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Samuel H. Seager & another vs. F. Otis Drayton

Massachusetts Supreme Judicial Court1914-05-21
217 Mass. 571

Summary

Holding. The appellate court upheld the trial judge's finding that the note lacked valid consideration and overruled the plaintiffs' exceptions to the judge's refusal to direct a verdict in their favor. The judgment for the defendant was affirmed.

The plaintiffs sued on a promissory note signed by the defendant. The defendant had issued the note to the plaintiffs after their original creditor (the defendant's employer Wright) failed to pay on an earlier note. The plaintiffs argued the new note had valid consideration because they forbore from suing Wright, because the defendant's note substituted for Wright's note in a novation, or because the note was given as security for Wright's debt. The trial judge found for the defendant, concluding the note lacked consideration.

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

Key issues

  • Whether a promissory note has valid consideration when given in renewal of a prior note
  • Whether forbearance to sue an original debtor constitutes consideration for a third party's substitute note
  • Whether a note given by one party in substitution for another's note constitutes a novation with valid consideration
  • Standard of appellate review for factual findings by a trial judge in a non-jury case

Procedural posture

The plaintiffs appealed by bill of exceptions from a judgment entered by the Superior Court in favor of the defendant on the merits of an action on a promissory note.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Crosby, J.

This is an action upon a promissory note, signed by the defendant and delivered to the plaintiffs, which had been given in renewal of a previous note of the defendant upon the maturity of the latter, at which time the defendant made a partial payment thereon and gave the note sued on for the balance. The defendant contends that the note is without consideration. The case was tried without a jury by a judge of the Superior Court, who found for the defendant. The plaintiff requested the judge to rule “that upon all the evidence.a verdict should be rendered for the plaintiff.” This was refused, and the plaintiff excepted.

The evidence shows that the defendant’s employer, Wright, owed the plaintiffs an account for hay and grain furnished by them to Wright; that Wright gave them a note in part payment of the account; and that upon the maturity of the, note, Wright failing to pay it and the plaintiffs having refused to renew it, the defendant, at the request of the plaintiff Loring, gave to the plaintiffs his (the defendant’s) note for the amount due upon the note given by Wright. The defendant testified that when he delivered the first note to the plaintiff Loring, the latter said “that he had to show his partner something, and if he had my note he would be perfectly satisfied.” It is the contention of the plaintiff that there was a valid consideration for the note (1) because of the forbearance of the plaintiffs to sue Wright; (2) because the defendant’s note was given in substitution for the note given by Wright and thereby constituted a novation; and (3) because the note of the defendant was given to the plaintiffs as creditors of the debtor Wright in payment of, or as security for, the debt due from Wright to the plaintiffs. If the plaintiffs’ proof was sufficient to establish either of these contentions, they would be entitled to recover. Boyd v. Freize, 5 Gray, 553. Manter v. Churchill, 127 Mass. 31, 33. Neal v. Wilson, 213 Mass. 336. As the defendant denied that there was a consideration for the note, the burden of proof was on the plaintiffs. Lombard v. Bryne, 194 Mass. 236.

F. D. Sawin, for the plaintiffs.

A. P. Teele, for the defendant, submitted a brief.

Whether there was a valid consideration for the note was a question of fact for the trial judge to determine upon the evidence presented and the reasonable inferences to be drawn therefrom. This court has no power upon a bill of exceptions to revise or set aside a finding of the judge before whom the case was tried without a jury, although the bill of exceptions states all the evidence, provided there was any evidence to support the finding. Edmundson v. Bric, 136 Mass. 189. Bill v. Stewart, 156 Mass. 508. If the note upon which this action is brought was given in renewal of a previous note of the defendant which was without consideration, then it also is without consideration. Widger v. Baxter, 190 Mass. 130. Holden v. Cosgrove, 12 Gray, 216.

We discover no error of law in the refusal of the court to rule as requested by the plaintiffs. Accordingly the entry must be

Exceptions overruled.

McLaughlin, J.