Page: 212↓
Subject_Bill of Exchange—Sexennial Prescription—Proof.—
A party accepted a bill to one who afterwards, as factor of the acceptor, intromitted with rents—held, in an action against the factor's representative to count and reckon for these rents after the bill was prescribed, that the defender was entitled to instruct by competent evidence that the bill was paid from the rents so intromitted with.
The late George Balvaird raised an action before the Sheriff of Edinburgh against Mrs Thomson, the widow and representative of his brother-in-law, Robert Thomson, concluding for count and reckoning for his intromissions with the rents of certain houses. In defence, Mrs Thomson alleged that Balvaird had accepted a bill in January 1812 to Thomson for £87, 7s. 6d., which had been paid out of the rents intromitted with, and, therefore, that she was not liable to account for the rents to this extent. Balvaird pleaded, that the bill being prescribed could not be founded on. The facts, as appearing from the mutual statements, were these:—Balvaird and Thomson had signed a bond along with David Thomson, in 1805, for a cash-credit obtained from Sir William Forbes and Co., in which (it was said) they were merely cautioners; and on the 23d of January, 1812, Thomson made up and sent to Balvaird an account, bearing to be “State of the balance due by Mr George Balvaird to Mr Robert Thomson, on their conjunct bond with Mr David Thomson, late merchant in Edinburgh, to Sir William Forbes and Company, bankers in Edinburgh, of date 3d September, 1805.”
The account showed a loss of £194, 1s. 8d. sustained on the bond, and contained the following items:—
“To your half of this balance, … £97 0 10
By cash, as part of this sum, per order on Mr Black, 9 13 0
Balance due R. T. of this date, . . 87 7 10”
A letter was subjoined in these terms:—“My dear George,—Prefixed I send you a state of the balance due on our conjunct bond with my brother, which I hope you will find right; and have also enclosed a note for your acceptance for the balance. But although 1 have done this, I never mean to give you any trouble about the payment of it. My only reason for doing so is, that Mr Balvaird, an uncle of George's, of whom Thomson was tenant, has hinted that if I do not make a considerable advance of rent for the house, he will not give even the most trifling repair, but I am apprehensive will endeavour to make me leave it. Now, if it be considered that he was the person who made you sign the bond, it is rather illiberal on his part not to see you relieved. I hope, however, that you
“Amount of your promissory-note to R. Thomson, dated 23d January, 1812, with interest thereon to 25th May, 1825, …. £167 11 1”
This was the last item in the account.
Under these circumstances, and with reference to the defence, the Sheriff found “that the deceased Robert Thomson, when he sent the bill, dated 23d January, 1812, for the pursuer's acceptance, did at the same time write the pursuer a letter, stating that he never meant to give the pursuer any trouble about the payment of it; that his only reason for sending the bill for the pursuer's acceptance was on account of hints from the late Mr Balvaird, as to advancing the rent payable by the deceased, and that, although he (the deceased), held the bill, it was merely meant as a check, in case Mr Balvaird should give him trouble about his rents; farther, found, that in the different accounts rendered by the deceased to the pursuer, no charge is made against the pursuer for the said bill, or the annual interest thereon, and that the said bill and interest is only charged in the account, November, 1825, found in the deceased's repositories after his death: Found, that, by the deceased's letter, 23d January, 1812, transmitting the bill for the pursuer's acceptance, he was barred from bringing forward any claim on said bill against the pursuer or his wife: and found the defender not entitled to insist in any claim arising from said bill.” And he refused a reclaiming petition, “reserving to the defender to instruct, by the writ or oath of the pursuer, that the defender's claim for £87, 7s. l0d. is resting owing.” He afterwards decerned against the defender, disallowing her credit for the bill or for the debt of £87, 7s. l0d. to which it referred. Balvaird having died during the currency of the action, his widow was sisted in his place as his representative; and Mrs Thomson brought an advocation, in which the Lord
Mrs Balvaird reclaimed.
The Court, without hearing counsel in support of the interlocutor, adhered.
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* “ Note—This case does not appear to the Lord Ordinary in the light in which it is viewed by the Sheriff. It is not a claim at the instance of Balvaird's representatives against Thomson's representatives, in which the defenders plead compensation on a prescribed bill: it is an action of count and reckoning, founded on Thomson's intromissions with the rents of certain houses, which belonged at one time to George Balvaird, senior, the uncle of George Balvaird, junior, the acceptor of the bill; and the plea is, that, when the nephew succeeded to the uncle, the bill was paid, Thomson having applied the rents which he intromitted with to its extinction; and for this application accordingly he took credit in his account, prepared by himself, and found in his repositories at the time of his death. Mrs Thomson, the advocator, therefore, cannot now be required to prove that the bill la resting owing by the writ or oath of the respondent, when her plea is, that it is not resting owing, but long ago paid by an application of rents in her husband's hand, which, as factor, she maintains he was entitled to make, and did make. The proper issue therefore is, Whether Thomson's application of the rents to that purpose was justifiable; and if it was not, then perhaps the advocator might have been driven to found on the bill as unpaid, and merely as a ground of compensation: But she justifies the application of the rents, not only by production of the bill, but by referring to a cautionary obligation, in which her husband and George Balvaird were co-obligants, and which she asserts was paid by her husband. If it turn out, on an investigation, that Thomson and Balvaird were equally liable as cautioners, and that Thomson exclusively settled the claim, (which last fact, indeed, seems not to be disputed,) the advocator is entitled to take credit for the contents of the bill. It must be kept in view, that she does not found on the bill as the sole voucher of the debt—indeed, it is not mentioned or alluded to in her defence—but on the account of discharge found in her husband's repositories; and although the bill should be laid out of view entirely, that account may be competently vouched aliunde.
“A letter is produced from Thomson to Balvaird, written at the time the bill was accepted, in which Thomson says, that he is not to exact payment from Balvaird the acceptor, if he gets credit for the contents from his uncle Balvaird, senior, who was at that time proprietor of the houses, the rents of which Thomson intromitted with as factor. This at least seems to be the fair import of the letter. But some time afterwards, Balvaird, the nephew, succeeded to the property of the houses, on the death of his uncle, and then Thomson, in perfect consistency with his letter, placed the contents of the bill to the debit of Balvaird, junior.”
in accounting for the rents of the houses. I do not see how it is possible to prevent her from doing this if she can.
The other Judges concurred.
Solicitors: Walker, Richardson, and Melville, W. S.— J. B. Stoddart, W. S.—Agents.