White v. Miller

47 Ind. 385
CourtIndiana Supreme Court
DecidedNovember 15, 1874
StatusPublished
Cited by12 cases

This text of 47 Ind. 385 (White v. Miller) is published on Counsel Stack Legal Research, covering Indiana 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. Miller, 47 Ind. 385 (Ind. 1874).

Opinion

Downey, J.

The complaint in this action, which was by the appellee against the appellant, alleges that the plaintiff and the defendant executed a note, on the 14th day of January, 1869, to one Goff, for the sum of eight hundred dollars, payable in one year after date, with eight per cent, interest, the appellee executing the note as the surety of the appellant; that afterward, on the 14th day of January, 1870, the appellee paid off and satisfied the note.

A copy of the note is filed with and made part of the complaint.

The appellant answered in several paragraphs. The first paragraph was a general denial. The second alleged, that the plaintiff, on the 15 th day of December, 1869, before the [386]*386maturity of the note, without the knowledge or consent of the defendant, and against his known desire, paid off and discharged the said note, the defendant being then and there solvent and abundantly able to pay the note. The third states, that he admits the making of the note, and that the plaintiff was his surety, and alleges that it was given for money loaned to the defendant; that shortly after the execution of the same, it was transferred to one Jones; that Jones had the money to loan for a number of years thereafter and that the defendant had (for a valuable consideration) made arrangements with Jones to become the borrower of said money for a second year, and had his promise to loan the same to the defendant at said rate of interest as long as he wanted to borrow of him; that afterward, on the 18th day of October, 1869, the defendant loaned the plaintiff the sum of one thousand three hundred dollars until the 1st day of January, 1870; that afterward, on the 15th day of December, 1869, the plaintiffj withoút right and against the known desire of the defendant, with a full knowledge of all said facts, and with the intent to cheat and defraud the defendant out of his right and privilege of becoming the borrower of said sum of eight hundred dollars for said second year, and of his prospect of having the use of said money for a number of years thereafter, and to procure an offset to the defendant's claim against him for thirteen hundred dollars, due on the 1st day of January, 1870, and to make himself the creditor of the defendant, did, on said 15th day of December, 1869, and before the maturity of said note, and while the defendant was abundantly able either to pay or secure said note, all of which was well known to the said plaintiff at the time, falsely and fraudulently represent to said Jones, the holder of the note, that the defendant did not any longer wish to borrow said money, having obtained from other sources all he needed, and that it was the defendant’s wish that the said plaintiff should become the favored borrower of said sum; that thereupon the holder of the note, being ignorant of the said facts, and relying upon such false and fraudulent state[387]*387ments of the plaintiff, did on said day deliver over to said plaintiff the note mentioned in the complaint, and receive from him the plaintiff’s note, with surety; and thereupon said plaintiff did, by the use of said fraudulent device and practice, become the borrower of said money, and the holder of the note mentioned in the complaint; that the current rate of interest at said time and place, and ever since, has been ten per cent, per annum, and that the defendant was by said means compelled to and did borrow, after great trouble and difficulty, a sum of money in lieu thereof) for which he was compelled to pay, and now is paying, interest .at the rate of ten per cent, per annum; that the payment by the plaintiff as aforesaid of. said note was not necessary for his (plaintiff’s) safety; wherefore the defendant says that the said payment was the voluntary payment of the plaintiff, and without any compulsion or obligation on his part, •etc.

The fourth paragraph alleges, that on the 1st day of April, 1870, after the payment of said note, the defendant obtained judgment in the Marion Common Pleas, against the plaintiff) for the sum of one thousand and forty-seven dollars and twelve and one-half cents, in which action the defendant was personally served with process, and appeared to the action, a transcript of which is filed herewith, and made part of the paragraph; that the claim of the plaintiff had at ■said time fully matured, and was a legitimate subject of counter-claim in said action; all of which was known at the time to the plaintiff. This paragraph is pleaded in bar of costs only.

The fifth paragraph was an answer of payment. There was no sixth.

The seventh paragraph assumes the form of a cross complaint, sets up the same facts contained in the third paragraph, and claims damages in the sum of fifty dollars for expense and trouble in prosecuting suits against the plaintiff for said sum of thirteen hundred dollars, for loss of ten days’ time in finding money to replace said sum of eight [388]*388hundred dollars, and for two per cent, interest above said rate, at which he was borrowing of said Jones, for two years ; which amount he alleges is due and unpaid, and for which he demands judgment.

The plaintiff demurred to each paragraph of the answer,, for the reason that neither stated facts sufficient to constitute a defence to the complaint, nor to entitle the defendant to-other relief claimed.

This demurrer was sustained to the second, third, fourth, and seventh paragraphs of the answer, and overruled as to the others. The defendant excepted.

The issues were closed by a reply in denial of the para^ graphs of the answer which were held to be good.

The cause was then tried by the court, without the intervention of a jury, and there was a finding for the plaintiff, a. motion made by the defendant for a new trial overruled, and judgment rendered on the finding.

The first, second, third, and fourth assignments of error allege, that the court improperly sustained the demurrer to the second, third, fourth, and seventh paragraphs of the answer.

The fifth is, that the court erred in overruling the motion: for a new trial.

We will refer to these alleged errors in their order.

The second paragraph of the answer alleges, that the plaintiff “ paid off and discharged the note,” which had been, executed to Goff on the 15th day of December, 1869, before it was due. We think we must hold that this allegation shows a payment and satisfaction of the note at that date, whatever may be the conclusion as to the law which may follow. When the surety pays the debt of his principal after its maturity, whether á suit has been commenced for its collection or not, he may unquestionably have his action to recover the amount which he has so paid from his principal.

Mr. Burge, in his work on Suretyship, page 359, says: “As soon as the principal has made default in the fulfilment of the obligation, for the fulfilment of which the surety under[389]*389took, the latter may discharge the obligation, and relieve himself of his liability. If the obligation for which the surety engaged, was the payment by the principal of a sum of money and the money is due to the creditor under the obligation or contract, the surety may pay the creditor the money due to him, even though he did not pay the debt by the desire of the creditor, the authority or consent of the principal to.the payment is proved by the joint obligation of himself and surety to the creditor.”

The surety is permitted to recover by an action of assumpsit

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Bluebook (online)
47 Ind. 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-miller-ind-1874.