Sommerville v. Stephenson

3 Stew. 271
Supreme Court of Alabama·Decided January 15, 1831·Published·Cited by 15 cases

Opinion

By JUDGE COLLIER.

The bill of exceptions very [275] naturally suggests for our consideration these questions 1st. Is it competent to vary a contract in writing, by verbal agreement, made at the time the contract is entered into, and is such the effect of the testimony, with regard to the indulgence of the obligor? 2nd. Is assumpsit the proper remedy against the assignor of a specialty on an indorsement under seal? 3d. Can the copy of a registered deed of conveyance, be read in evidence, without accounting for the original?

1st. Where parties have reduced their contract to writing, it is presumed that it contains every stipulation in regard to the subject matter of contract, in which their minds concurred; and hence neither party will be permitted to prove verbal reservations or conditions to haye been made at the time it was entered into. In Dupuy v. Gray,a the plaintiff in error was sued as the assignor of a bond. On trial in the Court below, he offered to prove a verbal agreement, made at the time of the assignment, that he was not to be liable until it should be ascertained by suit, that the money could not be ‘collected of the obligor, which evidence was rejected by the Circuit Court, and this Court ruled, that such evidence went to vary and control the terms and legal effect of the contract in writing, and its rejection was proper. To the same point is Wesson v. Carroll.b

In Free and another v. Hawkins,c the indorsee brought an action against the indorser. The defence set up, was a want of notice of the dishonor of the note; whereupon the plaintiffs tendered asa waiver of such notice by the defendant, evidence that he knew and expected that payment of the note was not to be enforced, until after the estates of the maker were sold, and then only in the event of the proceeds of the estates not being sufficiently productive; and that whatever might be the course of law, such was the understanding when the note was given. The evidence was rejected at nisi prizes; On a rule nisi, to set aside the nonsuit and have a new trial, the Court of Common Pleas held, that the evidence was properly rejected; and remarked, that if the parties mean to vary the legal operation of an instrument, they ought to express such variance; if the)' do not express it, the legal operation of .the instrument remains. The effect of the evidence tendered, would be to vary the note and to control its legal operation. ' The case of Hoare v. Graham,d was referred-^ to by tlie Court, as analogous in principle, to the one be - [276] them, and as deciding that that which is expressed in writing, and which is the best evidence of a contract, should alone constitute the contract. In Hunt v. Adams,a evidence was offered, to shew that at the time the note was signed by Adams as security, it was agreed between him anc* the plaintiff’s intestate, that he should not be called upon, until an attempt had first been made to obtain payment of Chaplin, the principal in the note. This evidence was held to have been rightfully rejected by the judge vvho tried the cause; and it was ruled, that parol evidence cannot be admitted, to alter the legal effect of a written simple contract. To the same effect are the cases of Preston v. Lerceau and Coker v. Grey.b In Stackpole v. Arnold,c it is decided, that there is no difference with regard to the admissibility of explanatory or contradictory proofs, between simple contracts in writing and sealed instruments.

If these decisions are to be relied on as correctly ascertaining the law, it does not require the aid of further illustration to manifest, that the opinion of the Court below, by which oral evidence of an extension of the time of payment was admitted, is erroneous. And the question is so clearly determined by these authorities, that I do not feel authorized to dissent from them, the more especially as my researches furnish no opposing adjudication.

Had the point been res integra, without any other light than principle to guide, I should have hesitated before I determined that oral evidence of a fact, concomitant with the indorsement, was not admissible, by way of excuse for a failure to give notice of the dishonor of a note. Though I have no objection to the principle of the rule which excludes such testimony, I believe its application to have, been extended full as far, as the purposes of justice demand. But the question has been settled and I acquiesce, believing it is more important in most eases, to the security of rights, that the law should be fixed and certain, than that it should be correctly established. If it had appeared from the declaration that the agreement for indulgence was verbally made, advantage should have beep claimed on demurrer, but it does not appear from the declaration, that the agreement was not in writing.

2d. The action of assumpsit is not maintainable upon writings under seal, where they are sued on as the four»- # dation of the action, but in such case, the party must bring debt or covenant, according to the character of the writing.

[277] In order to determine what action is the remedy upon the assignment, it is necessary to inquire into the nature of the obligation it imposes. The assignor undertakes with the assignee, that if he will employ due diligence to get the money of the maker and fail, then if he will give a reasonable notice of the failure, he will pay him. It is obvious that the assignment imposed no present duty upon the assignor, but is only an act from which he may become liable, upon the performance of after acls by the assignee, and can be considered as but inducement to his liability.

In Deeborough v. Vanness,a the Supreme Court of New Jersey decided, that a demand and notice, or something equivalent, are the corner stones of the indorser’s right of recovery. In Dwight v. Emerson,b the law is declared in equivalent language, and so are all the author-itics.

In Brickell v. Batchelor,c it was held, that covenant would not lie on an assignment under seal of a bond for tobacco, the breach assigned being that the obligor did not pay. The opinion of the Court.is a brief declaration, that covenant will not lie, without even suggesting the proper remedy. It is clear that debt will not lie in such case, for the obligation of the assignor “is collateral and not absolute,” Whiting v. King.d Assumpsit then being the only remaining action for the enforcement of contracts, must be the legal remedy, or else the party would be rem-ediless at law, which cannot be.

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Sommerville v. Stephenson, 3 Stew. 271 (Ala. 1831).

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