Tate v. Bank of New York

32 S.E. 476, 96 Va. 765, 1899 Va. LEXIS 132
CourtSupreme Court of Virginia
DecidedMarch 9, 1899
StatusPublished
Cited by12 cases

This text of 32 S.E. 476 (Tate v. Bank of New York) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tate v. Bank of New York, 32 S.E. 476, 96 Va. 765, 1899 Va. LEXIS 132 (Va. 1899).

Opinion

Cardwell, J.,

delivered the opinion of the court.

September 14, 1896, B. E. Hughes made his two notes to the order of J. Emory Hughes, one for $1,400, and the other for $1,450, payable four months after their date, at the Traders Bank, of Lynchburg, Va., and both notes were endorsed by J. Emory Hughes and J. D. Tate for the accommodation of the maker, and discounted at the said bank.

Before maturity, the notes were also endorsed by the Traders Bank, of Lynchburg, and turned over to the Third Hational Bank, of New York, as collateral security, with other notes, for a loan by the last named bank to the Traders Bank, of Lynch-burg.

In December, 1896, the Traders Bank, of Lynchburg, gave an order to the Bank of the State of New fork upon the Third Hational Bank, of New York, for the collateral held, including the two notes in question, to be delivered after the Third Hational Bank was paid the indebtedness due it from the Traders Bank, of Lynchburg.

[767]*767Both of the collateral notes, aggregating $2,850, having been protested, and there being a balance of about $2,200 due on the note of the Traders Bank, of Lynchburg, to the Third National Bank, of New York, for which these notes were held as collateral, the Third National Bank brought its action, by notice and motion under the statute, at the March term, 1897, of the Corporation Court of the city of Lynchburg, against the maker and endorsers of the two notes, instead of upon the note of the Traders Bank, of Lynchburg, for which the two notes were held as collateral.

The Traders Bank, of Lynchburg, having paid $2,150 in cash on its note held by the Third National Bank-(not on the two notes in suit), and the Third National Bank having collected, through its counsel, between $150 and $200 on another note also held by it as collateral for the note of the Traders Bank, of Lynchburg, these sums overpaid the balance due the Third . National Bank on the note of the Traders Bank, of Lynchburg, and costs of suit and collection. The costs not having been paid before the court adjourned its March term, 1897, the suit was dismissed, with a judgment against the defendants for costs; the following order being entered in the case:

“ On motion of the plaintiff, it is ordered that this motion be dismissed, and the plaintiff recover against the defendants the costs about its motion in this behalf expended.”

The two notes, upon which the suit dismissed was brought, were then turned over to the Third National Bank, to be delivered by it to the Bank of the State of New York, in pursuance of the order of the Traders Bank, of Lynchburg, in December, 1896, and, in accordance with an agreement between the parties interested, to the effect that, when the Third National Bank was paid the original debt it held against the Traders Bank, of Lynchburg, the suit was to be dismissed, and the two notes in question turned over to the Bank of the State of New York.

This having been done, and the two notes not having been paid, the Bank of the State of New York brought its action to [768]*768the June term, 1897, of the Corporation Court of Lynchburg on each of the notes, by notice and motion under the statute, against B. E. Hughes, as the maker, and J. D. Tate and the Traders Bank, of Lynchburg, as endorsers of the notes, which motions were heard together as to the defendant Tate, he alone making defence thereto, and, both parties agreeing, all matters of law and fact involved in the motions were submitted to and determined by the court, without a jury, resulting in a judgment against the defendant, Tate, for the amount of the two notes, with interest and costs, to which judgment a writ of error was awarded by this court.

The first exception taken by the defendant is to the refusal of the court below to sustain the objection of the defendant to the introduction and further examination of a witness, J. G. Haythe, after he had been examined, cross-examined, and told to stand aside, and after he had held a whispered conversation or consultation with plaintiff’s counsel.

The practice here complained of is not without objection and should not be encouraged, but, as was said by this court in the case of Burke v. Shaver, 93 Va. 352, citing Brooks v. Wilcox, 11 Gratt. 411, and Fant v. Miller, 17 Gratt. 187, the subject of the examination of witnesses lies chiefly in the discretion of the court in which the case is tried, and its exercise is rarely, if ever, to be controlled by an appellate court. Unless it is palpably improper to grant leave for the second examination of a witness, an appellate court will not, for this cause, reverse the decree or judgment, as the trial court ought to possess much latitude of discretion in the decision of such questions.

That the plaintiff in error was prejudiced by the recall of the witness, Haythe, is not made to appear, and therefore we cannot hold that it was palpably improper for the court below to overrule the objection to the second examination of the witness.

The next contention of the plaintiff in error, arising under his second bill of exceptions to the ruling of the court below, is that the proceedings and judgment in the suit of the Third [769]*769■ National Bank, of New York, against the plaintiff in error and others, dismissed at the March term, 1897, of the Corporation Court of the city of Lynchburg, afforded an absolute and conclusive bar to any further recovery against him upon the notes then in suit; first, because the order dismissing that suit was a retraxit by the plaintiff, or it was a final and complete adjudication by the court of the matter in controversy, viz.: the two notes, the subject of this suit, and that in either case the cause of action is forever extinguished; and further, that plaintiff in error was discharged from liability upon the two notes in question because the object and effect of the arrangement entered into and carried out by and between the plaintiff in the first suit (Third National Bank, of New York,) and the Traders Bank, of Lynchburg, and B. E. Hughes (the maker of the notes), was to extend time to the maker, whereby plaintiff in error was discharged from further liability as endorser of the notes.

Was the order dismissing the first' suit a retraxit, or a final and complete adjudication by the court of the matter in controversy ?

The order dismissing the first suit was not a retraxit, and, as we shall presently see when we come to consider the evidence in this case, was not so intended; but the dismissal was by agreement between Third National Bank (the plaintiff) and the Traders Bank, of Lynchburg (a defendant), known to and acquiesced in by plaintiff in error, and to which the defendant in error (the Bank of the State of New York) was not a party.

If the Third National Bank could have maintained its suit after it had been fully paid the balance of its debt to secure which it held the two notes then in suit, it could only have been maintained for the benefit of the party who was entitled to the collateral notes after it, the Third National Bank, had been paid, viz.: defendant in error, the Bank of the State of New York.

The defendant in error was not a party to the first suit, had [770]

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Bluebook (online)
32 S.E. 476, 96 Va. 765, 1899 Va. LEXIS 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tate-v-bank-of-new-york-va-1899.