Benedict v. Carter State Bank

222 N.W. 500, 54 S.D. 14, 1928 S.D. LEXIS 3
CourtSouth Dakota Supreme Court
DecidedDecember 20, 1928
DocketFile No. 6001
StatusPublished
Cited by2 cases

This text of 222 N.W. 500 (Benedict v. Carter State Bank) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benedict v. Carter State Bank, 222 N.W. 500, 54 S.D. 14, 1928 S.D. LEXIS 3 (S.D. 1928).

Opinions

CAMPBELL, J.

Plaintiff brought this action to recover the amount claimed to be due on three certificates of deposit issued to his order by the defendant bank, each in the principal sum of $2,000, payable in six months, with interest at 5 per cent, the first certificate dated October 30, 1923, the second dated December 15, 1923, and the third dated) January 15, 1924. There is no dispute between the parties but that plaintiff in fact delivered to defendant bank the sum of $2,000 on each of those occasions.

It seems further undisputed that on or about October 23, 1923, a certain contract was entered into between one H. Benedict, of Chicago, 111. (a brother of plaintiff), as first party, and E. V, Youngquist, the cashier of the defendant bank, as second party, by the terms of which the first party delivered to the second party 221 head of cattle, and the second party agreed to care for the cattle and feed them hay and corn from date until April 23, 1924, his compensation to' be 9 cents per pound for all gain in weight of the cattle, which contract was subsequently modified in writing to provide that the cattle should be fed to July 3, 1924, and that the compensation should he 10 cents per pound for gain in weight. This contract was made at Carter, S. D., on the day of its date. [16]*16H. Benedict, the plaintiffs brother, was not in South Dakota at that time, but all negotiations in his behalf were conducted by the plaintiff, C. R. Benedict, who signed the name, H. Benedict, to the contract in question. It seems to be admitted also that Youngquist entered into the contract upon his part for the benefit of defendant bank and later assigned the contract to the bank.

It seems also to be undisputed that there was at the time of the execution of such contract some sort of an understanding between the parties thereto that H. Benedict was to advance money from time to time to the second party named in said feeding contract in order to enable said second party to buy feed and comply with the feeding contract, such advances' to^ be deducted from the amount due to said second party at the termination of the feeding contract. The amount so to be advanced appears not to have been determined upon. It is also admitted that plaintiff, C. R. Benedict, as agent of and for and in behalf of his brother, H. Benedict, the first party in said feeding contract, delivered to Youngquist on three different occasions during the life of said feeding contract the respective sums of $1,000, $500, and $2,000 of H. Benedict’s money, which sums were represented by three promissory notes, each signed by E. V. Youngquist, and payable to the order of H. Benedict, with reference to which notes Youngquist testified: “Those are some of the notes that were to be used in the settlement of the feeding contract. They have not been paid except insofar as the feeding contract is concerned. The money was sent to- me by 'C. R. Benedict for his brother.”

As to the certificates of deposit here involved, it is the claim of defendant bank that these certificates also represented money belonging to H. Benedict furnished by C. R. Benedict to buy feed and thus promote the performance of the feeding contract, and that said certificates were never to be paid in money according to their tenor, but were to be deducted from the amounts due to the defendant bank or to Youngquist for and in behalf of the defendant bank at the completion and settlement of the feeding contract, and, when plaintiff brought this action to collect upon the certificates of deposit according to their tenor, the defendant bank pleaded as to each of said: certificates that the amount thereof had been paid by being applied upon the indebtedness due from H. Benedict to defendant under the feeding contract, amounting to $9,447.90 on July 3, 1924.

[17]*17The plaintiff, upon his part, does not question but that he negotiated the feeding contract in behalf of his ¡brother, H. Benedict, and does not question but that he agreed in behalf of said H. Benedict that said H. Benedict would advance money from time to time upon said feeding contract, and admits that the amounts of $1,000, $500, and $2,000 evidenced by the promissory notes above mentioned, signed by Youngquist, payable to H. Benedict, com-. prised money belonging to H. Benedict which plaintiff furnished to defendant bank pursuant to such agreement, and that said notes were not to be paid in cash according to their tenor, but were to be offset at the completion of the feeding contract. But with reference to the certificates of deposit in question it is the contention of plaintiff that they had no connection whatever with the 'H. Benedict feeding contract and that they represented his own personal funds deposited in the defendant bank in tlhe usual manner and to be repaid with interest according to their tenor, plaintiff’s position as to said certificates being set out in his own testimony substantially as follows:

“There was no agreement between Mr. Youngquist and myself in regard to any deposit that I might make in the bank. After we agreed on the terms of the feeding contract I agreed to furnish him some of H. Benedict’s money. He wanted to know if I could not deposit some money in his bank as the bank was hard up and if I did not have some money of my own that I could deposit in his bank. I had some money and I decided to do it and I told him I would do it. There was nothing said about using that money in connection with the feeding contract.
“I am working- for my brother in his cattle financing operations. I have no interest in these operations personally and never have had. My brother was to advance some money to Mr. Youngquist personally. The money 'he advanced is represented by Exhibits 'D,’ ‘E.’ and ‘F.’ These funds that he advanced separately to Mr. Youngquist were witnessed by promissory notes and for the funds that I deposited in the Carter State Bank of my own personal funds, the bank issued certificates of deposit to me.”

It clearly appears that the substantial dispute between the parties goes to the proposition of whether or not the certificates of deposit were connected up with the cattle feeding contract of H. Benedict, plaintiff’s brother.

[18]*18The case was tried' to the court with a jury, and the jury returned a general verdict in favor of plaintiff on all the issues. In addition, three special interrogatories were submitted to and answered 'by the jury.

Interrogatory No. i is as follows : “Did plaintiff when he took the three $2,000.00 certificates, Exhibits ‘A,’ ‘B’ and ‘'C’ 'have an agreement with E. V. Youngquist that the certificates were to be surrendered and the amount due thereon to 'be applied on money due for feeding the cattle under the feeding contracts in evidence between IT. Benedict and, E. V. Youngquist?”

To this the jury answered: “No.”

Interrogatory No. 2 was as follows: “Did the Carter State Bank furnish expense money for feeding the cattle under the contracts mentioned in Interrogator}- No. 1 and did it furnish it believing that the certificates of deposit were to be surrendered to the bank and that the amount due plaintiff should be applied on the feeding contracts referred to in Interrogatory No\ 1 ?”

To this the jury answered: “Yes.”

Interrogatory No. 3 was as follows: “Has there been sufficient money advanced by plaintiff C. R. Benedict or IT. Benedict or any one for them, exclusive of the certificates of deposit, to fully pay the amount due on the feeding contracts referred to in the foregoing interrogatories ?”

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Bluebook (online)
222 N.W. 500, 54 S.D. 14, 1928 S.D. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benedict-v-carter-state-bank-sd-1928.