Comer v. Davied

111 P.2d 1104, 153 Kan. 536, 1941 Kan. LEXIS 169
CourtSupreme Court of Kansas
DecidedApril 12, 1941
DocketNo. 35,109
StatusPublished

This text of 111 P.2d 1104 (Comer v. Davied) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Comer v. Davied, 111 P.2d 1104, 153 Kan. 536, 1941 Kan. LEXIS 169 (kan 1941).

Opinion

The opinion of the court was delivered by

Smith, J.:

This was an action on a promissory note. Judgment was for the plaintiff. Defendant appeals. '

The petition alleged that on or about May 26, 1933, defendant executed a promissory note payable to plaintiff in the amount of $1,000 due six months thereafter; that the note was past due and had not been paid. Judgment was asked for the amount of the note, with interest.

The answer of defendant admitted the execution of the note but denied that it was for a valuable consideration and that there was due plaintiff from the defendant any sum at all. The answer then alleged that the note was entirely without consideration, and set out the following circumstances under which the note was executed: Father .Verdan died and his will was admitted to probate in Crawford county; that the defendant was made executrix of the will; that she employed the plaintiff to assist her as attorney for the executrix; that Father Yerdan had been the owner of certain bonds of the Terrill Bond and Mortgage Company of the value of $21,000; that he had exchanged these bonds for stock in the company, that plaintiff had appraised the stock as worthless and as attorney for the defendant as executrix of the estate procured the return of these bonds which were worthless in exchange for the stock; that on May 26, 1933, she paid plaintiff $200 and executed the note sued on; that she did not realize that what was being done was for her as executrix of the will and not individuallly; that whatever she owed the plaintiff was as executrix, not as an individual; that when the estate was [537]*537closed plaintiff was allowed $250 for his services to the estate; that this $250 was more than adequate for all the services of plaintiff in handling the personal estate of Father Verdan.

For further defense, the answer alleged that defendant was seventy-three years old; had had no business experience; that plaintiff was a bright young lawyer and married to a niece of defendant and defendant reposed great confidence in plaintiff; that Father Verdan made defendant the principal beneficiary under his will; that the inventory of the estate prepared by plaintiff showed it to consist of real estate of the value of $7,550 and personal property of the value of $282.45; that Father Verdan held certain stocks of the Terrill Bond and Mortgage Company, which he had received for certain bonds in such company, of the face value of $21,000; that these stocks were worthless; that on the advice of plaintiff the defendant permitted plaintiff to procure the return of these bonds; that plaintiff did this by writing letters and without bringing any action; that these bonds were worthless and plaintiff knew, or should have known, they were of little value; that by reason of the relationship existing between plaintiff and defendant and defendant’s lack of understanding of what was a reasonable charge for such work, she paid plaintiff $200 cash and gave him the note for $1,000 sued on in this action. An allegation was made as to a partition suit which had been brought by plaintiff for the benefit of defendant, but this allegation was stricken out on the motion of plaintiff. Later defendant amended her answer to allege that she was induced by a mutual friend to hire the plaintiff; that the only reason she employed plaintiff was because he had married her niece, by which plaintiff became a part of defendant’s family; that she was unable to state when she discovered the bonds were worthless other than to state that she had trusted the matter to plaintiff, and that she did not know that the bonds were worthless at the time of the execution of the note sued on; that defendant was unable to state when plaintiff discovered that the bonds were of little value.

For reply, the plaintiff alleged that defendant had at all times admitted to the plaintiff that the note sued on in this action was a valid obligation; that she had promised at various times to pay it' and that while plaintiff denied that there was any fraud in the inception of the note, if there had been fraud the defendant by her conduct and her promise to pay the note made after she had discovered the fraud had thereby waived it.

[538]*538There are some facts about which there is very little dispute. The defendant in this action had been the housekeeper for Father Yerdan, a priest in Crawford county, for about fifty years. He had extensive dealings with a corporation known as the Terrill Bond and Mortgage Company, an Illinois corporation. Up to a short time before he died he had owned $21,000 of the bonds of this company. The interest on these bonds had been paid regularly semiannually, and defendant had also owned some bonds of the same company. A year or two before he died they had exchanged these bonds for stock in a new company of the same name, a proposed corporation. Defendant and Father Verdan had also traded some real estate owned by them in Illinois for stock. Just a few months before he died he and this defendant both made up their minds that they would rather have bonds than stock. Nothing was done about it, however, until after the death of Father Yerdan. There is no dispute but that after the death of Father Verdan defendant as executrix of the estate of Father Verdan — of which she was the chief beneficiary — did employ plaintiff, who had married her niece, to be her lawyer and also to bring about the exchange of the stock held by her. The dispute in the case centers about the question of whether the employment as attorney for the executrix was a transaction separate from her employment of him personally, and whether he knew the bonds were of doubtful value at the time the note was signed. This will be discussed later in this opinion.

All parties admit that plaintiff secured the exchange of bonds for the stock and brought the bonds to defendant in person and delivered them to her. At that time the matter of compensation was brought up and plaintiff told defendant that he would charge five percent of the gross amount of the $22,000 worth of bonds, which would be $1,200. After some talk she gave him $200 and the note for $1,000, which is in controversy here.

The trial court made extensive findings of fact about as they have been detailed here. The court then found that the plaintiff never did hold out that he was a financial expert, but from time to time gave defendant advice with reference to the exchange of stock for bonds. The court also found that the plaintiff at all times treated and considered the recovery of the bonds as a transaction separate from the affairs of the estate, and that the plaintiff, did not know of the value of the bonds when he recovered them for defendant, or when the note sued on was given; that the probate court of Craw[539]*539ford county allowed Comer $250 as attorney’s fees for his services in the handling of the estate, and that sum was paid him by the defendant and was the only attorney’s fee allowed by the court, and that at the time of the allowance of this fee the probate judge had no knowledge of the $200 paid the plaintiff at the time the note was given. The court also found plaintiff was acting in good faith throughout the entire transaction. The court made the following conclusions of law:

“1. At the time the note in question was given, the parties entered into a valid contract for the payment of services theretofore rendered and completed.
“2. That the defendant was personally liable to compensate the plaintiff for the services so rendered.
“3.

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Bluebook (online)
111 P.2d 1104, 153 Kan. 536, 1941 Kan. LEXIS 169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/comer-v-davied-kan-1941.