Brierly v. Dunnick

39 N.W.2d 645, 240 Iowa 1359, 1949 Iowa Sup. LEXIS 443
CourtSupreme Court of Iowa
DecidedNovember 15, 1949
DocketNo. 47467.
StatusPublished
Cited by3 cases

This text of 39 N.W.2d 645 (Brierly v. Dunnick) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brierly v. Dunnick, 39 N.W.2d 645, 240 Iowa 1359, 1949 Iowa Sup. LEXIS 443 (iowa 1949).

Opinion

Oliver, J.

— Apparently the note was drawn upon a printed form. It was undated. The petition alleged it was executed by defendant to John H. Hendricks, plaintiff’s testate, on or about March 1, 1944. It was for $11,000, provided for interest at seven per cent per annum from date, payable semiannually, and contained other provisions not here material. At the bottom was the statement, “Due March 1-45.” On the back were three endorsements :

“Interest paid March 1-1945
Interest paid in full to March 1, 1946'
Interest paid in full to March 1, 1947.”

The executor prayed judgment for $11,000 with interest at seven per cent from March 1, 1947. Defendant’s answer alleged as an affirmative defense, that on or about October 15, 1943, he-owed Hendricks an unpaid balance of $3,887.07 on a $12,000 note; that Hendricks orally stated he was in difficulty and needed defendant’s note for $11,000 with interest at seven per cent per annum and that if defendant would give him such a note and pay him $440 per year, commencing with 1945, until -the death of Hendricks, Hendricks would surrender the $12,000 note and the $11,000 note would be canceled and surrendered to defendant upon the- death of Hendricks and defendant would not be indebted to- Hendricks after his death, or to his estate; that *1361 Hendricks also stated that upon payment to him of each installment of $440 he would endorse upon said note interest to the preceding March 1; that thereupon defendant agreed to and did on said date sign and deliver to Hendricks the $11,000 note prepared by Hendricks and the $12,000 note was surrendered lo defendant; that defendant paid Hendricks $440 during each of the years 1945, 1946 and 1947 and fully performed the agreement between him and Hendricks; that after the death of Hendricks, in 1947, his executor refused defendant’s request to return said note to defendant; that there was no consideration for the note sued on other than as above stated.

Plaintiff’s reply asserted defendant’s affirmative plea was not a defense because it was an attempt to vary by parol the terms and provisions of the written instrument in suit. Defendant introduced evidence tending to establish the facts pleaded as an affirmative defense. Plaintiff-executor admitted decedent had informed him defendant was paying only $440 per year and not seven per cent as provided by the note. Plaintiff testified decedent made the first endorsement on the back of the note; that plaintiff made the second endorsement at decedent’s request and also the third endorsement after decedent’s death ydien- defendant produced a canceled check made to decedent for $440 which evidenced the fact that interest on the note had been paid to March 1, 1947. No witness for plaintiff attempted to explain why, upon payment of $440, defendant was each year credited with interest for one year. The trial resulted in a verdict and judgment for defendant and this appeal. Plaintiff made no motion for directed verdict nor is it contended the evidence, if admissible, was insufficient to support the verdict of the jury.

I. Plaintiff contends the pleaded affirmative defense and the evidence introduced in support thereof were obnoxious to the parol-evidence rule and that the court erred in overruling his motion to strike that division of the answer and his objections to such evidence. The briefs discuss the legal propositions at some length and refer to various texts and decisions. However, the precise proposition here involved has already been determined by this court.

*1362 In Ball v. James, 176 Iowa 647, 650, 652, 158 N.W. 684, 685, the defense pleaded to a suit by an executor on a note secured by a mortgage was a verbal agreement between decedent and defendant that defendant would take the money represented thereby and pay decedent six per cent interest thereon during decedent’s life and that decedent would will the money to defendant and “ ‘the principal would never have to be paid.’ ”

The decision states:

“These instruments were complete in themselves. The alleged oral undertaking neither added thereto nor detracted therefrom. It did not purport to vary either. It served merely as an inducement to the entering into the written contracts on the terms stated therein. * * * neither the note nor the mortgage recites the consideration, and, though this is presumed as between the parties, it is subject to proof, and the evidence that, in addition to an amount of money loaned, there was an executory agreement, in no manner violates the rule excluding parol evidence tending to vary the terms of a written instrument.”

Another decision in point is Herron v. Brinton, 188 Iowa 60, 65, 175 N.W. 831, 833, which refers to Oakland Cemetery Assn. v. Lakins, 126 Iowa 121, 101 N.W. 778, 3 Ann. Cas. 559, and states:

“In each case, the answer pleads that the real agreement between the parties was for the payment of interest on the sum stated during the life of the payee, and that the note given was made and delivered, not as a promissory note, evidencing»a debt for the amount named, but as evidencing- and securing to the payee the interest o-n the principal sum named, during his lifetime.
“In each case, also, the question of law is raised whether the facts so pleaded state a defense to an action on the note. We there held, in effect, that the plea not only goes to the question of the consideration of the note sued upon, but was also within the rule permitting proof of conditional delivery, as well as the rule which permits parol evidence of the discharge of a written agreement ‘although the transaction involves proof of a collateral parol agreement.’ ”

*1363 Among other eases applying or recognizing the rule áre Sutton v. Griebel, 118 Iowa 78, 91 N.W. 825; Kruse v. Wickham, 228 Iowa 617, 620, 292 N.W. 518; Short v. Anderson, 233 Iowa 238, 243, 8 N.W. 2d 740. We hold the motion and objections based upon the parol-evidence rule were not meritorious and the-orders of the trial court overruling the same were correct.

II. Defendant testified decedent came to defendant’s home in October 1943 and there was a conversation between them concerning a note. He was then asked if Exhibit A (the note in-suit) was the note he signed that evening. The court overruled-plaintiff’s objection to defendant’s competency under the dead man statute, section 622.4, Code of Iowa, 1946, and defendant gave an affirmative answer. Error is assigned to the ruling. ■

In argument plaintiff assumes the signing of the note by defendant was. a personal transaction -between defendant and decedent. However, the record at the time the ruling was made did not definitely show this. Although the trial court might have inferred the note was executed by defendant and delivered to decedent in connection with the conversation, we do not think it was required to draw such inference; Plaintiff could havé‘ shown the circumstances by ■ cross-examination preliminary‘to the objection or, when the circumstances were subsequently disclosed by defendant or other witnesses he could have renewed’ his objections and moved to strike the answer: He did neither. In re Estate of Hoyt, 180 Iowa 1250, 1259, 163 N.W. 430.

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Bluebook (online)
39 N.W.2d 645, 240 Iowa 1359, 1949 Iowa Sup. LEXIS 443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brierly-v-dunnick-iowa-1949.