Case ID: ohio-law-abs_4/html/0239-23.html
Source: Caselaw Access Project
Author: {"author": "JONES, J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

No. 304
    No. 19446
    Massillon Savings & Loan Company v. Imperial Finance Company.
    Error to the Court of Appeals of Stark County.
    297. CONTRACTS — 1. No recovery for breach of, made after performance prohibited by statute.
    2.When contract not entire, recovery permitted for part executed prior to effective date — If entered into despite prohibiting statute, no recovery.
    923. PLEADING — 1. Where illegality of a contract sued upon appears in answer plaintiff who relies upon prior adjudication should plead it in reply.
    2. But if the illegality appears in the trial evidence, and plaintiff offers evidence supporting such prior adjudication, it may be considered by the courts.
   JONES, J.

1. Where a contract is legal when made, and subsequently such contract or its performance is prohibited by statute, performance thereof after the time when such prohibitive law becomes effective is illegal and neither party can recover for breach of the contract.

2. So far as such contract has been executed prior to the effective date of such statute, recovery will be permitted, if the contract is not entire, but divisible, and the amount due can be apportioned.

3. A party who enters into a contract despite a statute prohibiting it cannot thereafter claim the fruits of its performance in a court of justice.

4. Where the illegality of a contract sued on appears in the answer, and plaintiff relies on a prior adjudication of that question in his favor, he should plead it in his reply. But if such illegality does not appear in the pleadings, but does appear in the evidence offered at the trial, and the plaintiff, without objection, offers evidence supporting such prior adjudication, the evidence so offered on that issue may be considered by the trial and reviewing courts.

Judgment affirmed.

Matthias, Allen and Kinkade, JJ., concur.