Randolph County NcArchives Court.....John Clark's Administrators, Jacob Hoover V. 1819
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Deb Haines http://www.genrecords.net/emailregistry/vols/00003.html#0000719 January 27, 2009, 6:21 pm

Source: Nc Reports
Written: 1819

Jacob Hoover v. John Clark's Administrators

From Randolph

May Term 1819

Action of covenant on a deed, in which the Defendant set forth "that in 
consideration of 44£ to him paid, he had sold to the Plaintiff a note of hand 
upon John Arnold for 50£, given by him to one Macshan: And if there should any 
thing fail in the recovery of the note, or if Arnold should pay it in paper 
money without allowing the depreciation, then and in that case, the Defendant 
obliged himself to make the same good to the Plaintiff; or if Arnold should he 
allowed a receipt by one Dix to him for 18£, the Defendant obliged himself to 
make it good."

This covenant extends to the solvency of Arnold, and the object of it was to 
secure the Plaintiff against his insolvency, the allowance of the depreciation 
and the receipt of Dix.

The words "if any thing should fail in the recovery of the said note," point 
to a complete indemnity to the Plaintiff, if from any cause he should not 
receive the amount of the note: they mean not only that a judgment should be 
obtained, but, that the money should be paid.

A "recovery" signifies, in legal contemplation, the obtaining of any thing by 
judgment or trial at law.

This was an action covenant brought to recover damages for a breach of the 
covenants contained in the following deed, to-wit:

"Know all men by these presents, that I, John Clark, of Randolph County and 
State of North Carolina, for and in consideration of the sum of forty-four 
pounds, hard money, to me in hand paid, by Jacob Hoover, have bargained and 
sold him one note of hand upon John Arnold, Esq., given by him to Nehemiah 
Macshan, for fifty pounds, Virginia money; now if there should any thing fail 
in the recovery of the said note, or if the said John Arnold should pay the 
said note with paper money, without allowing the depreciation, then and in 
that case, I do oblige myself to make the same good to the  said Hoover; or if 
the said John should be allowed a receipt given by William Dix to him for 
eighteen pounds, paper money, I also oblige myself to make it good. Witness my 
hand and seal, this 11 April, 1793.
                                       JOHN CLARK, [Seal.]"

The declaration assigned for breaches, 1st. That Jacob Hoover, (without his 
default) did entirely and absolutely fail in the recovery of the said note, or 
any part thereof, from John Arnold; and that John Clark had not, although 
often requested, made the same good to him, nor indemnified him for the loss 
which he had sustained thereby. 2. That upon a settlement with John Arnold, he 
was obliged to allow, and did allow to Arnold, the receipt given by William 
Dix to Arnold for eighteen pounds, paper money, which Clark, although 
requested, had not made good to Hoover.

Upon the trial, the Court non-suited the Plaintiff, on the ground that the 
covenant did not extend to the solvency of Arnold, but only that a judgment 
should be obtained; that the depreciation should be allowed, and that the 
receipt of Dix should not be available. A rule for a new trial being obtained, 
it was sent to this Court.

Taylor, Chief Justice: The words in the covenant, declared on are, "now if 
anything should fail in the recovery of the said note, or if the said Arnold 
should pay the same in paper money, without allowing the depreciation, then 
and in that case, I do oblige myself to make the same good to the said Hoover; 
or if the said Arnold should be allowed a receipt given by William Dix to him, 
for eighteen pounds, paper money, I do oblige myself to make it good." If 
words might have been selected to express more clearly the intent of Clark, to 
secure the Plaintiff against the insolvency of Arnold in relation to the note, 
yet such intention may be fairly inferred from the terms employed. It would 
seem strange that the parties should provide against the depreciation of the 
money, by an undertaking of Clark's to make it good, and yet the Plaintiffs be 
content to take the risk of Arnolds' inability to pay any part of the sum. The 
undertaking respecting the receipt of Dix, admits of the same observation, and 
would, under any other construction than that contended for by the Plaintiff, 
betray a strange caution and anxiety as to the parts of a sum intended to be 
seemed, when the whole is left at risk. But the words "if anything should fail 
in the recovery of the said note," point to a complete indemnity to be 
afforded to the Plaintiff, if from any cause he should not receive the amount. 
A judgment is of no more value than a note, and a covenant that a judgment 
shall be recovered, seems an useless undertaking, unless it be also meant that 
the money shall be paid. If Clark had under taken simply for the recovery, 
without anything more, the legal construction would have been, not only that a 
judgment should be obtained, but that the money should be paid. But he has not 
merely stipulated for the recovery of the judgment, but of the note. A 
recovery signifies, in legal contemplation, the obtaining of anything by 
judgment or trial at law. Coke Litt., 154. The recovery of the note must, 
therefore, signify the obtaining of the money due upon it, by means of a 
judgment. In my view of the covenant, the apparent intention of the parties is 
borne out by a technical interpretation, in which all the words are satisfied 
by an effective meaning. 

The non-suit must be set aside.

Reversed.

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