22 Gratt. 550 | Va. | 1872
Lead Opinion
The inducement to the passage of the
This section prescribes a new rule of evidence in actions, suits or other proceeding, for the enforcement of certain contracts. What contracts? Such as were made and entered into between the 1st day of January 1862, and the 10th day of April 1865. But is it applicable only to a particular class or description of contracts entered into between those periods ? or to all except a particular class or description ? The language embraces all, without exception. It is “any contract, express or implied,” &c. It plainly embraces, therefore, all contracts made and entered into between those periods, whether written or not written, uuder seal or not under seal, express or implied—any contract. The only limitation is that it must have been made or entered into between the periods designated.
And what rule of evidence is authorized and prescribed in actions, suits or other proceeding, for the enforcement of such contracts ? It is, that either party may show, by parol or other relevant evidence, what was the true understanding and agreement of the parties, either ex
With this construction and understanding of the law, it is clear that it was competent for either party in this cause to introduce parol or other relevant evidence, besides the evidence of the bond, to show what was the true understanding and agreement of the parties as to the kind of currency in which the bond upon which the suit is brought is solvable. It is expressed in the bond that it is to be paid “in such funds as the banks receive and pay out.” In a former opinion in this cause, I imperfectly attempted to show that this language unex
In what sort of currency was it solvable, according to the true understanding aud agreement of the parties ? Bid they contemplate or intend, in their contract, that it should be paid in United States or Confederate States currency? Whatever was the intention of the parties should be carried out. That is their contract.
The surrounding circumstances tend to show that they ■did not intend to contract for the payment in United States currency. They were both citizens of Virginia, which was one of the Confederate States, against whom the United States was waging a fierce and devastating war. By the laws of their country it was a penal offence to receive aud pay out United States currency. “And even if they intended (I quote from the opinion referred to) that payment should be made in such funds as the banks were receiving and paying out at the maturity of the contract, they intended the banks which then operated in the State, or which might be afterwards created by the government of Virginia, or of the Confederate States, and be subordinate to those governments, and which dealt in funds which were created or authorized by the Confederate government, or by Virginia, as a member of the Confederacy. It was no part of their contract, and never entered their heads (so far as this record shows), that payment was to be made in such funds as were received aud paid out by United States banks, or by banks which were subject to the
This is an application to the appellate tribunal to reverse the judgment of the court of trial overruling a
Is this verdict a plain deviation from the evidence ? Or is it necessary to set it aside, in order to prevent gross injustice? On the contrary, does it not attain substantial justice between the parties ? And to set it aside, would it not be in furtherance of a hard and unconscionable action? Hid the judge of the Circuit court err, therefore, in the exercise of a sound discretion, in overruling the motion to set it aside ? He certifies that the verdict was, in his opinion, “in accordance with the
This case was argued and decided at the last term of the court here. A motion was then made for a rehearing, which, by consent of counsel, was held under advisement until the November term inRichmond. The motion was, however, not acted on in Richmond in consequence of the great press of business upon the ■court during its winter session. While, however, the motion was under consideration, the opinion of the court accidentally found its way into the hands of the reporter, . and is reported in the 21 vol. of Grattan. When the mis
It is due to myself to state, that I was not satisfied with some of the views announced in the prevailing opinion, at the time it was delivered. Subsequent reflection satisfies me that my doubts were well founded, and that the doctrines enunciated in that opinion, in reference to the admission of parol evidence in this class of cases, should be considerably modified, if not entirely overruled. I propose now to give the reasons which have led me to this conclusion.
