Majority
Headnote
In order to make a tender before suit brought available, the defendant must pay the money into court and allege that fact in his answer.The plaintiff, in his complaint, among other things, claimed that defendants were indebted to him upon an award of arbitrators in the sum of fifty-two dollars and forty cents. The defendants, in their answer, set up the same award, and allege that on or about the 5th day of November, 1869, they tendered to plaintiff fifty-two dollars and forty cents, which he refused, solely upon the ground that he was entitled to interest thereon for' one year, and they further alleged that, from the making and delivery of the award, they had, at all times, been ready and willing to pay the sum awarded, and to comply with the award. There were no other allegations as to keeping the tender and readiness to pay the same, and no allegation or notice that the defendants had paid the same into court.
Upon the trial it was proved that the tender was made in a check for the amount upon a firm of bankers, payable to plaintiff’s order, and that the only objection made by the plaintiff was the one set up in the answer. When defendants offered the check in evidence, the plaintiff objected to the same on the ground that it was immaterial and incompetent under the answer'; that there was no legal tender set up in the answer. The referee overruled the objection, and received and marked the check as an exhibit. The plaintiff requested
These are all the facts to which, upon this appeal, it is important to call attention upon the question of the tender, and I am of opinion that the referee erred in reference' thereto. In order to make the tender effectual for any purpose, it was the duty of the defendants to pay the money into court, and allege that fact in their answer. (Graham’s Practice, 249, 541; Tidd’s Practice, 669; Brown v. Ferguson, 2 Denio, 196 ; Sheriden v. Smith, 2 Hill, 538 ; Simpson v. French, 25 How. Pr., 464 .) This not having been done, all the authorities hold that the tender was a nullity. If we assume that this check could have been paid into court in the place of money, it was not done. Payment to the referee was not payment into court. He was not the court for the purpose of receiving the money tendered; but simply for the trial and decision of the action. Payment to an entire
The object of payment into court is to place the money tendered where plaintiff will be sure to get it. It then becomes the plaintiff’s money, and the defendants cannot dispute his right to it. If the te.nder be established, judgment goes against the plaintiff, and he takes the money tendered for his claim, and the defendants recover costs of the action. But what is the condition of the plaintiff here? He has been defeated in the action because the tender was made, and yet he has no means to enforce the recovery of the check in this action. The provision in the judgment that he shall receive the check cannot be enforced in case the referee has parted with it, or is unwilling to deliver it to the plaintiff, and before delivery to the plaintiff the drawers may withdraw their funds from the bankers, and the check may thus become entirely worthless.
It is said that the plaintiff waived the payment of the money into court by going to trial upon the answer. How did he do this ? The answer contained another defence besides tender, and hence the plaintiff was bound to receive the answer. He could not return it, nor treat it as a nullity. The answer of tender did not contain facts sufficient to constitute a defence, and of this objection plaintiff had the right to avail himself upon the trial, and such an objection is never, under our present system of practice, waived by going to trial.
The ease of Sheriden v. Smith (supra) is cited as authority to sustain the claim of waiver. In that case there was a plea of payment and of tender, but no allegation of payment into court, and the plaintiff filed a replication, to the plea of tender, thus taking issue thereon. Judge Helsok says, that by this act on his part the plaintiff waived the defect in the plea and payment of money into court, and he held under
Dissent
Without, therefore, examining other alleged errors of the referee, I am of opinion that his judgment was properly reversed, and that the order of General Term should be affirmed, and judgment absolute ordered against the defendants, with costs.
The first question to be considered in this cause is the validity of an award. The defendants had been partners in business and had had dealings with the plaintiff. Prior to February, 1869, the partnership was dissolved, and Stephen Boon became the owner of the partnership assets and assumed its debts and liabilities. On February second he submitted a controversy between him and the plaintiff, growing out of the partnership dealings, to arbitration. On November 1st, 1869, the arbitrators made an award as follows : “ Due L. Becker, fifty-two and forty one-hundredths dollars and interest; due L. Becker one iron plow; due S. Boon two steel plows, in storehouse. Fuller.debt belongs to Boon. Watertown, November 1, 1869.”
There are two objections made by the plaintiff to this award; one is, that the defendant Stephen Boon had no power to submit the questions in controversy to arbitration. As a general rule, it is well settled, that one member of a firm cannot bind his associate by submitting a cause of action to arbitration. (Stead v. Salt, 3 Bing., 101; Adams v. Bankart, 1 C., M. & R., 681; Hatton v. Royle, 3 H. & N., 500; Karthaus v. Ferrer, 1 Pet., 222 ; Buchanan v. Curry, 19 J. R., 137; Harrington v. Higham, 13 Barb., 660 ; S. C., 15 id ,
The award is certainly very informal in its character ; and yet it must be considered as sufficient when connected with the parol evidence offered in the cause. • There is no rule of law requiring such an award to be in writing. The Revised Statutes provide that to entitle any award to be enforced according to the provisions of this title, it must be in writing. In other respects it may be oral. This award being incomplete on its face, may be supplemented by oral evidence. (Jeffery v. Walton, 1 Starkie, 213.) The memorandum in that case concerned the hiring of a horse, and all that it contained was, “six weeks at two guineas; William Walton, Junior.” Lord Ellenbobough regarded the memorandum as incomplete, but conclusive as far as it went; he said: “ The written agreement in this case merely regulates the time of hiring and the rate of payment, and I shall not allow any evidence to be given by the plaintiff in contradiction of these terms, but I am of opinion that it is competent to the plaintiff to give in evidence suppletory matter as a part of the agreement.” Tested by this rule, though the award was incomplete in its terms, it might be shown by parol what parties it concerned, what points were submitted for arbitration and to what the various clauses referred. The paper is only “ conclusive so far as it goes.” Thus, it might- be shown from
The most serious doubt in the case at bar, is whether the words “ Due L. Becker fifty-two dollars, etc., and ‘ interest,’ ” make the award uncertain upon its face. It was so held in the Supreme Court. The course of reasoning was that the award was, on its face, a due bill, and the interpretation as to the interest would be, that it was to be paid from the date. But as an award it speaks of something then due, and to be forthwith paid, and it means that, in the judgment of the arbitrators, there was then due to the plaintiff the sum of fifty-two dollars and forty cents, with interest from a time not specified. Accordingly, the award was uncertain on its face, and void.
