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The Marietta Savings Bank vs. Janes

Supreme Court of Georgia1881-02
66 Ga. 286

Summary

Holding. The court affirmed the judgment for the defendant, holding that the promissory note and Waddell's letter together formed one contract under which Janes would not be held individually liable, and the agreement to refrain from pursuing Janes personally constituted a covenant never to sue that operated as a release.

The Marietta Savings Bank sued C. G. Janes on a promissory note for $1,073.20 that Janes, as administrator of his father's estate, had given to J. D. Waddell. Janes defended by presenting a letter from Waddell promising that the note would not bind him personally and that Waddell would look only to the estate for repayment. The bank had originally sued Janes in his representative capacity but struck those allegations and proceeded against him individually instead.

The court held that the letter and the promissory note together formed a single, integrated contract. Because both documents must be read together, the court determined that the parties had agreed Janes would not be held personally liable. The agreement amounted to a covenant never to sue Janes individually, which operated as a release. An administrator had the legal authority to renew an old debt against the estate, and by striking the representative language from its complaint, the bank assumed the risk that the estate might be insolvent.

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

Key issues

  • Whether parol and written evidence may be combined to establish the complete contract between parties
  • Whether an agreement not to hold an administrator personally liable constitutes a release
  • Whether striking representative language from a complaint affects the legal defenses available to the defendant

Procedural posture

The trial court directed a verdict in favor of the defendant, and the defendant's motion for a new trial was overruled; the bank appealed that denial.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

JACKSON, Chief Justice.

This action was brought by the Marietta Savings Bank against C. G. Janes, to recover the sum due on a promissory note made by Janes as administrator on his father’s estate. As originally brought, it sought to charge him as-administrator, but the words charging him in that character were stricken by the plaintiff, and it proceeded against him individually. Janes pleaded that he gave the note sued on merely to renew a note his father had given Waddell, and on the promise by letter of Waddell that he would not hold Janes personally liable, but only go against the estate for the money. * The letter is as follows :

“Marietta, Ga„ April 18th, 1877.

My Dear Charles: Your letter of the nth instant is received,, and its contents give me satisfaction. Send me your note as administrator of your father’s estate, and it shall never in any way or manner prejudice you individually. I am surprised to infer from your intimation that the estate is so much embarrassed.

Yours ever truly, J. D. WADDELL.”

Thereupon the note sued on was enclosed in a letter to Waddell, and is in these words:

“ One day after date, as administrator of W. F. Janes, deceased, I promise to pay J. D. Waddell or bearer, one thousand and seventy-three dollars and twenty cents, for value received, this May the 8th, 1877. C. G. Janes, as administrator of W. F. Janes, deceased.”

Waddell transferred the note to the plaintiff after due.

Under charge of the court the jury found for the defendant, and a motion was made for a new trial on various grounds, the effect of which when analyzed is that the note could not be varied by the letter, and that the legal effect of the note as written is to bind the defendant individually.

We think that th.e letter was properly admitted. It is part of the contract. Even if it had rested in parol with no writing, it might have been admitted to show the entire contract, all of it not being expressed in the promissory note. Code, §2757, 54 Ga., 527; 59 Ib., 562. But it is not necessary in this case to go to that length. The entire contract here is in writing, though the writing is on two pieces of paper. It takes both writings to make the real contract of the parties, and the legal effect is the same as if one paper held the contents of the note and of the letter. Code, §3801. Construing them as one, the stipulation is not, under any circumstances, to hold the defendant individually liable, but to look only to the estate of his father. From the explanatory testimony as to the circumstances under which the note was "given, it is clear that it was simply to renew a debt not barred in the lifetime of the intestate, but growing old and in danger of being barred.

The letters of defendant to Waddell were lost by the latter, and the parol proof was clearly admissible for this reason if for no other

An administrator may renew such a debt and charge the estate. Code, §2542. This is the legal effect of the contract, and if the plaintiff saw fit to strike from the declaration the representative character of the defendant, he exercises a legal right, but must take the consequences of that amendment. If the estate should be insolvent, it is his misfortune, and he is in no worse condition than he would have been had he sued on the old debt before the statute would have barred him.

This bargain is not to hold the defendant liable personally. It is equivalent to a promise not to sue him individually. He is to be prejudiced in no way. The agreement is equivalent to a covenant never to sue, and that operates as a release. Code, §2861; 48 Ga., 631 ; 57 Ga., 140. The plaintiff received the note after due, and holds it subject to all defences against Waddell.

The charge of the court and the verdict of the jury are therefore clearly right, and the motion for new trial was properly overruled.

Judgment affirmed.