Bank of Axtell v. Johnson

249 N.W. 302, 125 Neb. 154, 1933 Neb. LEXIS 173
CourtNebraska Supreme Court
DecidedJuly 3, 1933
DocketNo. 28561
StatusPublished
Cited by5 cases

This text of 249 N.W. 302 (Bank of Axtell v. Johnson) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Axtell v. Johnson, 249 N.W. 302, 125 Neb. 154, 1933 Neb. LEXIS 173 (Neb. 1933).

Opinion

Messmore, District Judge.

This is an appeal from the district court for Kearney county by appellant, Arthur G. Johnson, one of the defendants in the court below.

The petition of plaintiff is in the usual form and contains three causes of action on promissory notes, one for $188, one for $1,000 and one for $4,600.

The separate answer of defendant Arthur G. Johnson admits the signing of the $188 note and the $4,600 note; alleges that he signed said notes after defendant Eddie H. Johnson had signed and delivered said notes to plaintiff; that the same were signed without consideration to him and therefore void; alleges that he signed the notes upon the representations of the president of plaintiff bank; that the principal on said notes was indebted to said bank in the sums represented thereby; that he believed and reli'ed on said representations, but since the signing of said notes has learned that said representations were not true and were made with the purpose and intent of deceiving [156]*156this defendant and of obtaining his signature thereto; alleges further that he does not have sufficient knowledge as to whether or not his eodefendant, Eddie H. Johnson, has paid the notes mentioned in plaintiff’s petition and demands strict proof thereof, and denies each and every allegation contained in the petition not specifically admitted.

Plaintiff by reply denies each and every allegation of said answer; alleges that said defendant Arthur G. Johnson signed said notes set forth in paragraphs 1 and 3 of the petition, the $188 note and the $4,600 note, at the request of defendant Eddie H. Johnson, and that he signed said notes as surety;

The jury returned a verdict against the defendant Arthur G. Johnson in the amount of $4,788, the court having theretofore directed a verdict against the defendant Eddie H. Johnson, submitting only to the jury the alleged liability of defendant Arthur G. Johnson on said notes.

The evidence of plaintiff went to the history of the notes in suit and the signing of same by appellant. The $4,600 note had been renewed on several occasions in the past eight or nine years and at each time the old note had been marked paid and surrendered, so the particular note in controversy stands as a renewal note.

An alleged conversation appears in plaintiff’s evidence, as related by A. G. Warren, principal witness for plaintiff, wherein Arthur G. Johnson said: “‘Mr. Warren, I would pay the notes if I had the money; I know Brother Ed hasn’t the money and I would pay it if I had the money:’ I said, T will loan you the money and take a mortgage on the farm.’ We agreed and I made out the mortgage and notes. Then he (Arthur G. Johnson) said, ‘Hold the mortgage and notes a few days.’ ”

The witness further testified: “He came in a few days later and we talked the matter over and I said that we should close this up, and he said that we might as well. I [157]*157went that afternoon to Minden to record the papers and I offered him those notes, and he said, ‘No; you keep them.’ I took the mortgage and filed it for record. The next morning he came in, Arthur G. Johnson, with another party and wanted to call it off. I said, ‘All right, I will call to the county clerk and tell him not to record it.’ We both went up there and got the papers and gave them back.”

To continue: “What did he tell you about going back on the deal afterwards ? A. He said if he took the notes and gave me a mortgage he would have to sue his brother and he didn’t want to. He said, ‘The better way is for you to sue us both, and when you get a judgment I will pay it, but I don’t want to sue my brother.’ ” “Q. What con-i versation did you have with the defendant Arthur Johnson as to why he didn’t want to take the three notes and hold them against his brother, if anything was said along that line? * * * A. He said he didn’t want to sue his brother; he preferred to have the bank sue them both and after the bank gets a judgment he would pay it.” There also developed in the evidence the following: “What was the occasion of Arthur G. Johnson signing that $6,000 note, if you recall? (This later developed into the $4,600 note in suit after payments had been made thereon.) A; The banking department of the state of Nebraska sends, out their examiner with instructions under the banking laws of the state of Nebraska and he examines every note in this case, and prior to that time he made objections to our loaning money to Ed Johnson without some security. I asked him what he would require, and he said, ‘Either get a signer with a property statement or chattel security.’ I took it up with both Arthur and Ed and the agreement was made that Arthur would sign the note.” The witness testified to a conversation had with appellant in the bank as follows: “I explained to him that the banking department would not allow us to loan so much money without security, and that I had offered to take security [158]*158through property, but he wouldn’t give it, and then I safd, ‘The department said if you would sign a statement, give a property statement and you boys go on the note together we will carry you.’ Q. What did he say? A. He said he would do it.”

The evidence of appellant is that his brother Eddie had never talked to him about signing the $4,600 note, but that Mr. Warren told him the banking department demanded his signature; that he received nothing from the bank at that time for signing the note, nor at any other time, and practically verified the conversations related by Mr. Warren, as set out in the record.

Appellant’s evidence as an accommodation signer was to the effect that he did not receive any benefit or consideration, directly or indirectly, by way of the transaction of which the note was a part; that the $4,600 note was not signed by him at the time Eddie H. Johnson signed it; that it was without the prior knowledge, consent or procurement of the maker thereof, Eddie H. Johnson, and that no agreement or understanding existed between all the parties, the creditor, the principal and the surety, that the surety should sign as such.

The only assignment of error is to instruction No. 3, and the part thereof objected to is as follows: “If there was no such agreement in this case and if the defendant Arthur G. Johnson attached his signature to the notes in suit only as a matter of accommodation to the bank to enable it to make a showing which would satisfy the bank examiner as to that paper, and without the prior knowledge, consent or procurement of the defendant Ed H. Johnson, then Arthur G. Johnson would not be liable as surety in this case.” The court in the first part of this instruction, to which no objection is made, correctly stated the law upon the question of suretyship, which informed the jury as follows: “Upon the question of suretyship you are instructed that one signing as surety for another becomes liable for the debt by reason of his promise to [159]*159pay the same and by reason of the giving of credit to the principal maker on account thereof. It is not necessary in such cases in order to fix the liability of the surety that there should be any special or separate consideration or value passing to the surety for the signing of the note. The value consists in the extension of the credit to the principal maker for whom the surety signs. Neither is it necessary in order to make the contract binding on the surety that it should be signed at the same time or at the same place by him and the principal.

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Bluebook (online)
249 N.W. 302, 125 Neb. 154, 1933 Neb. LEXIS 173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-axtell-v-johnson-neb-1933.