Shapley v. AbbottShapley v. Abbott
- Reporters:
- Before:
- Earl
To support such a promise, on either ground, would be contrary to the policy of the statute, the object of which is to prevent fraud and perjury.
(Argued March 30th, 1870; decided June 23d, 1870.)
APPEAL from a judgment entered upon the decision of the General Term of the Supreme Court in the sixth judicial district, reversing a judgment of the Madison County Court, by which the judgment rendered in a Justice’s Court, on a verdict in favor of the plaintiff, was reversed.
This action was commenced in Justice’s Court, upon a due bill, dated February 17th, 1853. The defence was the statute of limitations. The action was not commenced until more than six years after the cause of action accrued. There had been no payment, nor promise in writing, whereby the same was taken out of the operation of the statute. The plaintiff, to avoid the statute of limitations, alleged in his
Samuel D. White, for the appellant, insisted that section 110 of the Code applied, citing 31 N. Y., 289; 43 Barb., 198; 32 id., 251; 4 Seld., 368; 11 Wheat., 309; and, as to the construction of the English statute, Dickinson v. Hatfield (5 Carr. & P., 45); Hayden v. Williams (7 Bing., 163). That the facts do not constitute a waiver, or an estoppel in pais, he cited Kneettle v. Newcomb (31 Barb., 169); 22 N. Y., 249; Crawford v. Lockwood (9 How., 547); Harper v. Leal (10 id., 282); Packard v. Sears (6 Adol. & Ell., 469); 2 Smith’s Lead. Cas., 511, 531; 3 Hill, 216; Stedman v. Duhamel (1 C. B., 50 E. C. L., 888); Warren v. Walker (10 Shep., 23 Me., 453); Eggleston v. Harlem R. R. (35 Barb., 162, 173).
Charles Mason, for the respondent, on the question of estoppel, cited Gaylord v. Van Loan (15 Wend., 308); Bloodgood v. Utica Ins. Co. (4 Wend., 652); Warren v. Walker (10 Shep., 453); Wilber v. Pres. of Williams Coll. 23 Pick., 302); Brookman v. Metcalf (4 Rob., 568); Strong v. Ellsworth (26 Vt., 366); Kinney v. Farnsworth (17 Conn., 355); Roe v. Jerome (18 Conn., 138); Dyer v. Cady (20 Conn., 563); Dezell v. Odell (3 Hill, 219); 2 Exch., 653; Hall v. White (3 Carr. & P., 242); Mordecai v. Oliver (3 Hawk., 479); Trustees v. Williams (9 Wend., 147); Welland Canal v. Hathaway (8 Wend., 483); Eyro v. Lambly (2 Esp. R., 635); Ford v. Williams (24 N. Y., 359, 365); Harris v. Merchant (Curtis C. C., 144); 26 Vt., 373; 30 N. Y., 226; Bank of Genesee v. Patchin Bk. (3 Kern., 316); Mason v. Anthony (3 Keyes, 609); Ferguson v. Hamilton (35 Barb., 427); 26 Barb., 611; 17 How., 569; 4 Barb., 495; 10 Paige, 326; 7 Paige, 68; Roberts on Frauds, 2d Am. ed., 135, 138; Willard’s Eq., 283; 14 John., 15, 35, 36; 1 John. Ch., 149; 3 Barb., Ch. R., 413.
