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[Sheriff Court at Edinburgh.
In an action in the Sheriff Court to recover the contents of a promissory-note alleged to have been lost while in the custody of a co-obligant, objections to the competency of questions as to
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whether certain witnesses had seen the promissory-note in the pursuer's possession were sustained. Held that the questions had been rightly disallowed as an attempt to prove the tenor of the note incidentally without a separate action, and that such procedure was incompetent where the document attempted to be set up was the basis of the action and there was no relevant averment of casus amissionis.
James Walker, farmer, Dumbarton, pursuer, brought an action against James Y. Nisbet, residing at Currie, Midlothian, defender, for payment of £265, the amount, as averred, of a promissory-note payable by the defender and signed by the pursuer as his cautioner, which sum had been paid by the pursuer on behalf of the defender to the National Bank of Scotland, Limited, Bathgate, on or about 13th February 19U5, and the defender had undertaken in writing to repay.
The following narrative of the facts is taken from the opinion of Lord Salvesen:—“The claim in this case is based on the following averment. The pursuer is brother-in-law of the defender, and he, along with the defender's father and brother, became parties to a promissory-note in May 1901 with the view of providing money to enable the defender to take a farm. The note was renewed from time to time, and the amount increased until in the end of 1904 the ultimate renewal was for a sum of £265. The promissory-note, which was in the hands of the agent of the National Bank of Scotland at Bathgate, bore the signatures of Gavin Nisbet, Robert Nisbet, and the pursuer. At or before the date it fell due the pursuer obtained an undertaking by the defender and his wife to repay this sum, and an undated document which is capable of being so construed, signed by these parties, is produced. On the faith of this undertaking the pursuer and Robert Nisbet borrowed from a Mrs Loudoun a sum sufficient to meet the promissory-note when it fell due on 13th February 1905. The pursuer avers that with this money he paid the bank the amount due and took up the promissory-note which he placed in the custody of Robert Nisbet. There is no written evidence of the existence of the promissory-note except a notice from the bank in these terms—‘Bill for £265 drawn on you by Gavin Nisbet and others falls due at this office on 13th inst. The National Bank of Scotland, Limited, Bathgate, 6th February 1905.” This notice does not appear from its terms to refer to a promissory-note, but is rather descriptive of a bill drawn on the Robert Nisbet to whom it was addressed by Gavin Nisbet and others, but I shall assume in the pursuer's favour that it had reference to the promissory-note to which he depones. The bank books contain no entry of the payment of any such promissory-note. This again is sought to be explained by the fact that the then agent of the bank had entered on a course of conduct in order to conceal certain defalcations which were afterwards ascertained, one of his methods apparently having been to enter as paid obligations constituted by bill which had not been truly paid in cash, and not to enter bills which he had accepted in renewal of others. Thus a previous promissory-note, of which that payable on 13th February 1905 is said to have been a renewal, is marked in the bank books as paid, and there is no entry of the later note. The result is that there is not even an entry in the bank books of the payment of the promissory-note on which the pursuer bases his claim.”
The pursuer pleaded—“(1) The pursuer, an accommodation party to the promissory—note condescended on, having on the faith of defender's obligation paid to the bank the sum in said promissory-note, is entitled to decree as craved, with expenses. (2) The defender having undertaken to the pursuer to pay the said sum contained in said promissory-note, and pursuer having paid said promissory-note on the faith of said undertaking, as condescended on, the pursuer is entitled to decree against the defender therefor. (3) The sum sued for being still due and resting-owing by the defender to the pursuer, decree should pass therefor, with interest and expenses, as craved. (4) In any event and separatim, the defender having obliged himself to pay the pursuer and the deceased Robert Nisbet the sum necessary to retire said promissory-note, and said promissory-note having been retired by them by payment, the pursuer is entitled to decree for one-half of the sum sued for, with expenses.”
The defender pleaded, inter alia—“(7) The pursuer's material averments can be proved only by writ or oath of the defender.
