City National Bank of McAlester v. Edwards

1924 OK 695, 229 P. 487, 100 Okla. 202, 1924 Okla. LEXIS 971
CourtSupreme Court of Oklahoma
DecidedSeptember 16, 1924
Docket14086
StatusPublished
Cited by8 cases

This text of 1924 OK 695 (City National Bank of McAlester v. Edwards) 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
City National Bank of McAlester v. Edwards, 1924 OK 695, 229 P. 487, 100 Okla. 202, 1924 Okla. LEXIS 971 (Okla. 1924).

Opinion

Opinion by

PINKHAM, C.

This was an action brought by the plaintiff in error, the City National Bank of McAlester, as plaintiff against the defendant in error, Sarah J. Edwards, on a promissory note in the sum of $6,500, dated April 3, 1913, due 60 days after date, which note had been reduced to $3,087.33 at the time suit was commenced thereon on the 28th day of March, 1916.

The answer of defendant admits the execution of the note and then alleges in minute detail the facts and circumstances which induced the defendant to sign the note in question, and alleges that if proper credits are' made thereon said note would be fully settled.

The case was submitted to a jury and a verdict returned in favor of the defendant. Motion for a new trial was overruled, judgment entered in favor of the defendant, from which judgment the plaintiff has duly appealed.

There are a number of assignments of error, all of which are submitted and discussed in .the brief of plaintiff, the City National Bank of McAlester, under three propositions.

The first proposition is that the material defensive matter pleaded, in the answer ’ of defendant together with evidence of the defendant and of certain witnesses was incompetent and not defensive for the reason that the same were verbal, contemporary agreements and could not change and vary the expressed terms of a ■ written contract.

So" far' as this first proposition is concerned we think it is not necessary to discuss the evidence introduced on the trial because of the fact that this case has been before this court upon substantially the same state of facts as in the present record (Edwards v. City National Bank, 83 Okla. 204, 201 Pac. 233) and the-question as to the competency of this evidence was decided adversely ■ to plaintiff’s contention.

It appears that on the first trial of this case in the district court the plaintiff bank made proof of the execution of the note and rested, whereupon the defendant introduced her evidence in support of the allegations of her answer. The plaintiff offered *203 no evidence in rebuttal thereto and the plaintiff demurred to the evidence of defendant as not constituting a defense to the plaintiff’s action on the note,' which demurrer was sustained by the trial court. The plaintiff moved the court to instruct the jury to return a verdict in favor of the plaintiff for the amount of the note sued upon, whereupon the court directed the jury to return a verdict in favor of the plaintiff.

■ T’he court was then requested to sustain the attachment upon the residence. of the defendant and the same was done.. The defendant' appealed to this ■ court.; ■■■ -.

. In the .first paragraph of the .syllabus, in . Edwards ;.v. City- National Bank, supra, it is sard; .......

.. “The rule. that . 9.. .written.; contract cannot be altered, changed, or terms varied,, in the absence of ..¡allegations and ..pjosofs pf .¡the mistake, fraud, or failure"' of consideration, by pkrol proofs'; ddfes' n'ot appfty-’inya-riably 'and without exceptions' ahchonesofi .those, exceptions is that where'*»-..transaction; is- entered-.into-between paities, .tbe-.te^rqs, of,, which are yet to be carried .put,,.in ..Other words, are executory,' as future" convenahts' and promises, some provisions of which are verbal-and some: one-or-more are 4n writing, the above rule - as- To varying,,the terms, of a- contract, does , not apply - and. the parol terms and provisions of said contracts, may be proved, and this is upon "the theory that the máiñ transaétion- rests in : parol'" and the written portion being! an incident connected with the main transaction.”.- *-.

In the bo’dy of the opinion' it is said:

“We have reviewed and examined the evidence and find that under the pleadings and proofs produced and uncontradicted the defendant has made proofs supporting the answer,, and that-in the absence of any rebuttal proofs the trial court committed error in sustaining the demurrer to .the evidence and in instructing a verdict for the plaintiff bank.”

In reviewing the cause this court announced the rule applicable to this case as follows:

“The rule which excludes párol evidence when offered to contradict or vary the -terms, provisions, or legal effect of written instruments has no application to collateral- undertakings or cases in which the. written instrument was executed in part performance of an entire oral agreement.” Stuart v. Myers (Tex.) 196 S. W. 615; Goldstein v. Union Nat’l Bank (Tex. Civ. App.) 216 S. W. 409.

It is contended by the plaintiff that the facts as they now exist under the present record, the rebuttal evidence of the plaintiff having been introduced, are entirely, different from the facts as they appeared un-contradicted in the former record.

' The former record discloses, as does the present record, that the transaction between the plaintiff bank, represented by its president, Mr. Craig’ Ben Durfee, and' the defendant, Mrs. Edwards, resulted in a verbal understanding and ’ agreement constituting a comprehensive plan for the handling <;f the' financial affaiis of the mercantile firm of which the defendant’s son-in-law, Ben : Dur-fee,' was a partner, and that the taking, of the note ih question was one of - the incidents 'connected with the said plan. =. ;

This plan is set out and'discussed in Edwards v. City National Bank, supra, and as heretofore stated; need not here bei -restated further than .to say that. it..appears ftorn • the evidence' that the - firm-'‘of-.-Ben Diirfee' & Co. was adjudged -bankrupt';: that 'Ben: Durfee wasuhdebted tova;.considerable •extent to the plaintiff bank*-.'that."’the ©ffesi-'dentof the bank, ‘Mr. -Craig, andjassithgcfor it;-consulted'with and- adviseduB'enjaDuifee, whose firm deposited their.- funds-min .the the plaintiff bank, as-to the course: to-be- pursued in the circumstances; .that,:asi ft’-result Of such-advice and'.consultatip.n át whs concluded that- if the -firm,- or rBéíuBHlrfeé-'.ccíuld 'borrow some* .$6,599, -a *30i r?perscent,'''eoxBipo-sition ■ in bankruptcy' would - he... hady;iwith the creditors; that the: store-already -owed the hank up to the legal limit — otherwise the bank would máké the'ioáiii' direct _to Ben Durfee or the company.."' ‘

In this situation -the defendant was',.approached by the bank .president,, and.¡Ben Durfee, and asked, to sign the note upon the understanding that' the 30 per cent.' composition would enable the business of her son-in-law to continue, after which it was represented to her a purchaser of the store would, as soon as possible, be secured, and ■that from the proceeds of the sale, Which .would he handled entirely by the bank president, the note of- the defendant would- be paid. *. - ' ■

Acting under this understanding and agreement between Mr. Craig, Ben Durfee, and the defendant, which arrangement, as before stated, was not in writing, the note in question was signed by the defendant.

The store was operated for some months after the .30 per cent, composition. “The ’business it appears was again running)1'behind and Mr. Craig and Ben 'Durfee were desirous to secure a purchaser for the busi- - ness.

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Bluebook (online)
1924 OK 695, 229 P. 487, 100 Okla. 202, 1924 Okla. LEXIS 971, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-national-bank-of-mcalester-v-edwards-okla-1924.