Alexander v. Capitol Lumber Co.

105 N.E. 45, 181 Ind. 527, 1914 Ind. LEXIS 66
CourtIndiana Supreme Court
DecidedApril 28, 1914
DocketNo. 22,539
StatusPublished
Cited by9 cases

This text of 105 N.E. 45 (Alexander v. Capitol Lumber Co.) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander v. Capitol Lumber Co., 105 N.E. 45, 181 Ind. 527, 1914 Ind. LEXIS 66 (Ind. 1914).

Opinion

Myers, J.

Action was begun March 10, 1910, by appellee against appellants on a promissory note, maturing March 4, 1909. Alexander answered in three paragraphs, the first a general denial, the second payment. By the third paragraph Alexander alleges his execution of the note as surety for Anderson, and that the fact was known to appellee, and that on February 9, 1909, the latter and Anderson entered into a written agreement, setting it out, the material parts of which are as follows:

“Feb. 3rd, 1909.
Mr. Geo. W. Anderson, Sumner, Miss. Dear Sir: — As per conversation with you, we hereby agree to purchase from you, approximately the following amounts of lumber at prices attached f. o. b. cars Evans’ Spur, Sumner, Miss. (Here follows a designated quantity of par[529]*529ticular kinds of lumber, and the prices for each kind, aggregating over $8,000 in value). It is understood that all the above lumber is to be well manufactured, and sawn into one-inch lumber with the exception of the item of good sound bridge oak, which is to be two inches thick. It is further understood that you are to handle this lumber promptly when sawn, and get the same on sticks without any delay; sticking the same in such manner as to produce best results. When you commence manufacturing, we will send our inspector to take over the lumber for us, as fast as manufactured, grading and tallying same. We will then make you a payment by note or cash, of one-half of the value, less $2.00 per M. of the lumber taken over by our inspector. The $2.00 per M. mentioned being held back as a further guarantee that you will deliver our lumber to the railroad, and load on board the cars. As soon as the lumber is loaded on cars and invoice and bill of lading for same forwarded to us we will pay you the balance, if any, in cash, up to one-half of the value of the lumber loaded; balance of the value to be credited one-half on your note endorsed by Mr. Alexander, and one-half on your note which we hold without endorsement. Yours truly, Capitol Lumber Co.
Signed in duplicate by Wm. F. Johnson, Treas. and Gen. Mgr., this 3rd day of February, 1909. Accepted this Feb. 3,1909. George Anderson. ’ ’

That the contract was executed by appellee through William F. Johnson, its general manager. That at the time the contract was executed, the parties to it were in the city of Indianapolis, Indiana, and it was necessary in order for Anderson to perform the terms of said contract, on his part to be performed, to go to Mississippi, a distance of several hundred miles, and employ and organize the necessary labor, and procure and set up the necessary machinery for sawing, and delivering the timber as in the contract provided, all of which was at the time well known by appellee. That it was impossible for Anderson to go to Mississippi and make the necessary preparations for sawing and delivering the lumber and thereafter to perform the terms of said contract, on his part to be performed, until after March 4,1909, [530]*530all of which appellee at the time of the execution of the contract well knew. That prior to the execution of this contract, Johnson, Anderson, and appellee had had long experience in handling and manufacturing lumber, and that it was fully understood, contemplated, and intended by the parties to the contract at the time it was executed, and in the execution of it, that the performance by Anderson of the terms of the contract, on his part to be performed, could not and would not be completed, until after the maturity of said note. That it was further understood, contemplated and intended by the parties to the contract, when the same was executed, that deliveries of the lumber should be made by Anderson from time to time after the maturity of the note, and that a part of the purchase price of each delivery should be treated as a payment on the note, and that the note should not, and would not be collected until after the performance by Anderson of the terms and conditions of the contract, on his part to be performed, or until after a reasonable time for such performance had elapsed, except as the same should be in part collected by the receipt of the deliveries of lumber as in the contract provided, and as contemplated and intended by the parties thereto. That by reason of the execution of the contract, the time of payment of the note was extended beyond the date of its maturity, and until such time as Anderson could with reasonable diligence, perform the terms of the contract. That after the contract was executed, Anderson went to Mississippi, employed and organized the necessary labor, and procured and set up the necessary machinery for cutting the lumber and proceeded to cut and deliver the same, that he was engaged in cutting the lumber and delivering it to appellee, as by the contract required, at the time of the maturity of the note, and so continued until long after that time, and that during all that time, appellee received and accepted deliveries of the lumber, and after the note became due, acknowledged and endorsed a payment upon the note [531]*531for and on account of a part of the lumber delivered to it by Anderson, in the sum of $240.70, December 9, 1909; hence discharge is claimed.

A trial by the court resulted in a finding and judgment in favor of appellee and against appellants for the sum of $1,951.49. The court also found that Anderson executed the note as principal and Alexander as surety, and that the property of Anderson should be first exhausted.

The only error relied on is that the court erred in sustaining appellee’s demurrer to the third paragraph of answer of Alexander.

It is conceded by appellants, that an extension of time which will release a surety, must be for a definite period, for a valuable consideration, and granted without the consent of the surety by the holder, with knowledge of the suretyship; but it is contended that where there is some legal consideration accepted as sufficient by the parties, the consideration will not be inquired into by the courts, after the contract has been performed in whole, or in part, and as applied to the contract in this ease, that any period of extension of time for payment, is sufficiently definite to release a surety, if there are sufficient data given, from which the exact period can be ascertained; upon the maxim that that is certain which can be made certain, and that a definite time need not be stated, nor need it be stated in so many words, that an extension is given, if that is the intent, nor that it should be of such character as to prevent the holder from maintaining an action, prior to the expiration of the extended time. It is the theory' of appellee, that as all prior negotiations and all intendments must be regarded as merged in the written instrument, the agreement cannot be enlarged by allegations of the intendment or understanding of the parties, or the conditions then present, and that a contract of extension to discharge a surety, must be such as to tie the hands of the creditor for a definite time, for a valuable consideration.

[532]*532 1.

2.

We have bo difficulty in determining that the contract in regard to the lumber, was supported by a valuable consideration as to both parties to it.

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Cite This Page — Counsel Stack

Bluebook (online)
105 N.E. 45, 181 Ind. 527, 1914 Ind. LEXIS 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-v-capitol-lumber-co-ind-1914.