Chiles v. Mann & Mann

400 S.W.2d 667, 240 Ark. 527, 3 U.C.C. Rep. Serv. (West) 433, 1966 Ark. LEXIS 1344
CourtSupreme Court of Arkansas
DecidedMarch 28, 1966
Docket5-3791
StatusPublished
Cited by8 cases

This text of 400 S.W.2d 667 (Chiles v. Mann & Mann) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chiles v. Mann & Mann, 400 S.W.2d 667, 240 Ark. 527, 3 U.C.C. Rep. Serv. (West) 433, 1966 Ark. LEXIS 1344 (Ark. 1966).

Opinion

Ed. F. McFaddin, Justice.

Appellee sued appellant on a promissory note. The answer was a general denial.’ The original note was introduced in evidence and appellant admitted his signature, but sought to show that he signed as president of a corporation. The Trial Court refused to allow the appellant to present such evidence under the general denial and instructed a verdict for the appellee. From judgment on the verdict, appellant prosecutes this appeal, and urges two points:

“I. The Trial Court erred in holding appellant to be personally liable on this note.
“II. If an amendment to the answer was necessary to permit the introduction of the evidence offered by appellant and rejected by the Trial Court, it was error not to permit the amendment.”

I.

The original note sued on was introduced in evidence, and the germane portion reads:

“Osceola, Ark. February 22, 1964
“December 15th, 1964, after date, I promise to pay to the order of Mann & Mann, Inc., Osceola, Arkansas Sixty-Five Hundred FortyrSeven & 62/100 Dollars with interest thereon at the rate of 6 per cent from Date. Value Received, Negotiable at Osceola, Arkansas
“Chiles Planting Company, By: E. B. Chiles, Jr.”

Appellee offered evidence that the note was for value received, was signed by the appellant, was past due, and had not been paid;-and then appellee rested. Appellant admitted that he signed his name, “E. B. Chiles, Jr.”, on the note, but sought to. show that Chiles Planting Company was the name of a corporation of which he was president and majority stockholder; and that he signed the note in such capacity. The Trial Court held that since a general denial was the only pleading filed by the defendant, he could not offer testimony as to the corporation and as to his intentions in signing the note.

There are several reasons why the Court was correct in this ruling. The first relates to the rules of pleading: i.e., under a general denial testimony of confession and avoidance cannot be heard such as here: the defendant confesses his act of signing the note but seeks to avoid the effect by claiming he signed as an officer of a corporation. Some of our cases showing the limited evidence that may be offered under a general denial are: Grier v. Yutterman, 102 Ark. 433, 145 S. W. 194; and Shirk v. Williamson, 50 Ark. 562, 9 S. W. 562. Our cases are in accord with the general rules as regards pleadings. In 41 Am. Jur. 396, “Pleadings” § 149, the text reads: “Like the general issue, the general denial operates as a denial of every material allegation of the complaint as fully as if it had been specifically and separately denied.....It covers defenses which go to destroy the plaintiff’s cause of action, but not those which are grounded on new matter or matters in avoidance or other defense that must be specially pleaded.” (Emphasis supplied.) And in § 155 of the same text the general holdings are summarized: ‘ ‘ Since the plaintiff must apprise the defendant in the beginning as to what he relies upon for a recovery, it is only right that the defendant should be required also to inform the plaintiff of any special or affirmative defenses he expects to make by pleading the facts constituting such defenses.....”

An enlightening case on both of the points in this appeal is that of Bluff City Lbr. Co. v. Hilson, 85 Ark. 39, 107 S. W. 161. Hilson sued Bluff City Lumber Company for the claimed balance due on a purchase contract which was for “all the lumber of said firm, mill run .... at the price of $10.50 per thousand feet.” The defendant denied any such contract. After the plaintiff had concluded his evidence, the defendant offered the witness Ritchie to testify as to the grades of the lumber shipped. The Trial Court refused to allow such evidence as being outside the issue tendered by the defendant’s answer. In affirming the ruling of the Trial Court on this point, we said:

“Error of the court is also assigned in its refusal to permit witness Ritchie to testify concerning* the grades of the lumber shipped. Under the issues presented by the pleadings, it was not proper to admit evidence on this subject. The defendant’s answer tendered no issue as to the grade, quality or quantity of the lumber alleged to have been sold and delivered. The answer denied that defendant had purchased any lumber from plaintiff, and alleged that the lumber had been shipped without authority, and was accepted by defendant only on written agreement that it should sell the lumber for the best price it could obtain and account to J. & H. Hilson for the proceeds. The defendant failed to sustain that defense, but attempted to introduce proof tending to sustain a wholly different one, not raised by the pleadings. The court was correct in excluding it.”

A second reason showing the correctness of the ruling of the Trial Court is found in our own holdings. In First National Bank v. J. H. Snyder Manufacturing Company, 175 Ark. 1134, 1 S. W. 2d 817, the note was signed, “J. H. Snyder Mfg. Co., W. H. Snyder.” When sued on the note W. H. Snyder sought to show: that J. H. Snyder Manufacturing Company was a corporation ; that W. II. Snyder was its president and manager; that W. H. Snyder signed the note as an officer of the corporation and did not intend to become personally liable. This Court, in an Opinion by Chief Justice Hart, held that such testimony by W. H. Snyder was not to be heard as it was an attempt to vary by parol evidence the terms of the written note. He said:

“The signatures are ‘J. H. Snyder Mfg. Co., W. H. Snyder.’ The signatures do not indicate whether J. H. Snyder Mfg. Co. was a trade name, partnership, or corporation. There is no designation by W. H. Snyder that he signed as an officer or agent by any word. We are of the opinion that there was no ambiguity in the note, and that the circuit court erred in admitting parol evidence to show that W.- H. Snyder signed the note as attesting officer of J. H. Snyder Manufacturing Company, a corporation, of which he was president, and that there was an understanding between him and the hank that the corporation alone was to he liable on the note.”

Here, the appellant, E. B. Chiles, Jr., did not show on the note that he was signing in any capacity as officer of anything. The only signature—‘ ‘ Chiles Planting Company by E. B. Chiles, Jr.”—meant that Chiles Planting Company was the trade name of E. B. Chiles, Jr., and he could not offer parol testimony to vary that meaning. 2

Appellant insists that, even if the Arkansas cases are as above stated, nevertheless such cases have been changed by the adoption of the Uniform Commercial Code, which is Act No. 185 of 1961; and appellant particularly refers us to Ark. Stat. Ann. § 85-3-403 (Add. 1961), the germane portion of which reads:

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Bluebook (online)
400 S.W.2d 667, 240 Ark. 527, 3 U.C.C. Rep. Serv. (West) 433, 1966 Ark. LEXIS 1344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chiles-v-mann-mann-ark-1966.