Butterick Co. v. Molen

1943 OK 202, 138 P.2d 89, 192 Okla. 602, 1943 Okla. LEXIS 253
CourtSupreme Court of Oklahoma
DecidedMay 25, 1943
DocketNo. 30874.
StatusPublished
Cited by10 cases

This text of 1943 OK 202 (Butterick Co. v. Molen) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butterick Co. v. Molen, 1943 OK 202, 138 P.2d 89, 192 Okla. 602, 1943 Okla. LEXIS 253 (Okla. 1943).

Opinion

PER CURIAM.

This action was instituted on February 7, 1940, by the Butterick Company, Inc., hereinafter referred to as plaintiff, against James I. Molen, Tom Sowell, and S. L. Molen, hereinafter referred to as defendants, to recover a balance alleged to be due upon account for goods, wares, and merchandise which had been sold and delivered pursuant to a written contract which had been entered into on August 6, 1935, between plaintiff and Molen Bros, by Tom Sowell. The action as framed was one for money judgment based upon the contract. The defendants denied that the contract was their contract and alleged that it was the contract of a corporation of which Tom Sowell was secretary, treasurer, and manager and the other defendants were president and vice president, respectively. The cause was tried to the court without the intervention of a jury. The evidence adduced at the trial disclosed, that the correct name of Mo-len Bros, was Molen Brothers Dry Goods Company, a corporation, and that defendants were the stockholders, officers, and directors of said corporation; that at the time the contract here involved was entered into Tom Sowell was the manager of the store located in Clinton, Okla.; that the goods, wares, and merchandise were purchased pur-* suant to said contract for sale in said store, and that payments therefor were made under the provisions of said contract to the plaintiff by checks of the corporation until 1938, when the stock of merchandise in the store, and which inventoried approximately $13,000, was turned over to an attorney in St. Louis, Mo., for the purpose of liquidating said stock and paying creditors whose claims aggregated approximately $6,500; that the liquidating agent had tendered plaintiff approximately 2 per cent of the amount, of its claim, and that it had refused to accept the same, and thereupon instituted this action seeking to hold the defendants liable upon the contract as their individual obligation. *603 The evidence further showed that the only store in Clinton which was doing business under the name of Molen Bros, was that of the corporation, and that the defendants were never engaged in business individually, but were at all times so engaged as officers and directors of the corporation whose correct name was Molen Brothers Dry Goods Company, a corporation. Upon the evidence, substantially as above narrated, the trial court found that the contract involved was that of the corporation and not that of the defendants individually, and rendered judgment in accordance with such finding. The plaintiff appeals.

As grounds for reversal of the judgment plaintiff urges the following propositions:

“1. The trial court erred in overruling plaintiff’s demurrer to the original answer, motion for judgment, demurrer to amended answer and renewal of motion for judgment, objection to any evidence in support of the amended answer, for the reason that said answer raised no issue and stated no defense.
“2. The court erred, after discharging the jury on the grounds that qnly a question of law was involved,' in thereafter proceeding to trial at a non-jury term, upon the issue presented in the fourth paragraph of the amended answer, said defense being only an attempt to contradict the terms of a written contract and thereby shift the liability from defendants to said insolvent dead corporation.
“3. Even if the contract were a corporation contract, still, under the testimony of defendant, James I. Molen, president of said corporation, the defendants would be liable: (1) Under the statutory trust fund doctrine (secs. 9763, 9788, 9789); (2) Under the common law trust fund doctrine for mismanagement, diversion and waste of assets, and (3) as partners, they having changed the name of the corporation in violation of sec. 9732, O. S. 1931.
“4. Defendants having invoked the equity powers of the court by the allegations of said 4th paragraph of the amended answer, permitting them to substitute said corporation in their place, and the court having received their evidence in support of that defense, the defendants, by their own affirmative action, created and accepted the relation of trustee for the benefit of creditors, and they were required to properly execute that trust, and would not be permitted to dispose of the total assets without receiving a dime for the same, to the detriment of plaintiff as a creditor, and the trial court committed error in refusing to so decree, regardless of the form of the action or the pleadings involved.”

Under the first of the above propositions plaintiff argues that the verified amended answer of the defendants by admitting that the contract had been executed in the name of Molen Bros, by Tom Sowell, thereby admitted the individual liability of the defendants and precluded them from introducing any evidence which would tend to establish a contrary situation. In support of the contention so made plaintiff directs our attention to 49 C. J. 269 § 335; Caldwell v. Baxter, 158 Okla. 76, 12 P. 2d 509; Puritan Mfg. Co. v. Toti & Gradi, 14 N. M. 425, 94 P. 1022 (which enunciate the rule that a verified general denial does not place in issue the execution of an instrument, and which are without application here for the reason stated in Bradshaw v. Sexton, 172 Okla. 204, 44 P. 2d 80, and Henryetta Spelter Co. v. Guernsey, 82 Okla. 71, 198 P. 495). Plaintiff also directs our attention to a number of texts and decisions which are authority for the general rule that parol evidence to vary or contradict the terms of a written instrument is not permissible where the instrument is complete upon its face. Plaintiff also cites Weagant v. Camden, 37 Okla. 508, 132 P. 487; Finley v. Exchange Trust Co., 183 Okla. 167, 80 P. 2d 296, and a host of other cases which are authority for the rule that where an instrument does not indicate anything to the contrary, it is to be considered the obligation of the per- ■ •sons whose names appear thereon, and parol evidence to establish a different result is not permissible. The rule so announced is sound and applies to the situations in which they were used, *604 but we deem the same wholly without application to the facts involved in the case at bar. The contract here under consideration discloses on its face that it was not intended to be an individual obligation but rather the obligation of a firm designated as Molen Bros. The plaintiff in its pleadings recognized. the fact that the instrument as written was not complete and alleged in its petition that the signature so appended to the contract was intended to make it the contract of James I. Molen, S. L. Molen, and Tom Sowell as individuals engaged in business together. This placed in issue something more than the execution of the contract and raised the question as to by whom the contract was executed.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fink v. Montgomery Elevator Company of Colorado
421 P.2d 735 (Supreme Court of Colorado, 1966)
Maryland Casualty Company v. Willsey
1963 OK 4 (Supreme Court of Oklahoma, 1963)
French v. Leachman
258 P.2d 1204 (Supreme Court of Oklahoma, 1953)
Sims v. Bennett
1953 OK 114 (Supreme Court of Oklahoma, 1953)
Le Gate v. Beck
1948 OK 143 (Supreme Court of Oklahoma, 1948)
Fenimore v. State ex rel. Com'rs of the Land Office
1948 OK 93 (Supreme Court of Oklahoma, 1948)
Butterick Co., Inc. v. Molen
1946 OK 359 (Supreme Court of Oklahoma, 1946)
Dryden v. Burkhart
1946 OK 343 (Supreme Court of Oklahoma, 1946)
Anselman, Adm'r v. Oklahoma City University
1946 OK 161 (Supreme Court of Oklahoma, 1946)

Cite This Page — Counsel Stack

Bluebook (online)
1943 OK 202, 138 P.2d 89, 192 Okla. 602, 1943 Okla. LEXIS 253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butterick-co-v-molen-okla-1943.