Wheat v. Dotson

7 Ark. 699
CourtSupreme Court of Arkansas
DecidedJanuary 15, 1852
StatusPublished
Cited by2 cases

This text of 7 Ark. 699 (Wheat v. Dotson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wheat v. Dotson, 7 Ark. 699 (Ark. 1852).

Opinion

Mr. Justice Scott

delivered the opinion of the Court.

To this action of debt on a sealed instrument — a single bill for $200, payable the first day of March, 1848, the defendant below interposed a special plea of partial failure of its consideration, which, as he alleged, was the sale and purchase of some lands and of an improvement upon the public lands. To this plea a demurrer was overruled, and the plaintiff below refusing to answer further, judgment was rendered accordingly.

The main question presented is a new one in this court in its present aspect, and is by no means free from difficulty. We think however, it may bo solved in the light of general princples and of the adjudged cases as satisfactorily to the professional mind as any that can come up, although it is undeniably embarrassed by some highly respectable decisions. The greater number of these, however, will be found to have departed from the true principles and spirit of the legal doctrine in question only in restricting two much the field of its legitimate operation. As urn must, in order to arrive at a clear comprehension of the main question before us, look somewhat radically at the doctrines of the law involved, we shall prefer to postpone the consideration of several minor questions until after we shall have examined the general question of the validity of the defence in the common law courts, of partial failure of consideration, in general reference to pleading and the interpretation of contracts beyond the sphere of merely local jurisprudence, as affected by our statutory regulations.

When a defendant, in a suit upon a contract in a common law court, comes in and asks to be permitted to interpose a defence founded upon a partial failure of its consideration, he certainly applies for a kind of relief that would have been refused him there peremptorily at one period in the history of those courts, and which at that period could have been obtained only in the equity courts. And it was during that period that the rule obtained as to this doctrine, which is now so often spoken of in our books, as the “old rule.” Hence, the doctrine in queston is in its nature and essence an equity doctrine; although now administered in the common law courts. And. this no less so, although in truth and in fact it might have been originally a doctrine of the ancient common law, stifled by artificial technical rules and driven for refuge into the equity courts. It is far more probable, however, from its essential properties and appropriate adaptation to a condition of advanced civilization, that itis a pure equity doctrine derived by these courts from the civil law. And this probability is strengthened by the circumstance that no common law term expresses with exactness the true legal idea of this doctrine,, while one derived from the civil law, in its present received signification, does so with great clearness.

The almost obsolete word “defalk,” falls far short, and although “discount” and “mitigation of damages” approach more nearly, still the one does not fully express the idea, and the other does somewhat more. And like the term “equitable off-set,” fails to present to the mind the essential, that the matter that is to be the foundation of the mitigation or the off-set, to be within the doctrine, must a,rise out of the transaction only on which the suit is founded, and cannot come out of a different affair. “Recoupment,” however, as it is now understood, expresses all this, as it is the keeping back of something that is due, because there is an equitable reason to withhold it, and is now uniformly applied where a man brings an action for a breach of a contract between him and the defendant, and the latter can show that some stipulation in the same contract was made by the plaintiff which he has violated; when the defendant may, if He choose, instead of suing in his turn, recoup his damages arising from the breach committed by the plaintiff whether they be liquidated or not. And thus the law will cut off so much of the plaintiff’s claims as the cross damages will come to, and in effect hold that cross claims arising out of the same transactions shall compensate each other, and the balance only be recoverable by the plaintiff. (Toml. Law Dic., Recoup. Ives v. Van Epps, 22 Wend. Rep. p. 156.)

With this understanding of the essence and nature of the doctrine of recoupment, we will proceed to trace rapidly its recognition and gradually development in the common law courts, both in England and in this country, premising first, however, two particulars worthy to be kept in mind, as tending to aid materially in the elucidation of the subject:

1st. That this doctrine has not grown up in the common law courts, upon the ground that the express contract upon which the suit is brought is to be considere d void, and that the recovery is allowed as upon a quantum meruit or quantum valebat upon an implied contract: or that such express contract has been rescinded, and thus a return or an offer to return or its equivalent must be required as a pre-requisite to the admission of the defence. On the contrary, it has grown up under the auspices of quite another and distinct principle of the common law, that has been always operative and of late years has not only been a great favorite of the courts both of law and equity, but of the legislature — that of the law’s abhorance of multiplicity and circuity of action, which can never legitimately tolerate a second litigation on the same matter, where a fair opportunity can be afforded by the first to do final and complete justice between the parties. (McAlister v. Reab, 4 Wend., at p. 492. Caswell v. Coare, 1 Taunt. 566 p., Mansfield.

2d. That recoupment differs from off-set in two essential particulars, that is to say, in being confined to matters only arising out of and connected with the contract upon which the suit is brought, and in having no regard to whether or not such matters be liquidated or unliquidated.

There canbe no doubt but that by the ancient common law, it was a fixed principle that if a contract was shown to be tainted with fraud, it could not be made the foundation of a recovery to any extent whatever. And it was also a principle equally well established that if a party was injured by partial failure of the consideration for the contract, or by the non-fulfillment of any of its stipulations, or of a warranty touching its subject matter, the injured party could not defend himself in an action on the contract by proving those facts, but could obtain redress only by a cross action. So, it was a like fixed principle that if one contracted to employ one for a certain time, at a specified price for the whole time, and discharged him without sufficient cause before the expiration of the time, he was bound to pay the whole amor» at of wages for the full time.

Nevertheless, it is equally well known that all these rigid rules of the common law courts have materially yielded by a gradual process to the influence of common justice, common sense and common convenience. Thus, the last mentioned rule is now held to have more especial reference to the sustaining of the action than to the admeasurement of the damages to be recovered thereby, and it has become settled that although the whole wages is prima facie the measure, yet the true rule of damages in such cases is the actual loss or injury sustained by the party ready and willing to perform. (Walworth v. Pool, 4 Eng. 394.

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7 Ark. 699, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wheat-v-dotson-ark-1852.