Appleby v. Barrett

28 Pa. Super. 349, 1905 Pa. Super. LEXIS 199
Superior Court of Pennsylvania·Decided April 24, 1905·No. Appeal, No. 227·Published·Cited by 9 cases

Opinion

Opinion, by

Porter, J.,

The plaintiff brought this action upon a promissory note payable to his order, made by the defendant, and explicitly averred in his statement that he was a bona fide holder of the note for full value. The defendant filed an affidavit of defense, which the court below upon a rule for judgment held to be sufficient, and the plaintiff appeals.

The affidavit of defense did not deny that the plaintiff had paid full value for the note at the time it was given, nor did it attempt to assert that there had been any failure of consideration. The only defense attempted to be set up was founded upon an alleged parol understanding as to the manner in which the note should be paid. The material part of the affidavit is as follows: The defendant admits the making of the memorandum note upon which this suit is brought, but avers that the same was given by him merely as a memorandum and that it was distinctly understood between him and the said plaintiff that it was to be paid out of his share of the profits of certain business transactions hereinafter more particularly set forth, and not in cash. Defendant avers that on or about October 22, 1901, he entered into a business contract with the said plaintiff to engage in the real estate business in the city of Philadelphia, and that in and by said contract he, the said defendant, was to receive as compensation for his services a sum equivalent to the equal one-half part of the net profits derived from the various transactions of the [351] plaintiff in connection with the real estate business. Then follow the averments that offices were taken in the city of Philadelphia for the purpose of said business, that the same was carried on until about October 14, 1902, when the plaintiff was compelled to absent himself from the city of Philadelphia, leaving the defendant in charge of the offices of the concern and compelled to pay the rental therefor for about one year out of this own pocket, that then and thereafter the plaintiff became indebted to the defendant under his contract in the sum of at least $700, said indebtedness being partially made up as follows : “ one-half rent of Philadelphia offices from October 1, 1902 to November 1, 1903 $148.96 ” and “ one-half taxes paid in excess as profits 1902, 1903 and 1904, about $180 ; aggregating $328.96. The balance, amounting to $371.04, deponent has been informed and believes, and expects to be able to prove at the trial of this case, represents deponent’s interest in sales made by plaintiff since October, 1902, and for which he has not accounted to deponent under his contract, which is due and owing to deponent by the said plaintiff, and for which he asks judgment on certificate.”

The affidavit contained no averment that the defendant was induced to sign the note bjr reason of the oral stipulation, and this was sufficient in itself to warrant the entry of judgment for the plaintiff: Martin v. McCune, 8 Pa. Superior Ct. 84; Keough v. Leslie, 92 Pa. 424. The averments of the affidavit do not indicate that any oral agreement was the inducing cause for the signing of the written.

In a suit between the original parties to a promissory note, parol evidence may be given to show what the consideration of the note was, that the consideration has failed, or that there was a parol agreement made contemporaneously with the note, and not inconsistent with it, by the fulfillment of which the note has been substantially paid: Michigan Mut. Life Insurance Company v. Williams, 155 Pa. 405; Martin v. McCune, 8 Pa. Superior Ct. 84: Fischer v. Dalmas, 173 Pa. 296; Clinch Valley Coal and Iron Company v. Willing, 180 Pa. 165. Such evidence does not contradict or vary the instrument. “ But no case goes to the length of ruling that such evidence is admissible to change the promise itself, without proof or even allegation of fraud or mistake : ” Anspach v. Bast, 52 Pa. 356. [352] Parol evidence of an agreement when the note was made, that it should be renewed at maturity, would contradict the written contract of the parties, and is therefore inadmissible, and an affidavit averring such an agreement, or an agreement that the defendant was not to be required to pay until he could spare the amount, is insufficient: Anspach v. Bast, 52 Pa. 356; Clarke v. Allen, 132 Pa. 40; Wolf v. Rosenbach, 2 Pa. Superior Ct. 587. An affidavit of defense which admits that a promissory note was given for a full consideration, but alleges a parol contemporaneous agreement that the maker should only be required to pay out of a certain fund, or in a certain manner having no connection with the consideration upon which the note is founded, is insufficient: Wharton v. Douglass, 76 Pa. 273; Ziegler v. McFarland, 147 Pa. 607; Lee v. Longbottom, 173 Pa. 408. This affidavit of defense contains no allegation of fraud or mistake, and the authorities above referred to conclusively determine that the primary contention of the appellee, that by the parol agreement his liability upon the note was to be confined to the profits from certain business transactions, is not well founded.

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Appleby v. Barrett, 28 Pa. Super. 349, 1905 Pa. Super. LEXIS 199 (Pa. Ct. App. 1905).

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