Rubert & Guamis v. C. A. Smith

Summary

This 1908 Supreme Court case involved a guaranty dispute where Smith guaranteed Miss Hunter's rental obligations to Rubert & Guamis under a contract extending payment terms for overdue rent. When Hunter allegedly defaulted, Smith claimed she had paid based on a receipt for November rent, arguing this proved payment of earlier installments under Civil Code Article 1110. The Supreme Court rejected this defense, ruling that the Civil Code provision was inapplicable since the obligation arose from a subsequent payment agreement, not the original lease. Applying Code of Civil Procedure Section 334(9), the court held that the receipt created only a disputable presumption of payment for prior installments, insufficient to prove actual payment. The decision established important precedents regarding guarantor liability, the interpretation of payment receipts, and the distinction between presumptions and conclusive proof in contractual obligations. Smith remained liable for the guaranteed amounts despite Hunter's alleged payments.