Steele v. Sellman

28 A. 811, 79 Md. 1, 1894 Md. LEXIS 36
Court of Appeals of Maryland·Decided March 13, 1894·Published·Cited by 11 cases

Opinion

Page, J.,

delivered the opinion of the Court.

This action was brought hy Robert Sellman against Nicholas W. Steele, the surviving obligor of James H. [5] Steele, Jr., to recover the amount due upon the joint and several obligation of the Steeles for the sum of two thousand dollars, payable five years after the 17th day of August, 1886, (the date of the bill,) to Pinkney L. Davis, who assigned the same to the plaintiff, on the sixth day of July, 1891. The defendant pleaded, 1st, that Pinkney L. Davis was at the time of the assignment, indebted in a “greater amount” to the defendant, upon his writing obligatory to James H. Steele for $5000, &c., which obligation the said James assigned to the defendant, prior to the assignment in the declaration mentioned, and that the same was not paid, and the defendant was willing to set-off against the plaintiff's claim; 2nd, “being for defence on equitable grounds,” the same facts set out in the first count, and further, that Pinkney L. Davis was, prior to the time of the assignment to the plaintiff hoplessly insolvent, and ever since has been, and still is; and 3rd, that before said assignment to the plaintiff, Davis released in writing all his right, title, and claim to the said writing obligatory. A demurrer to these pleas was sustained. The defendant then filed an amended plea, and a demurrer to this having been sustained, filed a “second amended plea,” in which it is alleged that the obligation in the declaration mentioned is joint and several, that Davis, the payee, at the time of the assignment to the plaintiff was, and is still, indebted in “an equal ■amount,” upon the hill obligatory of James Steele as set out in the original first plea. Replication, that the defendant on 14th September, 1891, before this suit was instituted or plea pleaded, brought suit on the single bill in the plea mentioned, and that said suit was still pending. Rejoinder, that the true amount owing by Davis to the defendant was greater than that due to plaintiff, and that said suit was brought for the excess; 2nd, that before filing his plea, the defendant had dis[6] missed the said suit; and 3rd, “by way of equitable defence,” that at the time of said assignment to the plaintiff, Davis was and is yet insolvent, as set out in defendant’s third original plea, and, further, that the assignment was without valuable consideration and fraudulent. To the third, a demurrer was sustained, and upon the first and second, issue was joined. At the trial two exceptions were taken by the defendant upon the admissibility of evidence, and two to the action of the Court in granting and rejecting the respective prayers offered by the parties.

The'first questions we are called upon to consider arise upon the disposition of the pleadings.

The plaintiff was the assignee of a non-negotiable chose in action. He therefore took it subject to all the legal and equitable defences of the debtor to which it was subject in the hands of the assignor, at the time of the assignment. The defendant, therefore, could make the same legal and equitable defences against the plaintiff, as were available to him against Davis at the time of the assignment, and before notice thereof, and to the saihe extent. Code, Art. 8, sec. 3.

This is so well settled that it is unnecessary to cite' cases to sustain it. Gittings vs. Seevers, 24 Md., 376; Harwood, et al. vs. Jones, 10 G. & J., 405; Tims and Wife vs. Shannon, 19 Md., 296.

Our Code confers the right to plead set-off in the broadest terms. “In any suit brought on any judgment, or bond, or other writing sealed by the party, if' the defendant shall have any demand or claim against the plaintiff, upon judgment, bond or other instrument under seal, &c., * * he shall be at liberty to file such demand or claim in bar, or plead the same in discount of the plaintiff’s claim, and judgment for the excess of the one claim, &c.” Code, Art. 75, sec. 12. Thus, liberty is granted to file such demand or claim in bar [7] or plead the same in discount, and no restrictions are imposed as to the amount. If the demand or claim filed in har be for a larger amount than the plaintiff’s claim, in a proper case, judgment will be given for the defendant for the excess. In a case like this, however, where the set-off arises on account of what is due by a third party, no judgment it is true can he rendered, in the same suit, for the excess; but we think no valid ground can be assigned why the statute should for that reason be held to operate so as to deprive the defendant of his liberty to file his demand or claim in bar of the plaintiff’s right to recover. Waterman on Set-off, secs. 660, 657; Kast vs. Kathern, 3 Denio, 344; Peacock vs. Jeffery, 1 Taunton, 426; Byles on Bills, 353.

The objection that the set-off is bad because the plaintiff’s cause of action was executed by the two Steeles? whereas the bill mentioned in the plea is the act of James Steele only, we think cannot be sustained. The plaintiff’s cause of action is the joint and several obligation of the parties, and it is well settled that “where two or more parties enter into a joint and several bond, it becomes the separate debt of each, and may therefore be set-off by the obligee in an action brought against him by either of the obligors. ” Waterman on Set-off, secs. 231, 232; Fletcher vs. Dyche, 2 Durnford & East, 36; Culver vs. Barney, 14 Wendell, 161; Cate vs. Gray, Hemp, 155; Owen vs. Wilkinson, 5 C. B. (N. S.,) 526.

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

Steele v. Sellman, 28 A. 811, 79 Md. 1, 1894 Md. LEXIS 36 (Md. 1894).

28 A. 811 (Steele v. Sellman) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Imbesi v. Carpenter Realty Corp.
726 A.2d 854 (Court of Special Appeals of Maryland, 1999)
United Overseas Bank v. Veneers, Inc.
375 F. Supp. 596 (D. Maryland, 1974)
Stankovich v. Lehman
187 A.2d 309 (Court of Appeals of Maryland, 1963)
Ghingher v. Fanseen
172 A. 75 (Court of Appeals of Maryland, 1934)
Messick v. Rardin
6 F. Supp. 200 (E.D. Illinois, 1934)
People's Banking Co. v. Fidelity & Deposit Co.
170 A. 544 (Court of Appeals of Maryland, 1934)
Cohen v. Karp
122 A. 524 (Court of Appeals of Maryland, 1923)
Merryman v. Wheeler
101 A. 551 (Court of Appeals of Maryland, 1917)
Davis v. Rawhide Gold Mining Co.
113 P. 898 (California Court of Appeal, 1910)
Bank of Bristol v. B. O.R. Co.
59 A. 134 (Court of Appeals of Maryland, 1904)
National Bank v. Baltimore & Ohio Railroad
99 Md. 661 (Court of Appeals of Maryland, 1904)