Wally v. L. N. Dantzler Lumber Co.

81 So. 489, 119 Miss. 700
CourtMississippi Supreme Court
DecidedMarch 15, 1919
DocketNo. 20644
StatusPublished
Cited by4 cases

This text of 81 So. 489 (Wally v. L. N. Dantzler Lumber Co.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wally v. L. N. Dantzler Lumber Co., 81 So. 489, 119 Miss. 700 (Mich. 1919).

Opinion

SteveNS, J.,

delivered the opinion of the court.

This is the second appeal of this case. The opinion of this court as reported in 114 Miss. 601, 75 So. 433, [712]*712has a full statement of the pleadings as then presented. We sustained a demurrer to the original bill, but remanded the cause with leave to complainant to file an amende ^ bill. After the cause was remanded to the chancery court, an amendment to the bill was filed, and complainant by this amendment seeks to recover upon certain checks and drafts, some of which are made exhibits, while others are alleged to have been lost. After the amendment, appellants renewed their demurrer to the bill as amended, the chancellor, overruled the de'murrer, and from his decree this appeal is prosecuted.

The original bill, among other things, averred that the complainant was doing a regular sawmill business, was buying sawlogs and manufacturing the same into lumber, and arranged with the defendants to cut logs from their own lands and the lands of others and float them down the rivers to Moss Point for the account' of complainant; and that in these mutual dealings large advancements were made by checks issued by complainant in favor of the defendants; and that certain drafts, were drawn by defendants on complainant, which drafts were duly accepted and paid. An itemized statement of the account was made an exhibit to the original bill showing the various advancements and the alleged credits from the proceeds of the logs delivered by the defendants to the complainant’s manufacturing plant at Moss Point. The original bill prayed for the balance due on this itemized account. The extent and character of the amendment to the original bill may be stated in language of counsel for appellee, as follows:

“The gist of the amendment was that the indebtedness alleged to be due appellee arose from a number of advancements made appellants by written drafts and checks. Copies of these written instruments were attached to the amended bill and made parts thereof. . . . Kecovery is now sought upon the drafts and checks themselves, which are exhibited to and made parts of the bill.”

[713]*713The demurrer, which was renewed to the hill as amended, submits that the items attempted to be sued for are barred by the three-year statute of limitation, while appellee insists that the six-year statute of limitation applies. Appellants also insist that the law of the case as announced on the former appeal is controlling and that no new issue was presented by the amendment. We held on the former appeal that the account sued on was barred by the three-year statute. We are now confronted with the question, as to whether the complainant may declare upon paid and canceled checks and drafts, and thereby change the suit from one upon an open account to an action upon these checks and drafts so as to escape the three-year statute of limitation.

In disposing of the present appeal it is unnecessary, we think, to discuss to what extent the rule of the law of the case applies and controls this second appeal. We proceed to a consideration of appellee’s contention that “the written instruments evidence the debt and the law implies the promise to pay,” and consequently that section 3097, Code of 1906, applies. This in a way presents two questions: First, may a complainant or plaintiff in an action sue upon a paid and canceled cheek or draft in a way to characterize the suit upon a written instrument; and, secondly, has the complainant done so in this case?

In Lehman v. Powe, 95 Miss. 446, 49 So. 622, one claiming to be the creditor of the estate of T. J. George, deceased, attempted to probate certain checks which had been issued, paid, and cancelled. “The probate consisted in presenting to the clerk two canceled checks, with the affidavit required” by our statute. Our court, by Smith, J., observed:

“These canceled cheeks disclose no liability at all on the part of the estate to any one. In fact, they showed no liability from any person to another, and could not have been used as a foundation for a suit in [714]*714any court. They could have been used, it is true, as evidence in a suit for money loaned, if in fact they related to such a transaction, but only as one link in the evidence necessary to maintain such' a suit. Their mere introduction in evidence in such a suit, unaided by other evidence, would not have proven anything.”

If this be good law and controlling as an authority, a declaration based upon the canceled cheek alone, unaided by other material averments, would be an .insufficient declaration in law. The, position is sound, we think, that, in any action between the drawer and payee of a canceled check, such paid or canceled check on its face contains no promise to pay and carries no presumption of liability whatever. This is not a suit upon an unpaid check or upon a draft which has been accepted but is unpaid. Here the bank has honored and paid each of the checks and drafts sued upon. If the cheeks remain unpaid after having been duly presented for payment at the proper bank, they would then import a “debt from the drawer to the payee.” 2 Daniel on Negotiable Instruments, par. 1646. The presumption ordinarily would be more against than in favor of the drawer. As stated by the Supreme Court of Idaho, in Camas Prairie State Bank v. Newman, 15 Idaho, 719, 99 Pac. 833, 21 L. R. A. (N. S.) 703, 128 Am. St. Rep. 81:

“Usually a check is given for money borrowed or a debt contracted, and in commercial transactions, as well as in law, it is equivalent to the drawer’s promise to pay, and an action may be brought thereon as upon a promissory note. 1 Morse on Banks & Banking, section 388.”

The check, whether unpaid or paid, carries no presumption of an obligation on the, part of the payee to refund the amount of money thus transferred. It is elementary that to recover the money thus paid the declaration or bill must set forth the character - of the transaction, or, in other words, state the real contract between the parties. The check may evidence borrowed [715]*715money or may discharge an honest obligation which the drawer then owes the payee. The canceled check on its face is not a written promise of the payee, and the law would not imply a promise from the mere introduction of the paid check. The amended bill itself answers the second inquiry presented. The pleader in this ease did not stop with the mere statement and presentation of paid checks and drafts, bnt the bill expressly charges that these drafts and checks were issued as advancements upon sawlogs to be cut, rafted and delivered by the defendants to the complainant at its manufacturing plant at Moss Point. There was a running account-extending over a long period of time. The bill alleges that the defendants failed to deliver a sufficient number of logs to pay back the moneys advanced by means of these checks and drafts, and the suit after all is a suit to recover money advanced on timber to be cut and delivered. The bill is sufficient to state a cause of action, but its sufficiency does not rest alone upon the presentation of the canceled checks. The real purpose of these checks must be shown by material averments of the bill and upon trial would have to be sustained by competent testimony, in addition to the canceled documents themselves.

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Cite This Page — Counsel Stack

Bluebook (online)
81 So. 489, 119 Miss. 700, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wally-v-l-n-dantzler-lumber-co-miss-1919.