Dade v. Irwin

*389 Mr. Justice STORY delivered the opinion of the court.

This is an appeal from the Circuit Court of the District of Columbia, sitting in Alexandria.

In the year 1824, the appellant, Jane Dade, became indebted to Thomas Irwin, the testator, and executed two deeds of trust for the security of the debt. At the November term of the Circuit Court of Alexandria county, 1830, Irwin, the executor, filed his bill to obtain' a decree of the sale of the estate so cónveyed'in' trust' and a decree was made without objection for the sale, the appellant admitting the justice of the claim; and the'original trustee having become insane, William L. Hodgson was appointed trustee’to make the sale. After sundry delays, the trustee advertised the estate for salé on the 28th of November, 1834; and on the day preceding the intended sale the present bill was filed by the appellant for an injunction against the sale, ' The bill made no objection to the original debt"or decree, but simply set up a claim, by Way of set-off or discount, of a totally’ distinct nature, and unconnected with the original debt, as due by the testator, to her, and for which she alleged in her bill that she ought to receive a credit, to which in equity and strict justice she was-entitled. The claim thus-set up had its-origin in this manner. In May, 1821, James Irwin gave his note for’ $826 63 to John Adam or order, for Mrs. Dade, for money borrowed of her, which note was endorsed by Adam, and on the-same d'ay James Irwin, as collateral security therefor, assigned-to Adam a debt due to him by AIexánder Henderson for cordage sold him by Thomas Irwin'(the testator) as his agent, and for which tlie assignment alleged Thomas Irwin washable, having received Henderson’s note without the consent of James-Irwin. Upon the back of this assignment there now purports to be the following endorsement,' “ If the within debt cannot be recovered' from Alexander Henderson, I am liable for tire same, provided full time be allowed for the prosecution of the suit.” The supposed note-referred to in the assignment was_ dated-in January, 1804, and was for the payment of $901 -83 to the order of Thomas Irwinj and was signed by Alexander Henderson and Co. . This note the bill alleged to include the debt due to James Irwin. Judgment was obtained upon this note in 1805. Afterwards HendersOu, in 1806, became insolvent, and in 1816 a bill in equity was filed for the satisfaction of the judgment out of supposed effects in the hands of certain; garnishees, which suit was not finally disposed of until October, 1835, and Wa3 then.abated by Hendérson’s death.

*390 The answer to the present bill by Thomas- Irwin, the executor, denied the' whole equity thereof. It denied that- James Irwin ever executed the supposed assignment. But he admitted the origin of the. debt due by Henderson and Co.; and that the note taken by the testator-included it ;• but that Henderson having become insolvent he was not liable for that amount, and charged it in his accounts against James Irwin and Co. He also denied the-supposed endorsement oh the assignment to. be genuine, but alleged the same to be a sheer fabrication.

■The injunction prayed for by the bill was granted, -and afterwards the cohrt directed an issue to be tried, by a jury to ascertain whether the testator’s signature to the endorsement was genuine or not. That issue was tried by. a jury, who were unable to agree upon a verdict. The order for an issue was then-rescinded, and .the cause came on for a final hearing in 1839, when the bill was dismissed with costs. There is a great deal of evidence' on both sides as to the genuineness of the signature of the -testator, and also as to the appearance of the ink'of the endorsement being that -of recent’writing. It is also remarkable that in the long interval bétween thé time when the deed of trust was- given in 1824, and -the time when the sale was advertised and the - bill filed, no demand was ever suggested, by or on behalf of Mrs. Dade for the present supposed debt due her as a set-off or otherwise. On the contrary, although repeated and earnest .applications were made for delay of the sale, from the time of the decree in, 1830 until the advertisement in 1834, and some correspondence took-place on -the subject, no allusion whatsoever was made to any such supposed claim or set-off'; but an entire silenee existed on the subject. It is also somewhat singular, that when the bill upon the trust deed was.filed and the decree therein obtained, no suggestion was made by Mrs. Dade in-answer thereto of this supposed claim, not any postponement of the .decree of sale asked upon this account."

- Now, upon this posture of the case, several objections arise as to the maintenance, of the suit... In the first place, the present bill is of an entirely- novel character, Jt is .not- a. bill of’review, or in-the nature of a .bill pf review, founded upon any mistake of facts, or the discovery of any new evidence. It admits in the most unambiguous terms that the decree was right. - Then, it-'sets up merely a cross-claim or set-off of a debt arising under wholly independent and unconnected transactions.- Now it is clear that courts of equity do not act upon the subject of- set-off in respect to distinct and uricon *391 connected debts, unless some other peculiar equity has intervened, calling for relief; Us, for example, in cases where there has been a mutual credit given by each upon the footing of the debt of the other, so that a just presumption arises that the one is understood by the parties to go in liquidation or set-off of the other.

(a)

'In the next place, the remedy for Mrs. Dade, if any such debt as she has alleged exists, is at law against the executor; aqd there is no suggestion that the estate of the testator is insolvent, and that his assets cannot be reached at law. So that the bill steers aside of the assertion.of any equity upon the foundation of which it can rest for its support.

In the next place, the nature and character of the claim itself, now for the first time made, long after the decease of both the Irwins, and thirteen years at least..after its supposed origin. . To.put the case in the least unfavourable light, it is A matter of grave doubt whether the endorsement of the testator’s name on .the assignment is genuine or not. That very doubt would be sufficient to justify this court in affirming the decree of the court below, and leaving Mrs. Dade to her remedy at law, if any she have. But connecting this with such a protracted silence for thirteen years, without presenting or makiñg any application for the recognition or allowance of the claim.to the testator or his executor,.it is impossible not to feel that the merits of the claim at such a distance of time can scarcely be made out in favour of the appellant. It is stale, arid clouded with presumptions unfavourable ti> its original foundation, or present validity. Besides, in cases of this sort, in the examination and weighing of- matters of fact, a. court of equity performs the like functions -as a jury; and we should not incline, as an appellate court, to review the decision to which the court below arrived, unless under circumstances of a peculiar and urgent nature.

The decree of the Circuit Court is, therefore, affirmed with costs.

ORDER.

This cause came on to be heard on the transcript of. the record from the Circuit Court of the United States for the District of Columbia, holden in. and for the county of Alexandria, and was argued by counsel. On consideration whereof, It is now here ordered am decreed by this court, that the decree of the said Cirouit Court in this cause be, and the same is hereby affirmed with costs.

(a)

See 2 Story Eq. Jurisp. §§ 1435, 1436.