On 3rd October 1913 the Sheriff-Substitute ( Guy) allowed a proof, in the course of which he sustained certain objections to the admissibility of evidence tendered by the pursuer, including questions the purpose of which was to prove that witnesses had seen the promissory-note in question in the pursuer's possession. On 1st December 1913 the Sheriff-Substitute granted leave to the pursuer to appeal to the Sheriff upon these objections, and on 11th December 1913 the Sheriff ( Maconochie) adhered, and remitted to the Sheriff-Substitute for further procedure. On 22nd January 1914 the Sheriff-Substitute found in fact that the pursuer had failed to prove that he made payment on behalf of the defender to the National Bank, Bathgate, of the sum of £265, found in law that the pursuer was not entitled to decree against the defender, and assoilzied him from the conclusions of the action.
The pursuer appealed to the Court of Session, and argued—It was competent for the pursuer to prove the terms of the promissory-note incidentally in the Sheriff Court process. No separate process of proving the tenor was necessary— Young v. Thomson, 1909 S.C. 529, 46 S.L.R. 143. The questions should therefore have been allowed.
Argued for the defender—The questions had been rightly disallowed. Young v. Thomson ( cit. sup.) was not an authority for holding that a separate action of proving
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of the tenor was unnecessary. The note was the foundation of this action and there was no relevant casus amissionis.
The pursuer further proposed to prove by parole evidence that certain people had seen this promissory-note in his possession, obviously that they might speak to its terms. To make such proof competent, as in a proving of the tenor, very specific averments would be necessary, and here there was no such process, and could not be, as a proving of the tenor is only competent in the Court of Session. But on the assumption that an incidental inquiry of this kind might be competent, I have no difficulty in holding that what the pursuer seeks to prove here cannot be reached in such a way. Here the document to which the question related was necessarily the very basis of the action, and calls for a proper setting forth of a casus amissionis entitling the party to lead evidence otherwise not competent as proof.
The case here being that the pursuer desires to have it held that he took up and got into his possession the promissory-note in question, the direct way of meeting this Would be that he should produce it. This he is unable to do. Now it is, I think, plain that in the case of such a document as a bill of exchange or promissory-note very strong reasons would be necessary to induce the Court to allow proof to set up the debt of which, if produced, it might be proof. The case quoted tends to show this. Here the success of the pursuer would depend on his being able to satisfy the Court that it had gone missing in such circumstances that it could be held to be still in force, for the natural presumption, redarguable only by strong proof, is that a bill that cannot be produced is no longer in force. It is a document which if it gets into the hands of an obligant does so because he has met his liability, and he is therefore entitled to destroy the document of debt.
I am unable to hold that in this case there is any proper averment to entitle the pursuer to the concession as regards mode of proof which may be granted in a proper case of casus amissionis. That the pursuer avers that he placed the promissory-note in the custody of another co-obligant, and that on a search it cannot be found, amounts to no more than an assertion of loss, but states nothing relevant as to cause. He in no way accounts for the loss. There is no case of alleged fraud or of accident, such as fire—the averment is the bare averment of loss and nothing else. Nothing is set forth or competently proved to negative the legal presumption that the note may have quite legitimately ceased to exist as an enforceable document of debt.
I do not enter into further detail or an examination of the authorities quoted to us, as this has been done very fully in the opinion of Lord Salvesen, which has my entire concurrence. I would move your Lordships to find in terms of the findings in the Court below and to assoilzie the defender.
