Case Name: BENJAMIN F. MIDDAUGH, Respondent, v. THE CITY OF ELMIRA, Appellant
Court: New York Supreme Court, General Term
Jurisdiction: New York
Decision Date: 1880-11
Citations: 30 N.Y. Sup. Ct. 79
Docket Number: 
Parties: BENJAMIN F. MIDDAUGH, Respondent, v. THE CITY OF ELMIRA, Appellant.
Judges: Present — Learned, P. J., Bockes and Follett, JJ.
Reporter: Supreme Court Reports (Hun)
Volume: 30
Pages: 79–81

Head Matter:
BENJAMIN F. MIDDAUGH, Respondent, v. THE CITY OF ELMIRA, Appellant.
'Interest — when allowed as damages, it is barred by the receipt of the principal.
The plaintiff, having received an assignment of a non-interest-bearing order, drawn upon the defendant’s treasurer, presented it on September 3, 1872, to the treasurer for payment, which was refused for want of funds. On August 20, 1874-, the order was again presented to the treasurer and paid by him, ho then telling the plaintiff that he could not pay any interest thereon; that it was customary to have bills for over-due interest made out and presented to the common council, who issued orders therefor which he could pay. The order was then surrendered, the plaintiff stating- that he would take the money, if he would not thereby release his claim for interest, but would not if he did thereby release his claim. The common council having refused to allow the claim for interest, this action was brought to recover the amount due.
Held, that the plaintiff was not entitled to recover. (Bocees, J., dissenting.)
Appeal from a judgment in favor of tbe plaintiff, entered upon tbe trial of tbis action by tbe court, without a jury.
One 'Wyekoff, having done work for tbe defendant, received in payment an order, not bearing interest, drawn on its treasurer, and signed by the mayor and clerk, for tbe amount due. Tbis be transferred to tbe plaintiff. It was payable, by its terms, September 1, 1872. The plaintiff presented it September 3, 1872, and tbe treasurer refused to pay, because not in funds. On August 26, 1871, the plaintiff again presented tbe order to tbe treasurei", and received payment and surrendered the order. At that time the treasurer told plaintiff that be could not pay any interest. Tbe plaintiff asked bow he could get his interest. Tbe treasurer told him tbe common custom, that they made out bills for over-due interest, and presented them to tbe common council; they issued an order and be could pay. The plaintiff testifies that be said if that did not release bis claim, be would take it, if it did be would not; that they would go and see tbe city attorney.
About July 2, 1877, tbe plaintiff presented a claim for interest to tbe common council, and it was rejected: He then brought tbis action.
jS’. C. Van Puzen, for the appellant.
Reynolds do Collin, for the respondent.

Opinion:
Learned, P. J.:
The rale is stated, in Southern Central R. R. Co. v. Town of Moravia (61 Barb., 180), that, where there is no agreement in the contract to pay interest, interest is allowed by way of damages only; and that, in such a case, when the principal has been paid in full, no action can be maintained to recover interest. This is established by several cases there cited. (And see Riley v. Maxwell, 4 Blatchf., 237.) It is plain that the treasurer had no authority to create any different obligation from that which the law imposed. His promise (if he had promised) to pay the interest would not be binding on the city. The conversation between the plaintiff and the treasurer can amount, then, at the most, only to a statement of the treasurer's opinion, on a legal point, that the surrender of the order would not release the claim for interest, and to a notice by the plaintiff, that he would not surrender the order, if that act did release the claim. There was no misstatement of fact by the treasurer. If the plaintiff mistook the law, the city should not be liable. We do not see anything in this case to take it out of the rule above mentioned. The settled rule is wise, and exceptions to it should be rarely allowed.
The judgment should be reversed, and a new trial ordered, costs to abide event.