It will be observed that the bond which is the subject of controversy, bears date 9th June 1863, and stipulates for the payment, two years after date, of five thousand dollars, without interest, and in such funds as the banks receive and pay out. It is insisted, that the defendant cannot be permitted to show by parol evidence, that this contract, according to the true understanding and agreement of the parties, was to be performed in Con
There are several objections to this construction. In the first place the statute makes no such distinction. It embraces every- contract for the payment of money or currency entered into within the periods designated by the act. The first section declares, that in any actiou or suit for the enforcement of any contract, express or implied, entered into between the 1st day of January 1862 and the 10th day of April 1865, it shall be lawful for either party to show by parol or other relevant evidence, what was the true understanding and agreement of the parties, either expressed or to be implied, iu respect to the kind of currency iu which the same was to be fulfilled or performed, or with reference to which as a standard of value it was made and entered iuto. It is impossible that language could be more comprehensive. It applies to every contract within the periods mentioned, whether express or implied, whether by'parol or by deed, whether payable in .dollars simply or in currency. There is no restriction, no exception. And I do not think we are authorized, upon any considerations of apprehended-hardship or mischief, or mere conjectures of legislative intention, to restrict the operation of the statute to a certain class of contracts, in violation of this plain and positive language.
In the second place a promise to pay a specific sum in “ dollars,” or to pay so many dollars, is a contract to pay a particular kind of currency. It t is a contract to pay a specie currency. This is the legal effect of such a promise, according to universal understanding in Virginia. This rule has of course been modified by the-
It seems to me, therefore, the distinction sought to be made, in respect to the admission of parol evidence, between contracts which do, and those which do not, specify the kind of currency in which the debt is to be paid, is not sound. In the one case, the. effect of the evidence is to vary the express terms, and in the other, the legal import of the instrument.
The same principle applies, when the obligation is for the payment of a specific sum in current funds at a future day. This as clearly imports a promise to pay in funds current at the period of payment, as if it were expressed in so many words. And yet it is the constant practice under the statute, to permit either party to show by or,al testimony, the real understanding to have been a payment in the money current at the date of the contract. Meredith v. Salmon, 21 Gratt. 762, and cases there cited; Taylor v. Turley, 88 Maryl. R. 500. If there is any substantial distinction between an obligation to pay in current funds and an obligation (like the present) to pay in such funds as the banks receive and pay out, I am unable to perceive it. As a general rule, whatever
It seems to be supposed, however, that a bond or note ' for the payment of current funds at a future day, is ambiguous on its face. In other words, it is not absolutely certain whether the parties had reference to funds current at the date or at the maturity of the instrument; and it is, therefore, competent to show what they really intended. This may be so. If, however, this reasoning be correct, and the statute is to be construed as only applying to instruments of doubtful meaning, there would seem to be but little necessity for its enactment; and but little good resulting from its provisions. It would not be difficult, however, to show that the bond now under consideration, is by no means free from ambiguity. The promise is to pay “in such funds as the banks receive and pay out.” It is not a contract to pay in such funds as the banks shall receive and pay out; or may receive and pay out; or shall then receive and pay out, but such “funds as the banks receive and pay out.” It is in the present tense, and may have reference to the currency in circulation when the instrument was executed. At any rate, it is a case peculiarly proper for' the admission of parol or auy relevant evidence, in order to ascertain the real understanding and agreement of the parties. Such evidence does not, in fact, necessarily vary or contradict the writing. It does not deny that the obligation was to be performed in bankable funds. Its object is simply to ascertain what banks were in the contemplation of the parties. Did they have reference to the Virginia banks, the banks then in existence, or
The rule that parol evidence is inadmissible to contradict or vary the terms of a valid written instrument, is a rule of the commou law established by the courts, and founded upon considerations of public policy and convenience. It is not confined to deeds and instruments of a more solemn nature, but extends to every class of contracts reduced to writing. A mere note of hand can no moi’e be contradicted than a deed. The reason, as stated by a great author, is, it would be inconvenient that matters in writing made by advice and on consideration, and which finally import the certain truth and agreement of the parties, should be controlled by an averment to be proved by the uncertain testimony of slippery memory. It is, however,' a mere rule of evidence. It is subject to many important exceptions and modifications, allowed by the good sense of the courts, to meet the exigencies of advancing civilization, trade and commerce. While recognizing the rule as unquestionable, and its authority as absolutely binding, the courts, in many instances, have frittered it away by nice and subtle distinctions, difficult to be understood or reconciled with the rule itself. But, however firmly the rule is established, it may be changed or modified, and
In enacting the statute now under consideration, it seems to have been the intention of the Legislature utterly to abrogate the common law rule which prohibits proof of any contemporaneous parol agreement where there is a written instrument. Instead of perplexing the courts with difficult questions, by confining, or attempting to confine, the operation of the statute to a certain class of contracts, the Legislature probably deemed it best to permit a full investigation in every case, leaving it to the good sense of judges and juries to give due weight to the plain unambiguous writings of the parties.