The pursuer, however, took exception to the disallowance of other questions which were put, the purpose of which was to prove that witnesses had seen the promissory-note in question in the pursuer's possession, and I presume that if these questions had been allowed the witnesses would have been asked to speak to its terms. I do not think these questions would have been incompetent in a proper action of proving the tenor, assuming that a proof had been allowed on relevant averments. Such an action is not competent in the Sheriff Court; but there are cases where the contents of a writing which is no longer in existence may be proved incidentally without the necessity of bringing an action of proving the tenor. An illustration of this rule is found in the case of Young v. Thomson, 1909 S.C. 529. It is, however, noteworthy that the action there had been commenced in the Court of Session, and that the writ which was allowed to be proved incidentally consisted of entries in a pass-book which ought to have been in the possession of the pursuer but was alleged by him to have been lost. It was further pointed out by Lord Dundas that the missing document was “not of the quality, e.g., of a title-deed, but of a much humbler kind; and is not substantively founded upon as the basis of an action, but pleaded by way of exception to prove the extinction of a debt.” In all these respects the present case is in marked contrast. The pursuer's case depends entirely on his being able to establish that he took up a promissory-note to which he had become a party for the accommodation of the defender, and the best evidence of this would have been the production of the promissory-note itself. Without it he has nothing but parole evidence, and although the two documents I have already referred to might be good adminicles in an action of proving the tenor, no proof would have been allowed in such an action unless a proper casus amissionis had been relevantly averred. This I think follows from a series of cases. Thus in Carson v. M'Micken, May 14, 1811 F.C., in an action of proving the tenor of a bill said to
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Applying the law as laid down in these cases I am clearly of opinion that the pursuer's case fails. His only averment on the subject of the promissory-note is that it was placed by him in the custody of a co-obligant Robert Nisbet, “and although search has been made amongst his papers it has not yet been found.” This does not disclose any proper casus amissionis, and is no better than the averment in Carson's case—that somehow or other the bill had been lost. In the proof no evidence was adduced except that of the widow of Robert Nisbet, which was evidently directed to this point but was entirely negative. She was asked whether she had ever seen the bill in question, but her answer was that she had seen it at the time it was signed but not afterwards; yet it was from her as the custodier of her husband that the only adminicles—the undertaking by the defender and his wife and the notice from the National Bank to which I have already referred—were recovered. The pursuer in his evidence does not refer to the matter, and there was nothing in the ruling of the Sheriff-Substitute which would necessarily exclude evidence on this point. There is therefore nothing to overcome the presumption that the pursuer's promissory-note had been given up because it had been paid or had been deliberately destroyed by the custodier because he did not intend to enforce payment.
Apart from these legal considerations there is nothing in the circumstances disclosed in the proof to predispose one in favour of the pursuer's claim. Eight years were allowed to elapse without any demand on the defender, and in the meantime no inquiry seems to have been made with regard to the existence of the note in Robert Nisbet's hands, although that gentleman died five years ago insolvent. I think it may be reasonably inferred that neither the pursuer nor Robert Nisbet ever intended to make a claim on the defender, and that the present action is accounted for by his having recently succeeded to a little money. All this might not have availed the defender if the pursuer had been able to find the promissory-note, although even then its possession by Robert Nisbet would have raised the presumption that he had paid it and not the pursuer.
As regards this ground of defence, were there no difficulty in the way I think a separate process of proving the tenor could not be dispensed with. In the case of Young v. Thomson, 1909 S.C. 529, where the existence, general tenor, and loss of a pass-book was allowed to be proved incidentally without bringing a separate action of proving the tenor, Lord Dundas said—“The missing document is not of the quality, for instance, of a title-deed, but of a much
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But I am of opinion that there is an insuperable difficulty in the pursuer's way, which would make it useless for him to raise an action of proving the tenor. I agree with Lord Salvesen that in dealing with a document of the nature here averred there is a strong presumption that such a document would be destroyed in ordinary course, and that an averment of casus amissionis which amounts to no more than a bald statement of the fact of loss cannot be admitted to probation. I therefore think that the pursuer's averments on this head, which is the basis of his case, should be held irrelevant, and that no further proof should be allowed.
The Court dismissed the appeal, found in fact and in law in terms of the findings of the Sheriff-Substitute's interlocutor of 22nd January 1914, affirmed the interlocutor appealed against, and of new assoilzied the defender from the conclusions of the action.
Counsel for the Pursuer and Appellant— Christie, K.C.— Graham Robertson. Agents— Cowan & Stewart, W.S.
Counsel for the Defender and Respondent— Gentles— Duffes. Agents— Campbell & Smith, S.S.C.