EARL, Ch. J. The note bears date February 17, 1853. The plaintiff was sworn on the trial, and the following is his evidence, so far as it is material here: “I had a conversation with defendant in the month of September, 1858; a short time before that I had received a line from defendant, asking me to pay the costs in the Nye matter; they were Abbott & Moore’s costs; they defended a suit for me; I came up to his office to see him; he was not there; I then went to his house and found him; I told him I came up to settle the matter of those costs, and offered to pay the balance of them after deducting this note; I told him the note would outlaw soon, and something must be done about it; that I had waited on him for most six years; he told me if the note did outlaw he would not plead the statute of limitations on it; that I might rest assured of it; I told him that I had waited on the settlement of matters nearly six years; I was pressing him to pay the note, and told him when he did I would pay the Nye matter; this was the only note I had against defendant at the time; defendant refused to apply the note in payment of the Nye costs, because, he said, the costs were Abbott & Moore’s, and the note was his individual matter; if defendant had not made this promise or agreement not to plead the statute I should not have let this note run more than six years without suing it; I should have sued it within six years after its maturity if it had not been for that agreement; I let the note outlaw because of defendant’s agreement.” The defendant was also sworn, and positively denied the agreement not to plead the statute, and yet, for the purpose of this appeal, the facts testified to by the plaintiff must be taken as true. The only question for us to consider is,
Prior to the Code, what took place between the parties in September, 1858, would have been sufficient to take the note out of the operation of the statute of limitations. It would only have been necessary for the plaintiff to show an unconditional acknowledgment of the existence of the debt; and this could have been shown by proof of a direct acknowledgment, or by proof of facts from which it could be properly inferred. (Angell on Lim., § 208, etc.; Dean v. Hewit, 5 Wend., 257; McCrea v. Purmort, 16 id., 460, 477; Henry v. Root, 33 N. Y., 526; Cocks v. Weeks, 7 Hill, 45; 1 Greenl. Ev., § 197.) In the case of McCrea v. Purmort, COWEN, J., says: “The admission of a debt is available to take it out of the statute of limitations, whether that admission be express or tacit, and it may be implied from the conduct of the party.” Here the plaintiff went to the defendant with this note, in substance claiming the whole of it to be due, and requested him to allow the amount of it upon the bill of Abbott & Moore’s costs. The defendant refused thus to allow it, not in any way denying his liability upon it, not upon the ground that the amount of it was not due as claimed, but upon the sole ground that the costs belonged to him and Moore jointly, while the note was his individual debt; and when plaintiff pressed him to arrange the note as suggested, on the ground that it would soon outlaw, instead of denying his liability in any way, he said to the plaintiff that he might rest assured that he would not plead the statute of limitations if it did outlaw. It seems to me that this language, without anything to qualify it or weaken its force, furnishes very conclusive proof of an acknowledgment of the debt. When the holder of a note presents it to the maker and requests payment, upon the ground that it is about to outlaw, and the maker, without in any way denying his liability, says that he will not plead the statute of limitations if it should be permitted to run, I think such a declaration is, under the circumstances, of itself suffi-
The acknowledgment, then, proved in this case, would have been sufficient to take this note out of the statute of limitations, if it had not been for section 110 of the Code, which provides 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 title, unless the same be contained in some writing signed by the party to be charged thereby.” The only effect of this section is to require that to be proved by writing which could before be proved by parol. (Hayden v. Williams, 7 Bing. R., 163.) Hence, if the plaintiff relied upon what the defendant said in September, 1858, as an acknowledgment to take the note out of the statute, he would fail simply because it was not in writing. If he relied upon what the defendant then said as an agreement not to plead the statute, he would fail, if for no other reason, because there was no consideration for the agreement. He did not agree with the defendant that he would wait and permit the note to outlaw. Neither could he rely upon what then took place as a waiver by the defendant of the statute of limitations, because there was no consideration to uphold the waiver. The defendant did not then have the right to plead the statute, and this was at most a mere promise to waive it. (Crawford v. Lockwood, 9 How., 547.) The only ground, therefore, the plaintiff has to stand on is, that the defendant is estopped by what he said from pleading and availing himself of the statute; and whether the doctrine of equitable estoppel in pais is applicable to a case of this kind, under the law as it now is, is the only question in this case remaining to be considered.
