Betcher v. Kunz

192 P. 955, 112 Wash. 563, 1920 Wash. LEXIS 772
CourtWashington Supreme Court
DecidedSeptember 16, 1920
DocketNo. 15919
StatusPublished
Cited by15 cases

This text of 192 P. 955 (Betcher v. Kunz) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Betcher v. Kunz, 192 P. 955, 112 Wash. 563, 1920 Wash. LEXIS 772 (Wash. 1920).

Opinion

Main, J.

By the complaint, the defendants are charg’ed with a conspiracy to defraud, and the plaintiff claims damages as a result thereof. In the answers, with one exception, which is not here material, after denying the fraudulent conspiracy, an affirmative defense was pleaded. The plaintiff replied to the affirmative matter in the answer. Upon the issues thus framed, the cause proceeded to trial before the court and a jury. At the conclusion of the trial, the court, upon motion of the defendants, withdrew the cause from the jury and entered a judgment dismissing the action. From this judgment, the plaintiff appeals. The facts necessary to present the questions to be decided upon this appeal may be summarized as follows:

Sometime during the month of May, 1917, the Oregon-Washington Automatic Speed Signal Company purports to have-been organized as a corporation under the laws of the state of Washington, with its principal place of business at Harrington. Sometime later, probably during the month of June, the appellant purchased 10,000 shares of the capital stock, of the par value of $1 per share, then owned by Gr. A. Lanphere. In payment of this he gave his promissory note in the sum of $10,000. During the latter part of the year 1917 and the early part of the year 1918, the appellant purchased 5,000 shares more, but from another party, [565]*565and for this gave promissory notes which aggregated the snm of $5,000. On the 13th of April, 1918, the appellant went to a room in a hotel at Spokane with L. B. Simons and Gf. L. Bice, where he claims that they caused him to become drugged and intoxicated. In any event, on this occasion he signed three notes for $5,000 each. A few days later, Bice drove to his home in an automobile and there handed him 30,000 shares of the capital stock of the Oregon-Washington Automatic Speed Signal Company, saying to him, as appellant testifies:

“Here, Betcher, you have got a bunch of this stock and I have got this. It ain’t ever going to do me any good. You might as well have this.”

Bice immediately drove away and the stock remained in the possession of the appellant. A day or two after this the appellant discovered in his pocket a written memorandum of contract whereby Bice had agreed to sell him this stock. The notes were negotiated and passed into the hands of innocent holders. The appellant claims that the first he knew it was claimed he had signed any notes was when he heard from some of his friends that they were being offered for sale in the neighborhood of Waterville, where he formerly resided. On or about the 23d of June, 1918, the appellant employed an attorney, who proceeded with him from Spokane to the home of the respondent Lanphere, near Waterville, and entered into negotiations which resulted in the following writing:

“Exhibit ‘13.’ In consideration of the surrender and return by G. A. Lanphere to Julius A. Betcher of his promissory note for ten thousand dollars, dated on or about June 27,1917, and payable to the order of said G. A. Lanphere on or about October 15,1918, with eight per cent per annum interest after such maturity of said note for the return by the said Julius A. Betcher to [566]*566said Q-. A. Lanphere of ten thousand shares of the capital stock of the Oregon-Washington Automatic Speed Signal Company, evidenced hy stock certificate evidencing and representing said stock, and in addition thereto the payment of five hundred dollars this day made hy said Julius A. Betcher to • said G-. A. Lanphere, the said Julius A. Betcher does hereby release the said Gr. A. Lanphere from any and all further pecuniary liability for and on account of or connected with the sale of any of the stock of said company to the said Julius A. Betcher. Julius A. Betcher. In the presence of L. J. Birdseye.”

This document will hereinafter be specially considered. Sometime during the month of September, 1918, the present action was begun, and, as already stated, charges a conspiracy to defraud. By the action the appellant sought to recoup his loss upon the stock that he had purchased and for which he had given notes other than the Lanphere stock. In the answer the defendants denied the charge of. conspiracy to defraud and, as an affirmative defense, pleaded that the appellant, on or about June 24, 1918, made full and final settlement with Lanphere, who executed a release to him for and on account of any pecuniary liability on account of the sales of any stock in the corporation above mentioned. A copy of the release, which is the document above set out, was attached to the answers as an exhibit and made a part thereof. The appellant moved to strike the affirmative defense, which was denied. Thereupon he interposed a demurrer, which was overruled. The first error assigned relates to the ruling of the trial court upon the motion and demurrer.

If we have gathered the argument correctly, the theory of the appellant is that, since the respondents had denied in their answer the charge of fraudulent conspiracy, they could not plead affirmatively a release thereof without embodying in the affirmative defense [567]*567an admission of the conspiracy. This contention cannot he sustained. The respondents, in denying the conspiracy and pleading affirmatively a release, were not within the rule prohibiting inconsistent defenses. Davis v. Seattle National Bank, 19 Wash. 65, 52 Pac. 526; Irwin v. Buffalo Pitts Co., 39 Wash. 346, 81 Pac. 349; Irwin v. Holbrook, 32 Wash. 349, 73 Pac. 360. In the case last cited, the rule is stated as follows:

“Defenses are inconsistent only when one in fact contradicts the other. Where there is only a seeming and logical inconsistency, which arises merely from a denial and the plea in confession and avoidance, such defenses are not held to be inconsistent.”

The case of the Seattle National Bank v. Carter, 13 Wash. 281, 43 Pac. 331, 48 L. R. A. 177, relied on by the appellant, is not out of harmony with this rule.

The next question is whether the release by its language covers the conspiracy charged in the complaint. It is contended that the release only applies to the 10,000 shares of stock which was purchased from Lanphere, and does not apply to the conspiracy by which it is claimed the appellant was defrauded in the other two transactions. It is the law in this state, as held in Abb v. Northern Pac. R. Co., 28 Wash. 428, 68 Pac. 954, 92 Am. St. 864, 58 L. R. A. 293, that the acceptance of a sum of money from one joint tort feasor in satisfaction of a claim for damages, and the execution of a release of such joint tort feasor of all damages by reason of the injuries inflicted, operates as a release of the other joint tort feasor, though the parties to the agreement may stipulate that the release of one shall not discharge the other. The rule of that case is restated in Randall v. Gerrick, 93 Wash. 522, 161 Pac. 357, L. R. A. 1918D 179, as follows:

“It is the settled rule in this state that the acceptance of money in satisfaction of a claim against one [568]*568joint tort feasor, even with a reservation that it is not to be considered as a release of another joint tort feasor, operates to release the latter.”

It was held, however, that that case was distinguishable from the Abb

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Cite This Page — Counsel Stack

Bluebook (online)
192 P. 955, 112 Wash. 563, 1920 Wash. LEXIS 772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/betcher-v-kunz-wash-1920.