Compton v. Bowns — 5 Misc. 213

Majority

p. 213

Compton v. Bowns.

(New York Common Pleas—General Term,

October, 1893.) .

Headnote

A question of law upon uncontradicted evidence is raised by an exception to the ruling of the court, and to present that question on appeal from the City Court, it is not necessary that the case should purport to contain all the evidence.

A payment made and intended as of the whole amount due and in discharge of the entire indebtedness, is' ineffectual as part payment to defeat the operation of the Statute of Limitations.

An account of items upon one side and payments merely upon the other, is not a mutual account.

Payment of the ascertained balance of an account in settlement of the dealings between the parties, does not constitute an item of account from which the Statute of Limitations begins to run, within section 386, Code of -Civil Procedure.

Appeal from judgment of the General Term of the City Court affirming judgment on verdict.

Action on an account for balance of commissions on sales of cargoes of coal for defendant.

The case appears in the opinion.

James L. Bishop, for defendant (appellant).

Hyland & Zabriskie, for plaintiff (respondent).

Upon the conclusion of plaintiff’s evidence the defendant, moved to dismiss the complaint on the specific ground that the claim in suit was barred by the Statute of Limitations ; and again, at the close of the case, for the same reason, he requested the direction of a verdict in his favor.

To enable us to determine whether, in denying the motions, the court below committed legal error, it is not necessary that the record should purport to contain all the evidence. Remsen v. Wheeler, 3 Silv. Ct. App. 43; Halpin, v. Ins. Co., 118 N. Y. 165 . The exception to the denial of the motions duly presents the question for adjudication. Turner v. Weston, 133 N. Y. 650 , 65L

It is conceded that the Statute of Limitations is a conclusive .answer to the action, unless the defense be obviated by the

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payment on the 7th of June, 1882. The legal effect of that payment is the solitary question before us.

Treating the payment as on account of a claim against which the statute was running, its inefficacy to prevent the bar is-plainly apparent. By the uncontroverted evidence the payment was of the balance of account between the parties, and was intended by the defendant in full settlement of Ms entire indebtedness to the plaintiff.

“ The account on February loth stood to his credit $359.54. I added interest to June 7th, $6.78, which made $366.42. * * * I gave him a check on June 7th, 1882? adding interest from February 15th, the amount was $366.42. * * * This closed the whole business.”' To the same effect is the testimony of the plaintiff himself. “ I received a sum of money from him by check dated June 7,. 1882, $366.42; that sum was the balance shown by his account * * * just the sum which Mr. Bowns admitted to be due to me.”

It is elementary law that the effect of part payment in defeating the operation of the Statute of Limitations, depends upon the promise it implies to pay the residue; but if the. payment be intended, not as a discharge pro tanto, but as a complete liquidation of the entire demand, how can an engagement to pay more be inferred ? The implication of an acknowledgment of the continuance of the debt from an act supposed and designed to extinguish it, and of a promise of further payment from a payment made" and intended as final and complete, is a palpable absurdity. Arnold v. Downing,. 11 Barb. 554 ; Harpers. Fairley, 53 N. Y. 442 ; Sands v. Gelston, 15 Johns. 511 ; Hale v. Morse, 49 Conn. 481 ; Weston v. Hodgkins, 136 Mass. 326 ; Parsons v. Clark, 59 Mich. 414 ; Wood Lim. §97; Buswell Lim. § 77.

Apprehending the force of the foregoing argument, the respondent seeks shelter under section 386 of the Code of Civil Procedure, but this provision is as ineffectual as section 395 to rescue his claim from the operation of the statute. For, in the first place, the account, consisting apparently of

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debits on the one side and payments on the other, is not the “ mutual, open and current account, where there have been reciprocal demands between the parties,” contemplated by the statute (Green v. Disbrow, 79 N. Y. 1 ), and, in the second place, if it be such an account, still the payment relied on to defeat the statute, being in discharge of the balance upon a closed account and in final settlement of the transactions' between the parties, cannot, in the nature of things, be that “ item ” in “ an open and current account ” from which the cause of action accrues and the Statute of Limitations begins to run. The proposition is so self-evident as to dispense with argument to elucidate and sustain it. It is an inevitable corollary from the reason of the rule of limitation applicable to mutual accounts. Green v. Disbrow, 79 N. Y. 1 , 10 ; Gunn v. Gunn, 58 Am. Rep. 447 , 454.

The judgment should be reversed and a new trial ordered, costs to abide the event.

Bookstaver and Bischoff, JJ., concur.

Judgment reversed and new trial ordered, costs to abide event.

Cases cited

Remsen v. Wheeler 3 Silv. Ct. App. 43 N.Y. 1890-06-03 p. 213
Halpin v. Phenix Insurance 118 N. Y. 165 N.Y. 1890-01-14 p. 213
Turner v. Weston 133 N. Y. 650 N.Y. 1892-05-24 p. 213
Arnold v. Downing 11 Barb. 554 N.Y. Sup. Ct. 1852-01-13 p. 214
Harper v. Fairley 53 N. Y. 442 N.Y. 1873-09-23 p. 214
Sands v. Gelston 15 Johns. 511 N.Y. Sup. Ct. p. 214
Green v. Disbrow 79 N. Y. 1 N.Y. 1879-11-18 at 10 p. 215