This line of argument is not satisfactory. The part of the
The next point to be considered is, whether there was a sufficient tender on the part of the defendant.
The defendant, Stephen Boon, set up in his answer the award, and that on or about November 5, 1869, he duly tendered to the plaintiff fifty-two dollars and forty cents and the said iron plow, which the defendant refqsed, solely upon the ground that he was entitled to interest for one year on fifty-
The evidence showed that on the fifth of November the defendant S. Boon handed the plaintiff a check, drawn on a banker, for fifty-two dollars and. forty cents. The plaintiff looked at it, and wanted a year’s interest on the amount awarded, and said that if the defendant would put that in he would take it, and laid the check down. The defendant then told the plaintiff that he could have it at any time. The only objection that the plaintiff made was that he wanted one year’s interest on the award. The defendant had funds in the bank to meet the check down to the time of the trial. The defendant also wrote a receipt for the plaintiff to sign showed it to him, and asked him to sign it when he took-the' check. The signing of it was not required as a condition of giving the check.
The referee found that the plaintiff had received the iron plow, and Stephen Boon the two steel plows; and also that the check was not paid into court when the defendant’s answer was served, nor the money therefor; but that on the trial of the action it was produced and delivered to the referee, in whose possession it then was. The reference was of the class known as “ to hear and determine.”
Although the defendant S. Boon did not, before action was brought, follow the rules laid down in the authorities as applicable to tender, yet the conduct of the plaintiff was such as to waive them. Strictly speaking, he should have tendered money recognized by law as such, and if the plaintiff had objected to the check on that ground, the act would plainly have been insufficient. The plaintiff made no objection to the check in itself, but placed his refusal to receive it solely on the ground that interest for a year was not included, and to which he was not entitled. It has long been held that if
There was an irregularity also in the proceedings of the defendant after the action was brought. Regularly, he should have set up in his answer not only that he was and had always been ready to pay the amount of the award, but he should have offered to bring it into court, and should have actually paid it into court. This is a well settled rule of the common law. (Dixon v. Clark, 5 Common Bench R., 366.) For this irregularity, particularly in failing to bring in the subject-matter of the tender, the plaintiff might, by the English practice, have disregarded the answer, and might have signed judgment. (Chapman v. Hicks, 2 Crompton & Meeson, 633; Pether v. Shelton, 1 Strange, 638.) It is doubtful whether this course can be pursued under the New York Code. The correct practice would seem to be to take some step to get rid of the answer, perhaps to move for judgment on account of frivolousness. However this may be, it is well settled, in English practice, that if the plaintiff does not sign judgment, he may waive the want of bringing the money into court, on the defendant’s part, by any act indicative of his intent. There was, in the ancient law, a rule that money could not be paid into court after plea pleaded. (Thornton v. Gibson, 1 Wils., 157.) But, in later times, it has been allowed to be brought
It is true that, under the existing practice, there is usually no reply as in Sheriden v. Smith, as none is now necessary, the allegations in the answer being deemed to be at issue. (Code, § 168.) The plaintiff, however, in the present case, treated the answer as a valid one, in point of form, actually served a reply, and went to trial upon the question of the validity of the tender. The sole controversy between the parties on this branch of the case being whether the tender should .have included one year’s interest. Sheriden v. Smith is thus in point. This judgment cannot be affirmed without overruling that case. It was decided by an able court, the opinion being written by Helson, Oh. J. The case was correctly decided. It accords with Griffiths v. Williams (1 Term R. [Durnf. & E.], 710). In this case, money was paid into court aftei' plea pleaded, in an action for unliquidated damages, under a judge’s order. It was held that the order was irregular, as being an action for unliquidated damages, but that the irregularity was waived by taking the money out of court; and that the plaintiff could not have a verdict unless he recovered more than the defendant paid in. Ashhurst, J., said: “ This payment of money was originally irregular, for this
If a judge’s order be necessary, the deposit of the check with the referee in the case at bar was an equivalent, there being no objection to it by the plaintiff, and no demand being made by him for any expenses, as suggested in Griffith v. Williams (supra). The referee at the trial has the power of the court to make amendments to pleadings, summons etc,, and in general to control the conduct of such trial. (Code, § 272.)
The result of the whole discussion on the subject of tender
The order of the court below should be reversed, and that entered upon the- report of the referee should be affirmed.
All concur for affirmance, except Dwight and Gray, CC., dissenting.
Order affirmed, and judgment accordingly.