McCormick v. Brown
Before: Rhodes, Sawyer
Synopsis
‘ Appeal from the District Court, Eleventh Judicial District, El Dorado County.
The following are the material portions of the defendant’s letter of the 4th of August, 1863:
“Placerville, August 4th, 1863.
“Cart. J. L. McCormick, Peru, Illinois—Sir: I can now make your offer good. I have, hy a little streak, made a small raise over expenses. I will say just what I can do. I can pay you three hundred and fifty dollars at any time now, and three hundred and fifty dollars in one year from the time I do the first, and four hundred dollars in two years from the date of first payment, in American gold coin. * * * I am as anxious to pay you, Captain McCormick, as you are to have it; but I would rather have my notes in this country. * * * y0 man shall ever lose one dollar by me, for sooner or later all will and shall be made right. I am interested in some silver leads that bid fair to prove good, and it matters not if my notes are not due, the moment I lay my hands on money enough to pay you, you shall have it. How, what I wish to say is this: I want you to send my note to Mr. Jacoby. Clear me of that judgment in Ottoway. I will pay to him the first installment. Give him my notes, which will be paid on the day as soon as they become due, or sooner, if I can make the money. How, to prove this, you may have Mr. Jacoby come and see if I cannot do it. * * What I say to you will be done without fail. If I could use my name, I could make money. * * * If I lack a few dollars of my own earning, I can get help to get through with this affair of yours from a friend. How, all you have to do is to send to Jacoby or to myself, and as I have said before so I will surely do.
“Truly yours. S. A. Brown.
“ The three hundred and fifty dollars is ready. Let me hear from you soon.
“P. S. * * * How, let me clear of that judgment at once, and I will save money; otherwise, I cannot. If in time to come I am successful, I will agree to pay you even more for waiting on. me. You have nothing to fear about my not paying you, if you release me. * * *
“Yours, Brown.” _
The plaintiff had judgment, and the defendant appealed therefrom, and from an order denying his motion for a new trial.
The other facts are stated in the opinion of the Court.
Opinion — Rhodes
By the Court, Rhodes, J. : The plaintiff alleges that in 1852 he recovered a judgment against the defendant in the Circuit Court for the County of La Salle, State of Illinois, for one thousand one hundred and fifty-five dollars and fifty cents; and that, in consideration thereof, the defendant, on the 4th of August, 1863, promised, in writing, to pay the whole of said judgment in gold coin. The action was commenced in June, 1866. The Court found that the defendant, on the 4th of August, 1863, in writing, acknowledged the debt to be due to the plaintiff, and at the same time and in like manner promised to pay [184]the same to .the plaintiff in gold coin. The question is, whether the evidence sustains the finding.
It is provided by section thirty-one of the Statute of Limitations, that “no acknowledgment or promise shall be sufficient evidence of a new or continuing contract, whereby to take the case out of the operation of this statute, unless the same be contained in some writing, signed by the party to be charged thereby.”
There are two ultimate facts that may be proved in the mode prescribed—a continuing contract, and a new contract. The acknowledgment or promise made while the contract is a subsisting liability establishes a continuing contract; and when made after the bar of the statute, a new contract is created. In this case we have to deal with the latter aspect of the statute.
By the seventeenth section of the statute, an action upon a judgment can only be commenced within five years; and, by the same section, an action upon any contract, obligation, or liability founded upon an instrument in writing, other than a judgment or decree, is limited to four years. It seems now to be well established by the authorities that the statute does not operate to extinguish the debt—does not raise the presumption of payment—but it only bars the remedy, and thus becomes a statute of repose. This position is clearly sustainable upon principle, for if the debt is extinguished, there is no consideration for the new promise.
When the creditor sues, after the statute has run upon the original contract, his cause of action is not the original contract, for his action thereupon is barred, but it is the new promise. There are many authorities the other way, some holding that the new promise takes the case out of the statute, others that it removes the bar of the statute, and others still that it revives the original contract. But the better opinion is that the action is sustainable only upon the new promise, the original contract, or the moral obligation arising thereupon, binding in foro conscientice, notwithstanding the bar of the statute, being the consideration for the
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