Now, what is an equitable estoppel in pais, as generally understood and applied in the courts? It is used to preclude a party from maintaining, by evidence, that which he has before expressly or tacitly denied, or disproving that which he has before expressly or tacitly admitted, when the other party has
I have cited these cases from a great many, simply to show the language used, with great uniformity, by the courts in reference to estoppels in pais. With the exception of a few cases, which I will soon notice, my attention has been called to cases only where this doctrine was applied to conclude parties who had expressly or impliedly admitted or denied certain facts; and to no cases where a party had only promised something for the future, when the facts were equally known to both parties. In this case the fact that the note would outlaw was equally known to both parties. The plaintiff
Our attention has been called to the cases where it has been held that a party may be prevented by estoppel from availing himself of the defence of usury. (Ferguson v. Hamilton, 35 Barb., 427; Chamberlain v. Townsend, 26 id., 611; The Merchants’ Bank of Brooklyn v. Townsend, 17 How. Pr., 569; Mason v. Anthony, 3 Keyes, 609.) In all these cases there was the representation of a fact, to wit, that there was no usury, to a party ignorant of the truth and who relied upon the representation. But suppose the representation had been made to a party who knew of the usury, or
In the cases of Crawford v. Lockwood (9 How. Pr., 547), Knettle v. Newcomb (31 Barb., 169), and same case (22 N. Y., 249), it was held that a waiver, in writing, of the benefit of the statute of exemptions, made at the time the credit was given, did not estop the party from claiming the protection of the statute, although he obtained the credit from the other party by his reliance upon this waiver. In the first two cases, the decisions were placed upon the ground that the doctrine of estoppel did not apply, as there was no representation of a fact by the one party which was unknown to the other party, and upon which he relied. In the last case, the decision was put upon the broad ground of public policy; and it was held, in substance, that the agreement to waive the benefit of the statute of exemptions could not operate in any way, either as a waiver, or as an agreement, or by way of estoppel, for the reason that it would subvert the policy of the law. The same reason will apply to this case. The policy of the statute, requiring that every promise or acknowledgment, to take a case out of the statute, shall be in writing, signed by the party to be charged, is to prevent fraud and perjuries. And it is the duty of courts so to administer the law as to uphold this policy. If a parol promise not to plead the statute is to be held operative, either as a waiver, or an agreement, or by way of estoppel, to subvert the statute, then all the mischief, as this case shows, will be let in which it was the policy of the law to shut out.
The statute of frauds requires certain contracts to be in writing. Can a party be deprived of the benefit and protection of this statute by any parol waiver, agreement or estoppel? Suppose a seller of real estate should agree with the purchaser that it need not be reduced to writing, and that he would not plead the statute of frauds; would he be estopped, when sued upon the contract of sale, from setting up the statute as a defence? No case can be found asserting such a doctrine. Courts of equity, not courts of law, will
A party may, undoubtedly, without trenching upon public policy, waive the defence of usury, or of the statute of frauds, or of the statute of limitations, by omitting to set up the defence when sued. And he may waive his statute exemption by turning out exempt property when the officer comes with the execution; but no case has occurred to me in which a party can, in advance, make a valid promise that a statute founded in public policy shall be inoperative.
There are a few cases which seem to be in conflict with the conclusion I have reached as to the statute of limitations. In Warren v. Walker (23 Maine, 453), there was, at the bottom of a bill, the following memorandum, signed by the defend- ant: “I hereby waive all defence which I might otherwise
I am therefore in favor of reversing the judgment of the General Term, and affirming that of the County Court, with costs.
SUTHERLAND, J. Assume that the appellant’s promise, agreement or statement, whichever you choose to call it, that he would not plead the statute of limitations, might have been regarded as an express promise to pay the debt, or as an acknowledgment of the debt as subsisting, from which a promise to pay might have been implied before the Code; or assuming that, had such promise, agreement or statement been in writing, it would have been sufficient evidence of a new or continuing contract, within section 110 of the Code; that the respondent cannot use the promise, agreement or statement as an estoppel, or by way of estoppel, is not a sequence of either assumption.
