Williams v. Scott

83 Ind. 405
CourtIndiana Supreme Court
DecidedMay 15, 1882
DocketNo. 8919
StatusPublished
Cited by14 cases

This text of 83 Ind. 405 (Williams v. Scott) 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
Williams v. Scott, 83 Ind. 405 (Ind. 1882).

Opinion

Black, C.

This action was brought on the 17th of May, 1879, by the appellee against the appellants, John 'Williams and Alexander WanGordon, upon a promissory note executed by the appellants June 4th, 1877, for $1,000, payable twelve months after that date, with interest at the rate of ten per cent, per annum.

The complaint alleged a payment of $100 on the 21st of March, 1878, and a payment of $750 on the 7th of March, 1879, and averred that the residue of said note, with the interest thereon, was due and unpaid.

The appellants answered separately, each in two paragraphs.

The first paragraph of the answer of appellant Williams was in abatement, alleging that the note would not be due until the 7th of March, 1880, for the reason that on the 7th of March, 1879, in consideration of the sum of $31.94 then paid by said Williams to the appellee, the latter agreed with said Williams^to extend the time of payment for one year from the latter date, which was endorsed on the back of said note.

In the first paragraph of the answer of appellant Wan Gordon he admitted that he signed the note in suit, but alleged that he signed' it as surety for his co-defendant Williams, who was the principal therein, all of which appellee well knew; that on the 7th of March, 1879, in consideration of $31.94 then paid the appellee, “and for the consideration alone of the extension of the time for one year” by the appellant Williams, the appellee then agreed to wait on said Williams for the term of-year from and after said date for the balance of ¡said note, which agreement was then and there endorsed on ¡said note; all of which was done without the knowledge or consent of said surety.

The second paragraph of each answer alleged payment by said Williams.

The appellee replied to the several answers by general denials, and to the first paragraph of the answer of appellant Williams by two special paragraphs, which were argumentative denials.

[407]*407A trial by jury resulted in a verdict for the appellee against both the appellants for $294.25.

The appellants separately moved, for a new trial, and they have jointly and severally assigned as error the overruling of •that motion.

The motion assigned as causes, that the verdict was contrary to law; that it was not sustained by sufficient-evidence; .and that the court erred in refusing to give to the jury charge number four asked by appellant YanGordon, and in giving •charges numbered two and seven.

The instruction so asked by appellant YanGordon and refused was as follows:

4. If you find from a preponderance of the evidence that "the plaintiff, on the 7th of March, 1879, received of defendant- Williams the sum of $31.94, in consideration of the extension of time for one year from that date, and that the same ■was done" without the knowledge or consent of YanGordon, then you should find for the defendant YanGordon.”

The note upon its face was the joint note of the appellants. 'There was nothing about it to indicate that one of the makers "was surety for the other.

The answer of VanGordon alleged that he was the surety of his co-defendant, and claimed the release of said surety because of an extension of the time of payment.

This instruction did not require the jury to find that he was .-a surety. If VanGordon was not a surety for Williams, an extension of time given to the latter could not discharge the •former. Daniel Neg. Inst., section 1297; Mullendore v. Wertz, 75 Ind. 431 (39 Am. R. p. 55).

The instruction was also insufficient, in that it did not re- • quire the jury to find that the appellee had notice that VanGordon was a-surety at the time of the agreement for an extension of time. Davenport v. King, 63 Ind. 64; McCloskey v. Indianapolis, etc., Union, 67 Ind. 86 (33 Am. R. 76). There was no error in refusing to give this instruction.

The second instruction given by the court was as follows:

[408]*408“2. The defendant VanGordon, by answer, pleads that his co-defendant Williams paid to plaintiff, Scott, the sum of $31.94 ■ for the consideration alone of the extension of time for one year from the 7th day of March, 1879. This allegation must-be proved as alleged, and it is not sufficient that some other contract is shown by the evidence. And if the evidence shows-that the $31.94 was paid to Scott by Williams as and for interest in advance for one year from the 7th day of March,. 1879, which amount was to be credited upon the note, this-would be a variance between the allegations in the answer-' and the evidence, and you must find for the plaintiff.”

Two endorsements upon the note were introduced in evidence. The first indicated a payment of $100, March 21st, 1878. The second, to which the second instruction had reference, was as follows:

“Cr. on within note. Principal, $718.06; also, $31.94 for the interest on the balance of said note for one year from this date, March 7th, 1879, in consideration for which I agree-to wait for balance of said note for one year from this date.” Interest is “The compensation which is paid by the borrower of money to the lender for its use, and, generally, by a debtor to his creditor in recompense for his detention of the-debt.” Bouvier Law Dictionary.

The statute in force when this extension was granted permitted “ interest upon the loan or forbearance of money,” etc., ’to be taken yearly or for any shorter period in advance. 1 R. S. 1876, p. 599. Forbearance is a creditor’s waiting for the payment of a debt after it has become due. A valid extension of time of payment after maturity is forbearance.

The answer alleged that Williams paid Scott $31.94, in consideration alone of an extension of time by Scott for a definite-future period; that Scott, in consideration of the payment of' that sum by Williams, so extended the time for the balance of said note, and that the agreement was endorsed upon the-note, thus making reference to the writing which contained the terms of the agreement and which it was presumable was-[409]*409in the possession of the appellee, who, in his complaint, had alleged two payments on the note, one of $100 and the other of $750, and had made an exhibit of the endorsement of the payment of $100, but had not set out the other endorsement, the effect of which the appellant YanGordon thus sought to' state in his answer.

The evidence referred to by the instruction as being fatally at variance with this answer was said endorsement on the note, to the effect that Williams paid said sum to Scott for the interest on the balance of said note for a definite future period corresponding with that stated in the answer, and that Scott agreed to wait for that balance for said period, in consideration of said payment.

Not only was it impossible for the appellee to be misled by the answer, but there was indeed no substantial difference between its allegation and the evidence introduced to support it. The answer alleged, and the evidence indicated by the answer tended to prove, a certain payment for a definite forbearance and the granting of such forbearance in consideration of such payment.

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Bluebook (online)
83 Ind. 405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-scott-ind-1882.