Sims v. Scheussler

58 S.E. 693, 2 Ga. App. 466, 1907 Ga. App. LEXIS 425
Court of Appeals of Georgia·Decided September 19, 1907·No. 329·Published·Cited by 8 cases

Opinion

Hill, C. J.

Sims brought suit against Mrs. Scheussler on a note made by her and indorsed bj' her husband. In her plea she admitted the execution of the note, and that the plaintiff was the holder thereof. She defended on the ground that the note was without legal consideration, and was made by her in assumption of the debt of her husband to the plaintiff or as security for such debt, and was therefore void and could not be enforced as to her. The jury found in favor of the defendant, and plaintiff’s motion for a hew trial was overruled. The evidence in the record shows that Sims and defendant’s husband were partners engaged in the hardware business, and that, prior to the execution of the note sued on, Sims sold his interest in the business to Scheussler for the balance of the purchase-price amounting to $2,460.96. These notes were not paid at maturity, and the note for $1,200, sued on, was the outcome of efforts made by Sims to collect them. To this point the evidence presents no conflict. The plaintiff contended, that, soon after the sale of his interest in the hardware business to Scheussler, the latter gave his wife a mortgage for $6,000 on the whole.stock of hardware goods; that when he made an effort to collect his purchase-money notes, he was met by this claim of the wife; that he thereupon employed an attorney and threatened to attack the validity of this mortgage as against his notes; that in the negotiations which followed, the wife Anally gave him the note sued on for the notes held by him, made by her husband for the purchase of the goods covered by the mortgage, and in full settlement of his claim of priority of payment out of said stock of goods; that these purchase-money notes were thereupon transferred and delivered to the defendant, and the mortgage cancelled by a transfer to the mortgagee of the stock of goods; that the consideration of the note sued on was the notes made by Scheussler in payment of xhe' hardware stock, and the settlement of any claim, legal or equitable, based upon said notes; that therefore the note sued on and made by the wife was for her own benefit, and to protect her interest in the property covered by her mortgage. If this was the truth of the transaction, the note made by the wife was a valid contract, and enforceable against her under the law of this State, A wife can buy the notes of her husband, or she can make a valid obliga[468] tion in settlement of such notes, if they apparently constitute a prior claim against property derived from her husband and to which she has title or interest. Daniel v. Royce, 96 Ga. 566, 23 S. E. 493; Lowenstein v. Meyer, 114 Ga. 709, 40 S. E. 726; Atlanta Land Co. v. Austin, 122 Ga. 374, 50 S. E. 124.

The defendant denied the foregoing contention of the plaintiff. She denied that she held any mortgage on the hardware stock, or had any interest in said stock or any claim against her husband in connection with said stock of goods. She contended, that the-note sued on was made by her solely for the purpose of paying or assuming the debt of her husband to the plaintiff as represented by the notes held by him against her husband, and that her said note-was given by her as security for the payment of said notes made by her husband. If this contention was the truth of the transaction, the note was invalid and void as against the defendant. Civil Code, §2488. Any contract of the wife to which a creditor of the husband is a party, the purpose of which is to make the wife the husband’s surety or by which she assumes the payment of her husband’s debt, is invalid, and can not be enforced against her. Berry v. Goodger, 80 Ga. 620, 6 S. E. 19; Nelms v. Keller, 103 Ga. 746, 30 S. E. 572; Bank v. Carlton, 96 Ga. 470, 23 S. E. 388; Johnson v. Leffler Co., 122 Ga. 670, 50 S. E. 488; White v. Stocker, 85 Ga. 200, 11 S. E. 604; Bank of Cartersville v. Bayless, 96 Ga. 684, 23 S. E. 851; Chastain v. Peak, 111 Ga. 889, 36 S. E. 967.

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Sims v. Scheussler, 58 S.E. 693, 2 Ga. App. 466, 1907 Ga. App. LEXIS 425 (Ga. Ct. App. 1907).

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