Mobley, Ward & Davis v. Pendergrast

1. The counter-claim in favor of the defendant which will relieve a plaintiff’s demand from the bar of the statute of limitations must be one dependent upon a demand based on the extension of credit by such debtor to the creditor whose claim is sued on. To constitute that mutuality of accounts which will relieve the bar of the statute of limitations there must be something' more than the mere allowance of a credit item on behalf of the debtor; the debtor must extend credit t.o his creditor, or the creditor in some way become indebted to.his debtor on his own account, and, in the face of his…