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Jameson v. Jameson, Plaintiff in Error

Supreme Court of Missouri1880-10
72 Mo. 640

Summary

Holding. The judgment of the trial court is affirmed. The statute of limitations does not bar a suit on a conditional promise to pay on demand when the contract's express terms contemplate that demand may be made at any time during the payee's lifetime, even if more than ten years pass before demand is actually made.

In November 1859, James Jameson executed a written instrument promising to pay Elizabeth Jameson $600 with interest, conditioned on her demand during her lifetime. If she did not demand payment before her death, the money would remain with Jameson and his heirs. Elizabeth Jameson did not make demand until June 1876, nearly seventeen years later. After Jameson died intestate in August 1875, his estate administrator challenged Elizabeth's claim in probate court, arguing the statute of limitations barred her action because the promise was payable on demand and more than ten years had elapsed since execution without demand being made.

The trial court awarded Elizabeth $1,463.80 (the principal plus accrued interest), and the administrator appealed. The central legal issue was whether the statute of limitations began running from the date of the instrument, making the action time-barred, or whether the conditional nature of the obligation—requiring demand only during the payee's lifetime—tolled the statute.

The court held that although promises payable on demand ordinarily trigger the statute of limitations immediately upon execution, this principle does not apply when the contract itself contemplates and authorizes delay in making demand. Here, the parties plainly intended that Elizabeth could demand payment at any point during her life, and requiring her to demand within ten years would violate the instrument's express purpose. Therefore, the statute of limitations did not bar her claim.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • When does the statute of limitations begin running on a promise payable on demand
  • Whether conditional promises to pay on demand are subject to the same statutory period as unconditional demands
  • Whether delay in demanding payment is contemplated or authorized by the contract's terms

Procedural posture

The case was tried in Shelby County Circuit Court on appeal from probate court, and the defendant administrator appealed the judgment in plaintiff's favor to the state supreme court.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Norton, J.

In July, 1876, plaintiff exhibited in the probate court of Shelby county, against the estate of James Jameson, deceased, of which defendant was administrator, the following demand, viz :

“ One day after date, I promise to pay to Elizabeth Jameson the sum of $600, with interest at the rate of six per cent per annum from the 14th day of October, 1853, as witness my hand this 1st day of November, .1859. The condition of the above obligation is such, that if the above named Elizabeth Jameson shall demand any or all of the above during her natural life, it shall be due and payable according to the tenor of the above; but in case of her death before any or all of the above shall be liquidated, it shall remain with me and my heirs forever as my portion of her estate. "Witness my hand, etc.

“James Jameson.”

Upon the trial in the Shelby county circuit court where the cause had been taken by appeal, judgment was rendered for plaintiff in the sum of $1,463.80, from which defendant has appealed to this court.

From the bill of exceptions it appears that plaintiff admitted that James Jameson died intestate in August, 1875, and that plaintiff had never demanded payment of the sum of money specified in the instrument of writing, or any part thereof, of Jameson, and that no demand for the payment was made until the 3rd day of June, 1876. It was admitted by defendant that the instrument sued on had been given by the deceased to plaintiff for a prior indebtedness, plaintiff being a widow and having resided with decedent, who was her son.

The only question presented by the record is, whether plaintiff’s action is barred by the statute of limitations. It is insisted by defendant’s counsel that it is; 1st, Because the obligation sued upon is a promise to pay money on demand, and the cause of action accrued thereon the day after its date. 2nd, Because if necessary to make demand before the right of action accrued, such demand not having been made within ten years from the date of the in strument, the statutory bar applies. It is well settled that the statute of limitations begins to run against a note payable- on demand from- the time of its execution. Easton v. McAllister, 1 Mo. 662. There is also a class of cases to which we have been cited, of which the case of Palmer v. Palmer, 36 Mich. 487; s. c., 24 Am. 605, is a type, in which it is held that if an act on the part of a creditor, such as demand or notice, be necessary to complete his cause of action, such demand must be made within the statutory period for bringing an action on the contract, and if not made within that period from the date of the contract, the action will be barred. This same class of eases, however, further hold that this principle does not extend nor apply to a case where delay in making the demand is contemplated by the express terms oí the contract, and where a speedy demand would manifestly violate its intent. The obligation sued upon in this case is not an absolute and unconditional promise to pay the sum therein mentioned, but the payment is unequivocally conditioned upon demand made at any time during the life of the payee, and if made within that time, the sum was to be paid, and if ■not so made, it was not to be paid at all, but to be forever retained by the payor. We think it is also clear that it was the evident purpose and intention, both of the payor and payee, that there should be delay in making the demand, and the limit to the delay, as agreed upon by the parties, was the lifetime of the payee. Giving to the contract this construction, and we cannot see how it is susceptible of any other, it does not fall under the operation of the principle announced in either of the classes of cases to whichwe have been cited, and which we have above noted ; and it is, therefore, our opinion that the trial court did not err in holding that the action was not barred by the statute of limitations. Judgment affirmed,

in which all concur, except Henry, J.