriff’s sale, and that it was their joint act, or perhaps the act of Dunn or under his immediate directions. It was corroborative evidence of their allegations, and as such we conceive properly received.

The third, fourth, fifth, and sixth bills contained evidence of the acknowledgments of Silvis that he made arrangements with several creditors to obtain the control-.of the various judgments against Brobst, and also his confession of an intention to purchase the property on speculation. These confessions corroborate the plaintiff’s case, and tend strongly to show the consideration of the promise, one of the points involved in the inquiry before the jury.

Seventh bill. The defendant offered in evidence an assignment, dated 26th of March 1840, of a judgment, The Farmers’ Bank of Reading v. Valentine Brobst and G. Michael Brobst, and Samuel Ely, as an equitable defence, and. also for the purpose of showing the time when certain conversations took place. The court admitted it for the latter, but rejected it for the former purpose, [426]*426Ely died before the date of the assignment, and the suit is brought by the administrator; and if a recovery is had, the money will be assets for the payment of debts. But the effect of admitting the evidence as an equitable defence would be that the assignee would be entitled to a preference; and this would operate to the injury of other creditors. If the defendant has a claim by virtue of his assignment, he is not without remedy. He may recover the whole of it if the estate is solvent, and his proportion if it prove insolvent. The suit arises out of a collateral promise by the defendant, and in no way, that we can perceive, connects itself with the original transaction between the bank and Ely so as to give the defendant an equitable defence.

The court, in the charge, left the facts fairly to the jury ; and they, in effect, have found that the defendant, in consideration of forbearance, promised to pay the debt due from the Brobsts. And the first question which arises on the charge is, as to the extent of the authority of the attorney. The intestate employed Mr Rhoads, an attorney-at-law, to collect a debt on which judgment had been rendered; and the attorney made the agreement in question, to assign the judgment to the defendant, in consideration of a promise to pay the amount due to the plaintiffs. Is this contract within the scope of the authority of an attorney ? It has been repeatedly said, that the power of an áttorney-at-law in this State is more extensive than in England. 1 Penn. Rep. 267 ; 16 Serg. Rawle 368. He is authorized to do those things which pertain to the conducting of the suit; but he has no power to make a compromise, by which land is to be taken instead of money; and it may be added, to convert his client’s land into money. 14 Serg. Rawle 309; 1 Penn. Rep. 267; 16 Serg. éf Rawle 368. Thus far his authority is limited; but the case at bar is far short of it. A judgment is but a security for a debt; and although a judgment may be rendered, yet it often happens that the debt is by no means safe, and sometimes even less secure than debts by bond, note, or book-account; and if we decide he exceeds his authority in making this agreement, we must extend the same principle to every debt placed in his hands for collection. There is no dividing line.

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Bluebook (online)
3 Watts & Serg. 420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silvis-v-ely-pa-1842.