Textile National Bank v. Lawrence

192 P. 880, 49 Cal. App. 84, 1920 Cal. App. LEXIS 136
CourtCalifornia Court of Appeal
DecidedAugust 27, 1920
DocketCiv. No. 3396.
StatusPublished

This text of 192 P. 880 (Textile National Bank v. Lawrence) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Textile National Bank v. Lawrence, 192 P. 880, 49 Cal. App. 84, 1920 Cal. App. LEXIS 136 (Cal. Ct. App. 1920).

Opinion

RICHARDS, J.

This is an appeal from a judgment in favor of the plaintiff in an action brought to recover upon two certain promissory notes executed by the defendant in the year 1909 in the state of Pennsylvania. The complaint *85 in two counts sets forth these two obligations, one in each count, and prays judgment for the aggregate sum alleged to be due thereon. The complaint as to each of these obligations also alleges that at various dates between the 30th of December, 1913, and the 15th of May, 1916, the defendant acknowledged his said indebtedness in writing and promised to pay the same. The answer of the defendant denies his indebtedness upon each of those obligations, and denies his acknowledgment and agreement to pay the same as set forth in said complaint, and further pleads that both causes of action are barred by various provisions of the Code of Civil Procedure relating to the statute of limitations. Upon the trial of the cause the court gave judgment in the plaintiff’s favor upon the first count in his complaint, and in the defendant’s favor upon the second count thereof. The defendant appeals from the judgment rendered against him upon said first count.

The evidence presented on the trial of the cause showed that the defendant had removed to the state of California in the month of June, 1912, and thereafter and up to the time of the institution of said action resided therein, and that his several letters, six in all, with relation to these obligations were dated and written respectively on December 30, 1913, January 24, 1914, June 2, 1914, November 21, 1914, January 4, 1915, and May 15, 1916, while the defendant was so residing in the state of California. The sole question involved in the case upon this appeal is as to whether the defendant has by these letters or any of them sufficiently acknowledged his indebtedness to the said plaintiff upon the obligation set forth in the first count of its complaint as to take the same out of the bar of the statute of limitations.

As to the first five of these letters it is not necessary to set forth herein their contents in full, for the reason that in our opinion they do contain a sufficient acknowledgment of the existence of said obligation to keep alive the original obligation during the period between the date of the first of said letters and a date two years after the last of said five letters so written. This action was, therefore, properly brought upon the original obligation, and had the same been instituted at any time during the above period it would not have been subject to the bar of the statute of limitations. *86 The date of the commencement of this action, however, was April 6, 1917, which, as will be seen, was more than two years after the date when the last of the five letters above referred to was written; and it follows, therefore, that while the plaintiff may have been entitled to rely upon this series of acknowledgments for its right to bring this action upon the original obligation, it was not entitled to rely upon them for its right to maintain this action against the bar of the statute of limitations, for the reason that subdivision 1 of section 339 of the Code of Civil Procedure, as it read at the time of the institution of this action, required that actions founded upon instruments in writing executed out of the state of California must be brought within two years after the right of action accrued in this state. This being so, the plaintiff’s sole reliance for its right to maintain this action and to sustain the judgment rendered in its favor therein must depend upon the construction to be placed upon the sixth letter written by the defendant to the plaintiff on May 15, 1916. This letter reads in full as follows:

“Mr. PI. Brockelhurst,
“c/o Textile National Bank,
“Philadelphia.
“Dear Sir:
“I fully realize your position, but also know my own. I agreed to pay the Jones note at the rate of $25 a month, and did so until I received a peremptory demand from Mr. Darling to pay the collateral loan, advised that if not paid the bonds would be sold and you would immediately proceed against me for the difference.
“I want -to pay you one hundred cents on the dollar, unless you destroy my ability to make the hundred cents, and a suit for either item would cause just as much damage as for both of them. I am perfectly willing to make a monthly payment of $25 now, and can do so. My prospects are getting better all the time, and my business has been developed by me from nothing to the point where it may interest outside capital. There is a project now to form a Bush terminal here, if so, my present plant is the natural nucleus. In any event, if you and your associates can see your way clear to accept a monthly payment at this time, you can depend upon it that my account will be eventually *87 balanced without a penny of loss. I do not want any lawsuit at any time, as it can do only harm and cannot hasten matters.
“I am going to be in Cincinnati as a.delegate in July, and expect to be in Philadelphia for a few days. I will be glad then to state to you frankly how I am situated.
“Tours truly,
“V. C. Lawrence.”

It is the respondent’s contention herein that the foregoing letter contains a sufficient acknowledgment of the obligation sued upon in the first count of its complaint to take the case out of the statute of limitations. We are unable to give our assent to its contention, since we cannot find in the terms of this letter any such unequivocal acknowledgment of said obligation or unconditional promise to pay the same as would suffice to keep alive said obligation beyond the time when it was otherwise barred by the provisions of section 339 (subdivision 1) of the Code of Civil Procedure.

The case of Rodgers v. Byers, 127 Cal. 531, [60 Pac. 43], would seem to be squarely in point sustaining this view. In that ease the court held that such promises contained in a defendant’s letters as “I will liquidate that note as soon as I get the money,” and “I wish it was in my power to send you money at. this time, but it is not. Will send you some as soon as I can get it. I hope to get money soon. Will sell cattle at the first good offer,” and “I have no intention of not paying the note and will as soon as I can but cannot now,” do not constitute absolute and unconditional promises to pay. In reference to these the court says: “In none of these letters is there an absolute and unconditional promise to pay. The promise in each case is made conditional upon the promisor’s financial ability.”

In the ease of Snyder v. Dederichs, 39 Cal. App. 628, [179 Pac. 535], the defendant’s purported acknowledgment was in the following terms: “Tour letter received in regard to the money I did get from Willard ... If I would make money and see my way through I would send you some money, and I will the first chance that I make something I will help you. ... I loaned a party some money which he promised sure by next month I would get $300 of. Should I succeed in this I will send you sure $150 or $200. At the present lime I cannot do anything. I can not.

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

Related

Snyder v. Dederichs
179 P. 535 (California Court of Appeal, 1919)
Nixon v. Ramsey
180 P. 649 (California Court of Appeal, 1919)
Powell v. Petch
136 P. 55 (California Supreme Court, 1913)
Rodgers v. Byers
60 P. 42 (California Supreme Court, 1900)
Bullion & Exchange Bank v. Hegler
93 F. 890 (U.S. Circuit Court for the District of Northern California, 1899)

Cite This Page — Counsel Stack

Bluebook (online)
192 P. 880, 49 Cal. App. 84, 1920 Cal. App. LEXIS 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/textile-national-bank-v-lawrence-calctapp-1920.