True, the promise could not be actually used both ways in the same case; but what I mean is, that it does not follow that it cannot be used or received as an estoppel, because, had it been in writing, it would, or might have been, sufficient evidence of a new or continuing contract, within section 110 of the Code.
But the promise was not in writing, and therefore could not be used by the respondent under section 110 of the Code; and the question is, whether it could be used by him by way of estoppel.
I think, clearly not. If it estops the appellant, what does it estop him from? Why, from effectually pleading the statute of limitations. Nothing more, or less, or other. Now, one may waive, or lay aside, the protection or benefit which his position gives him the right to claim under a statute; that is, one owing a usurious or outlawed debt may pay it, or he may, I assume, by his conduct or words estop himself from proving that the debt is outlawed, or is usurious; but
Blackstone says (3 Com., 308), that an estoppel may be a “special plea in bar, which happens where a man has done some act, or executed some deed, which estops or precludes him from averring anything to the contrary.” That is, applying what Blackstone says to this case, the plaintiff and respondent might have pleaded in bar of the defendant’s plea of the statute of limitations, that he had done some act or executed some deed which estopped him from effectually pleading the statute; that is, from proving that the statute had attached.
One by his conduct, by act, or words, may estop himself from proving or showing that a different state of things, or of facts, existed than he misrepresented or induced another party to believe existed at the time of his misrepresentation or act.
The defendant’s promise or statement in this case, which ever you call it, has none of the elements or features of an estoppel. It is a promise or agreement not to do a thing in the future. Call it a statement, and it cannot be tortured into being an act of estoppel, within the meaning of the doctrine of estoppel, or within any authoritative precedents of the application of that doctrine.
The defendant’s promise or statement was in words, of course; but it would be absurd to call it a representation or statement of, or as to, any past or then present fact or state of things. There was no representation or deception as to any then existing state of things; indeed, no representation at all. No pretence on the part of the plaintiff of ignorance of any fact known to the defendant.
If the plaintiff has been deceived or injured, he has been deceived and injured by the defendant’s pleading the statute
Will it be pretended, that a promise not to plead or set up usury, or infancy, or coverture, whether in the note evidencing the debt, or outside of it, would estop or preclude the promisor from effectually pleading and proving the usury, or infancy, or coverture? Nay, further, if the defendant is estopped by his promise not to plead or avail himself of the statute of limitations, why is not the giver of every note for a usurious loan estopped, by the note, from pleading and proving the usurious agreement? Certainly, it may be said, that the party making the loan and taking the note relied upon the promisor’s keeping his promise and paying the note; and certainly the note implies a promise not to plead or take advantage of the law against usury.
The substance of all that has been said by me in this case, if not said by Judge SELDEN, was implied in, or follows from what he did say, in Crawford v. Lockwood (9 How. Pr. R., 550, 551); and whatever there be in the opinions in Gaylord v. Van Loan (15 Wend., 308), and The Utica Ins. Co. v. Bloodgood (4 Wend., 652), inconsistent with what was said by Judge SELDEN on this question of estoppel in Crawford v. Lockwood, should be regarded as not good law. (See also Kneettle v. Newcomb, 31 Barb., 169.)
The affirmance of the judgment in the last cited case (22 N. Y., 249), on the ground upon which a majority of the court affirmed it, was no way inconsistent with the views expressed by Judge SELDEN in Crawford v. Lockwood, supra, and who was for affirming the judgment in Kneettle v. Newcomb, for the reasons stated by him in Crawford v. Lockwood.
The judgment of the Supreme Court, reversing the judgment of the County Court, should be reversed.
All concur for reversal.
NOTE.—Where, at the adoption of the Code, a right of action upon promissory notes had accrued, and had not then been barred, section 110 of the Code is not applicable. So held in Lansing v. Blair, October, 1870. Court of Appeals. [REP.]