Adrian State Bank v. Eichmeier

143 N.W. 863, 163 Iowa 247
CourtSupreme Court of Iowa
DecidedNovember 12, 1913
StatusPublished

This text of 143 N.W. 863 (Adrian State Bank v. Eichmeier) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adrian State Bank v. Eichmeier, 143 N.W. 863, 163 Iowa 247 (iowa 1913).

Opinion

Deemer, J.

The case went to the jury upon a single affirmative issue pleaded by the defendant Katie Eichmeier, who is the only defendant in the case and the only party in interest. That defense was, in substance:

. . . That at the time the note sued on was executed by. A. Eichmeier, the same was not signed by her (Katie [250]*250Eichmeier); that at the time said note was executed the same was secured by a mortgage executed upon certain lands in Nobles county, Minn., subject to a prior mortgage of $1,500; that some time in May, 1909, or possibly June, the said first mortgage became due, and there was accrued interest thereon to the extent of $37.50; that then and there the said A. Eichmeier arranged with one Brickson, the cashier of plaintiff bank, who was acting as agent for one C. W. H. Beyer, the owner of the first mortgage, to procure an extension of the same upon the condition that the said A. Eichmeier would execute a note of $65 to the plaintiff in this ease, with this defendant as surety, and that said Brickson caused an agreement for an extension to be drawn up and signed by said Eichmeier and also the said note of $65 to be thus signed; that at the time said contract and note were drawn up the defendant Katie Eichmeier was not present, but, the matter being explained to her, she consented to the arrangement and agreed to sign the said $65 note and the agreement for extension; that pursuant to said agreement she called at the bank of,the plaintiff and notified said Brickson that she had come to sign the $65 note and necessary papers for the extension of the $1,500 mortgage; that thereupon she signed •the $65 note and also the agreement for extension; that, after she had signed these two papers, the said Brickson shoved over to her another paper which he told her was necessary for her to sign in order to complete the deal; that she signed the same without reading it, supposing it to be one of the papers connected with the extension of said loan, but she now believes and charges the fact to be that said Brickson, well knowing that she would not sign the $3,000 note, when comprehending that she was so doing, falsely represented to her that the paper was one in connection with the $1,500 note, when in truth and in fact it was the $3,000 note sued in this case.

The trial court instructed that the burden was upon her to prove by a preponderance of the evidence: “1. That she signed said note supposing it to be one of the papers connected with the extension of the $1,500 note. 2. That said Brickson, at the time she executed the note sued in this case, made some false representation by word, or conduct, that the [251]*251note now sued was a paper connected with the extension of tlie $1,500 note. 3. That she did sign the note sued in this case relying upon such false representations so made by said Briekson.”

For a reversal of the judgment entered upon a verdict for the defendant, it is contended that the court erred in admitting certain testimony, in refusing to give certain instructions asked, and in giving certain instructions on its own motion, and it is also contended that the court erred in overruling plaintiff’s motion for a new trial.

To a correct understanding of the matters presented, it will be necessary to refer to some of the facts and to some of the issues presented by defendant in her answer which were not submitted to the jury. Plaintiff is a bank doing business in the state of Minnesota, and defendant August Eichmeier, who was and is a resident of the same state, was a customer of the bank. Eichmeier was largely indebted to the bank, and the cashier thereof, one Briekson, was endeavoring to get this indebtedness secured. The debtor owned eighty acres of land in the state of his residence, which land was incumbered by a mortgage executed to one Beyer, to secure the sum of $1,500. Plaintiff was insisting that Eichmeier and his wife give the bank a second mortgage upon this land to secure the indebtedness due it. After some negotiations and some time in the year 1908, a note and second mortgage were prepared, and they each purport to have been executed on February 15, 1908; the mortgage being acknowledged by both husband and wife on the- day of March, 1908. The note was for $3,000 and is the one in suit. The mortgage purports to secure this note and was made subject to the Beyer mortgage. Among other defenses, Katie Eichmeier pleaded that she did not sign the note until some time in June, 1909, when the Beyer mortgage became due; that her signature was obtained by fraud and deceit at the time she was executing 'some other papers in order to secure an extension of time on the Beyer note; that she did not inten[252]*252tionally sign the note in suit; and that whatever she did sign she thought were necessary papers to secure an extension of the Beyer indebtedness. She also averred that before signing the note in suit she inquired of the plaintiff bank as to the amount of her husband’s indebtedness and was informed that it did not exceed the sum of $3,067; that, acting on this belief, she signed her husband’s note as surety only; that the land upon which the mortgage to secure the note was executed was worth at that time more than $6,000 and was ample security for all the indebtedness secured by mortgages thereon. She also averred that her husband was indebted in much larger amounts than the bank represented and that it falsely stated the amount of the indebtedness in order to induce her to sign the note. What is called the third count of her answer pleads the defense which was submitted to the jury. In another “count” (1) she pleaded a foreclosure of the Beyer mortgage and a sale of the property to Beyer thereunder; that thereafter plaintiff caused notice to be filed that it would redeem from the foreclosure sale; that on August 29, 1911, an officer and director of the plaintiff bank took an assignment from Beyer of-his certificate of foreclosure sale, paying him therefor the full amount due him upon his mortgage and upon the certificate of sale; that this amounted to a redemption; and that thereby plaintiff’s debt has been fully discharged. She also pleaded most of these facts in another “count” of her answer (5), and, after averring that the land was worth much more than the indebtedness secured by the mortgages thereon,'pleaded that if the plaintiff did not redeem it was its duty to have done so, and that in such event she is discharged as surety because plaintiff did not redeem and preserve its mortgage security. In another “count” (6), she pleaded a material and fraudulent alteration of the mortgage given to secure plaintiff’s debt, thus discharging the same to her prejudice, as the mortgage security was ample to satisfy and pay the debt.

Plaintiff demurred to the first and fifth so-called counts, [253]*253and its demurrer was sustained, and exceptions were taken to the ruling. This much seems to be necessary to an understanding of the rulings and instructions complained of. When the case was commenced, what were known as counts 2, 3, 4 (if there was a 4) and 6 of defendant’s answer were unattached and apparently presented the issues for trial.

1. Negotiable instrumenta: materiality. I. Over plaintiff’s objections, defendant was permitted to introduce testimony as to the value of the Minnesota land.

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Related

Streeter v. First National Bank
4 N.W. 915 (Supreme Court of Iowa, 1880)
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25 N.W. 246 (Supreme Court of Iowa, 1885)

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Bluebook (online)
143 N.W. 863, 163 Iowa 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adrian-state-bank-v-eichmeier-iowa-1913.