When we consider the extraordinary condition of affairs created by the war—the perplexity, the anxiety and confusion pervading all classes of society; the want of care, deliberation, and oftentimes of legal counsel, in the preparation of written instruments; the fact that
' “ It would be inconsistent,” says Lord Coke, “ that matters in writing, made by advice and on consideration, should be controlled by an averment of parties.” How is it possible, with any degree, of consistency, to apply that principle to a people, three-fourths of whose territory was overrun by invading armies, and whose minds were-agitated with perpetual apprehensions of danger ? Can it be said that matters put in writing at such a period were made by advice and on consideration ? The Legislature has acted upon no such narrow and rigid rule of public policy. It *has provided a remedy for evils growing out of an unprecedented condition of affairs, which should be liberally and beneficially.applied by the-courts.
It has been said that this construction of the statute unsettles the law, and is in conflict with previous decisions. I am not aware that this precise question has-been before this court directly for adjudication. I am confident that no case can be found—not even the dictum of any judge of this court—inconsistent with the views here advanced. The cases of Boulware v. Newton and Kraker v. Shields have been cited, but those cases did not involve the point now under discussion.
In Boulware v. Newton, there was proof that the note in controversy was given upon a loan of Confederate treasury notes of their value at the time of the loan; but no effort was made, no evidence offered, to establish a parol agreement dehors the writing. Judge Iiives, in delivering the opinion of the court, said the legal construction of the instrument received no aid from extrinsic evidence. There is not the slightest intimation that such evidence, if offered, would not have been received and considered. The decision in Kraker v.
The learned counsel for the plaintiff’ seems to have construed the statute in the same way. In this very case he himself not only set the example of introducing parol evidence, hut he allowed the defendant to do the same thing without objection. Neither in his petition, nor his oral argument before this court, did he raise any question of the kind. The objection was first made in the opinion of a majority of the judges.
I am now satisfied it is better for us—the part of wisdom and sound policy—to retrace our steps, and give our sanction to the general construction of this statute as adopted in the State. Any attempt on our part to distinguish between the cases—to apply the statute to particular contracts—will only confuse and mislead the courts and profession, and fill the docket here with appeals which otherwise would never he taken.
