Bowman v. Wade

103 P. 72, 54 Or. 347, 1909 Ore. LEXIS 53
CourtOregon Supreme Court
DecidedJuly 27, 1909
StatusPublished
Cited by13 cases

This text of 103 P. 72 (Bowman v. Wade) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowman v. Wade, 103 P. 72, 54 Or. 347, 1909 Ore. LEXIS 53 (Or. 1909).

Opinions

Mr. Justice Slater

delivered the opinion of the court.

1. The first assignment of error relied upon by defendant for a reversal of the judgment is based upon the admission, over his objection and exception, of the parol testimony of the plaintiff of the circumstances of the making of the loan and defendant’s agreement to repay the money three years after the date of the transaction. The substance of the objection is that the contract upon which the action is founded is one which was not by its terms to be performed within one year from the making thereof, and is within subdivision 1, Section 797, B. & C. Comp., commonly designated as the “statute of frauds.” It appears from the testimony that no note or memorandum of the contract, expressing consideration, was made in writing subscribed by the defendant,. and if the agreement is within the statute, as claimed by the defendant, it could not be established by parol testimony in an action to recover on such contract.

There is much disagreement among the authorities as to whether or not a complete performance of an agreement upon one side at the time of its making, the performance of which by the other party is not to take place within a year, will take the case out of the statute. It is said that the adjudicated cases are incapable of reconciliation on principle, but that the decided preponderance of authority is in favor of the validity of a parol contract which has been fully performed upon one side at or near the time of its making, although the execution thereof by the other party is deferred for a longer period than one year: Smith, Law of Fraud, § 352. And especially is this the case where the stipulation sought to be enforced related solely to the payment of a money consideration. In such cases it is a mere point of form in bringing the action; the plaintiff’s right to recover on the indebitatus assumpsit being clear: Browne, Statute of Frauds (5 ed.), § 290; Pierce v. Paine’s Estate; 28 Vt. 34; Emery v. Smith, 46 N. H. 151; Durfee v. O’Brien, 16 [351]*351R. I. 213 (14 Atl. 857). A full citation and review of the authorities on both sides of this controverted question may be found in an extended footnote to section 352 on pages 436-447 of Mr. Smith’s recent work on the Law of Fraud. After a careful perusal thereof, we are of the opinion that on principle and weight of authority the contract now under consideration is not within the statute. We are brought to this conclusion chiefly by what was said in McClellan v. Sanford, 26 Wis. 595. After stating the principle there involved — which is substantially the same as here — and the attitude of the authorities thereon, Mr, Chief Justice Dixon says: “It will be observed, on examining these cases, that in some the question was nearly identical with the present, except that the promise was not evidenced by anything written in the deed, and that in all it was held that a verbal promise to pay beyond the year, if made upon an executed consideration, whether lands conveyed or goods and chattels sold and delivered, or other consideration of valué, is valid. The doctrine of these cases is that the provision of the statute now being considered applies only to contracts not to be performed on either side within the year. * * The cases holding to the opposite rule that, whilst they adhere to a strict and literal construction of the statute in order to close the door to the mischiefs which they suppose the statute was designed to prevent by excluding parol evidence after the lapse of one year, they yet seem to leave the door wide open to the same mischiefs by allowing parol evidence to be introduced to show what the contract was, and what was the price or sum agreed to be paid, for the purpose of enabling the promisee or creditor to recover upon a quantum meruit or quantum valebat. The advantage of this course of decision is not perceived, and, if it were, we should not be inclined to depart from a rule already laid down, especially when it is sustained by so much and such respectable authority.” Substantially the same principle [352]*352is stated in Durfee v. O’Brien, 16 R. I. 213 (14 Atl. 857), that “If the recovery be upon a quantum meruit count, still the contract is admissible as evidence to show what the defendant admitted and declared the consideration to be worth.”

2. It is conceded by counsel for defendant that, if plaintiff in fact loaned the money to defendant upon the terms stated in the complaint — which we must assume that the jury found — and that if it were held to be within the statute, yet he may recover, not upon the contract, but for money had and received, if the complaint be so framed; and this is undoubtedly held by many authorities, including Keller v. Bley, 15 Or. 433 (15 Pac. 705) ; Pierce v. Paine’s Estate, 28 Vt. 34; Swift v. Swift, 46 Cal. 266; Moody v. Smith, 70 N. Y. 598; Whipple v. Parker, 29 Mich. 369; Bennett v. Phelps, 12 Minn. 326 (Gil. 216). The complaint states the fact of plaintiff’s having paid the money to the defendant, and the purpose for which it was done, which negatives that the payment was made to liquidate any liability or obligation which the formér owed to the latter, or that it was intended as a gift. Under such circumstances the law imposes an obligation to repay the same within a reasonable time, with legal interest. The verdict and judgment are for such an amount, and not for the amount of interest contracted to be paid. In our opinion the evidence was admissible, and in any view of the case there was no prejudicial error in admitting it.

The motion for a directed verdict involves the same theory of the defense, and it was therefore properly denied.

3. The remaining question for consideration is the refusal of the court to discharge the attachment. It was secured upon the plaintiff’s affidavit, which states, in effect, that the debt claimed to be due had not been, and at the commencement of the action was not, secured by any mortgage, lien, or pledge upon real or personal prop[353]*353erty. The facts with reference to the giving by William N. Wade, at the instance of defendant, of the note and mortgage as a pretended security for the debt, are set forth; but it is averred that the same were fraudulent and void at the time they were given, for the reasons that neither the defendant nor his son had any title, legal or equitable, to the premises attempted to be mortgaged, and that the son was at the time mentally incapable of contracting. The reasons assigned in the motion of the defendant for the dissolution of the attachment, with one exception, are mere generalities, such as: That the affidavit filed herein does not comply with the statute (but in what respect is not pointed out) ; that it appears from the amended complaint that plaintiff is not entitled to the writ; and that the action is not such a one as would entitle plaintiff to an attachment. But it is therein alleged that it appears from the amended complaint that plaintiff has a mortgage to secure the debt sued upon, and that the same is now existent. In support of the motion, the affidavits of William N. Wade and Joe H. Parks are filed.

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Cite This Page — Counsel Stack

Bluebook (online)
103 P. 72, 54 Or. 347, 1909 Ore. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowman-v-wade-or-1909.