Woodburn v. Woodburn

• Decision Date: 25 January 1886
• Parties: WOODBURN v. WOODBURN.
• Court: Illinois Supreme Court

115 Ill. 427

5 N.E. 82

WOODBURN

v.WOODBURN.

Supreme Court of Illinois.

Filed January 25, 1886.

Appeal from appellate court, Second district.

C. C. & C. J. Johnson, for appellant.

J. & J. Dinsmoor, for appellee.

CRAIG, J.

Peter Ege, executor of the estate of George W. Woodburn, deceased, held four promissory notes against James H. Woodburn, all dated March 14, 1873: one for the sum of $2,000, due in one year; one for $2,000, due in two years; one for $2,376.50, due in two years; and the other for the sum of $2,376.50, due in one year. The notes all drew interest at the rate of 10 per cent. per annum, and were secured by mortgages executed on the same date that the notes were made. On the fourteenth day of March, 1875, Woodburn paid on the notes all interest to that date and $753 on the principal, leaving a balance due on the principal of $8,000. On the thirteenth day of March, 1880, there was due on the four notes the principal sum of $8,000, and Woodburn claims that on that day he paid Ege said sum of money in full payment of the notes. He also claims that on the same day he made a new loan of Ege of $8,000 for one year, with interest at the rate of 8 per cent. To secure the payment of this latter sum a note was executed by Woodburn, dated March 13, 1880, due in one year, and secured by mortgage on certain real estate executed on the same day. The original four notes were never surrendered to Woodburn, nor was the mortgage given to secure them canceled, and the only question presented by this record is whether they were paid.

The evidence of payment is in a small compass and is substantially as follows: Woodburn called on the cashier of the First National Bank of Sterling and made an agreement with him to answer his check for $8,000. The understanding was that the money was not to be drawn from the bank on the check, but when Woodburn's check on the bank should be presented the arrangement was that the cashier of the bank should notify the holder that the check was good. After this arrangement Woodburn drew a check for $8,000 in favor of Ege on the First National Bank of Sterling. Ege called at the bank and was informed that the check was good; then Ege loaned Woodburn $8,000 at 8 per cent interest, and took the new note and mortgage. There was no money paid over to Woodburn by Ege when this new loan was made; he merely returned him the check which he had previously received. If appellant's theory is correct here was a debt of $8,000...