My opinion then is, that the parol evidence adduced in this case was clearly admissible. Being admissible does it sustain or justify the verdict? Judge Anderson has so fully discussed this branch of the subject, I do not deem it necessary to do more than to devote a few moments to the consideration of the evidence. In the first place, it may be a question whether the Circuit judge has stated the facts, or merely the evidence adduced at the trial. It is true, that in the commencement of the bill of exceptions, he professes to certify the facts; but throughout he merely gives the statement of the witnesses ; aud in conclusion he says this being all the evidence. The judge, however, certifies, that in his opinion the verdict was in accordance with the true understanding and agreement of the parties, and did substantial justice between them, and that while the evidence showed that it was to some extent regarded by the parties as a contract of hazard, the hazard understood and intended, was confined to the fluctuations of Confederate currency. This is the conclusion drawn by the judge as well as the jury, from the evidence, aud is, I think, entitled to as much weight as his certificate of the statements of the witnesses ; and this upon the principle announced in Slaughter v. Tutt, 12 Leigh, 163. It was said in that case, that although “ the facts may be certified by the judge, still respect should be paid to the
Conceding, however, that the verdict is not strictly warranted by the evidence, is it the duty of this court, under all the circumstances, to grant a new trial? The opinion of Judge Baldwin, speaking for the court, in Patterson v. Ford, 2 Gratt. 23, is an answer to the question. “ The court (he said) may grant a new trial where the verdict is 'contrary to law or evidence, but the duty of doing so is not in all cases imperative. There are various considerations which may be brought to bear upon its discretion; such as the doubtful character of the question, the hard or unconscionable nature of the action or defence, the belief that the verdict conforms to the substantial justice and equity of the case, and others that might be mentioned.” He further says, it is the constant practice of the court to sustain verdicts that attain substantial practice, though not strictly warranted by the evidence or strict adherence to legal principles. In illustration of this principle he cites the case of Wilkinson v. Payne, 4 T. R. 463. In that case the action could only be sustained by the presumption of a legal marriage, of which there was no evidence; though the fact might have been proved if it had occurred, and all the probabilities were against it. The jury, however, presumed the marriage and found a verdict for the plaintiff. A new trial was refused by the Court of King’s Bench. Lord Kenyon, C. J., said: "In the case of new trials, it is a general rule, that in a hard action where there is something on which the jury have raised
“To induce the granting of a new trial there should be strong probable grounds to believe that the merits of the case have not been fully and fairly tried, and that injustice has been done.” See on this subject 2 Graham & "Waterman on New Trials, page 48, where a largo number of cases are collected, illustrating this principle: Also, 2 Black. Com.; 2 Tucker Com. 302.
These rules are laid down with reference to applications made to judges in the inferior courts, who preside at the trial. They apply with much greater force when the appellate jurisdiction is invoked to set aside a verdict approved by the nisi prius judge.
In the present case, the claim is to a ^recovery of of $5,000 of principal money, and more than $2,000 of interest, in a sound currency, upon a loan of $5,000 in depreciated paper of the value of $625, at the date of the loan. What is there in such a claim that should induce this court to interfere in its behalf ? It is the contract we are told. The jury of the viciuage with the paper and both parties before them in explanation of its provisions, their motives and intentions, have said there was no such contract. The judge who heard the evidence, agrees with them. Conceding that an appellatecoui’t has the right to disturb such finding, is it under an imperative duty to do so ? I think not. So thinking I will let the verdict stand.
Much has been said of the inviolability of contracts, and of the duty of enforcing them. All this meets my hearty concurrence. Hot a word has fallen from me at’ any time, in opposition to this doctrine. But I repeat
These are my reasons for refusing a new trial in this case. It will be seen they are in conflict with the opinion delivered at the last term; in which I then expressed my concurrence. Upon mature reflection, I am satisfied the views then entertained are erroneous. If there are any disposed to criticise this change of opinion, I can only answer, that no false pídele shall constrain me to adhere to opinions when convinced they are erroneous. Whatever may be my defects as a judge, to persist in conscious error is not one of them. I eau afford to be right at the expense of consistency; but I cannot afi’ord to he consistent at the expense of my conscience. In this I am fortified by the example and the teaching of great judges, who have not hesitated to retrace their steps taken in a wrong direction. There is one especially, a man of the purest character and the greatest learning who did uot hesitate, on a memorable occasion, publicly to retract the opinions of a lifetime. I allude to Judge Cabell, one of the foremost chancellors of his generation. He was the great representative and advocate of the doctrine of fraud per se, as it was termed. His opinions on this question in various cases, were characterized by the greatest ability and learning. But when the memorable ease of Davis v. Turner, 4 Gratt. 422, 471, was befoi’e this court, in an argument of great length and power, he announced an entire change of opinion. He thus concludes : “ Some of the opinions now expressed, are widely different from those which I
Concurrence Opinion
concurred fully in the opinion of Staples,
J.; and he concurred in the opinion of Anderson, J., except that he did not think that the contract looked to the currency received and paid out by the banks at the date of the contract.
Judgment abbirmed.