White v. Campbell

25 Mich. 463, 1872 Mich. LEXIS 132
CourtMichigan Supreme Court
DecidedOctober 15, 1872
StatusPublished
Cited by42 cases

This text of 25 Mich. 463 (White v. Campbell) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. Campbell, 25 Mich. 463, 1872 Mich. LEXIS 132 (Mich. 1872).

Opinion

Graves, J.

This was an action for goods sold and delivered. The [467]*467defense was the statute of limitations. The plaintiff recovered, and the defendant, Mrs. White, has brought error.

The first question relates to a series of items in account, charged between July, 1860, and November, 1861, which, it is claimed, were resolved into a stated account, before the ■subsequent dealing, and left to the operation of the statute.

In reference to this the plaintiffs gave evidence conducing to show that Mrs. White agreed that the goods she purchased, should be charged to, and paid for, by her; that she should have a credit on such goods until the end cf each period of six months, during which they should be purchased; that between July, 1860, and November, 1861, they sold her goods to an amount exceeding seven hundred dollars, of which an amount of about two hundred dollars, were sold between July 1 and November 1st, 1861; that the goods were charged to her in their books; that she repeatedly promised payment, but neglected to make it; ■that in October, 1861, the credit was stopped by them, a bill rendered to her, and further credit refused; that no more goods were sold to her, on credit, until September, 1865; that between that time and August, 1866, she purchased other goods, on credit, to an amount of about seventy-five dollars; that these last articles were not regularly sold to her, but purchased of the clerks, contrary to order, .and charged in certain account books of the plaintiffs below, and not set down in the regular day-book or blotter; that separate bills were rendered for the last series of items, and not referring to the old account; that the bills were made out separately, because Mrs. White had declined paying for the first mentioned goods, and defendants in ■error hoped that, by presenting separate bills, payment might be obtained.

The evidence for Mrs. White, on this subject, tended to show that she never promised to pay for the goods, and [468]*468that no credit was ever agreed upon, or promised to her.

Upon this evidence Mrs. White could not rightly require that the jury should be peremptorily instructed, that the first account had been settled, or had ceased to be an open one, in the sense in which the phrase “open account,” is used in the statute. If the account had ceased to be an open one, it must have been because the circumstances had converted it into an account stated. There is no suggestion that the balance had been adjusted in any way, and consequently, the account could not have been settled.

The conversion of an open account into an account stated, is an operation by which the parties assent to a sum as the correct balance due from one to the other; and whether this operation has been performed or not, in any instance, must depend upon the facts. That it has taken place, may appear by evidence of an express understanding, or of words' and acts, and the necessary and proper inferences from them. When accomplished, it does not necessarily exclude all inquiry into the rectitude of the account. The parties may still impeach it for fraud or mistake.. But so long as it is not impeached, the agreed statement serves in place of the original account, as the foundation of an action. It becomes an original demand, and amounts to an express promise to pay the actual sum stated. The creditor becomes entitled to recover the agreed balance, in an action based on the fact of its acknowledgment by the debtor, upon an adjustment of their respective claims.— Ashley v. Sill, 6 Oonn., %lf6. The effect of the operation is said to be much the same as though the debtor had given his note for the balance.—Bass v. Bass, 8 Pick., 187.

Bearing in mind the nature of the' operation, and its effect upon the account, and on the rights of the parties,, the proposition is plain, that a mere rendering of an [469]*469account, or a cessation of it by the death of one of the parties, or a bare discontinuance of the dealings, will not make the account a stated one.—Bass v. Bass, 8 Pick., 187; Mandeville v. Wilson, 5 Cranch, 15; Toland v. Sprague, 12 Pet., 330-334. Such circumstances afford no evidence of any mutual understanding by the parties of the truth of the account, or the agreement upon a sum to stand as a balance.

The position of the counsel for Mrs. White is, that, by the presentation of the first account to her, and subsequent silence and inaction by her in respect to it, that account became a stated one through her acquiescence, and therefore so closed as to sustain her defense to it under the statute It has long been held that, as against a party receiving an account, and not objecting to it within a reasonable time, its correctness may be considered as admitted by him, and the balance as the debt; or, in other words, that the party rendering the account may, under such circumstances, treat it as an account stated.— Lockwood v. Thorne, 1 Kernan, 170, S. C., 18 N. Y., 290, and authorities cited. But in such cases, as the assent of the party to whom the account is presented, or sent, is an indispensable requisite, and, as such assent is to be inferred from non-objection, it should appear in some way, before implying an assent, that the account has not been objected to. If the party to whom the account is rendered, object within a reasonable time, there is no room for inferring an admission of its correctness.

The evidence for defendants in error tended to show, that the first account was rendered before the expiration of the six months’ credit, and that Mrs. White actually declined to pay it; and the evidence on her part also tended to show, that she never promised payment. But there is no evidence in the record, whether she objected or did not object to the account as a correct and proper one against [470]*470her, except in this form, unless the want of. testimony on the subject is to be taken as equivalent to evidence in her favor of non-objection. And this, it seems to me, is not admissible. Her position, when the statement of it is so varied as to show what it definitely signifies, is, that she agreed that the first account, rendered to her before the time of credit had expired, was, as against her, a correct one, and that she promised to pay the balance which it showed. But the evidence on one side, that she declined paying, and on the other, that she never promised payment» strongly, I think, impugns this position.

The use now sought to be made of the doctrine of acquiescence, will admit, if it does not require,, a few words on the subject. The cases where acquiescence has been deemed to amount to proof, or admission, of assent, have been cases where the parties insisting that assent was established by acquiescence, were not those to be inculpated by ■the admission, not those who were the unobjecting recipients of the accounts, but the parties who rendered or presented the accounts. The inference of assent from mere passiveness, has always been made against the passive party, and never in favor of that party as against the other.

The rule itself is said to have been founded, originally, on the practice of merchants (Sherman v. Sherman, 2 Vernon, 276); and in Lord Hardwick’s time it was stated to be a rule among merchants, and in equity (Tickel v Short, 2 Ves. sen’r, 239);

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Bluebook (online)
25 Mich. 463, 1872 Mich. LEXIS 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-campbell-mich-1872.