Conger v. Lee

175 Iowa 423
CourtSupreme Court of Iowa
DecidedApril 7, 1916
StatusPublished

This text of 175 Iowa 423 (Conger v. Lee) 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
Conger v. Lee, 175 Iowa 423 (iowa 1916).

Opinion

Evans, C. J.

The chief controversy in the case is over a question of fact. At the close of the evidence, the defendant moved for a directed verdict, on the general ground that the plaintiff had failed to- prove the alleged contract and had failed to prove performance of any alleged contract on his own part. This question is extensively discussed in the briefs, and involves the consideration- of a considerable record. The parties were residents of Sac City. The subject matter of the contract had to do with the interest of the plaintiff in the Conger-Ball Company, a corporation doing business at Sac City. This company was originally capitalized at $34,000, divided into stock shares of $100 each. The plaintiff owned 231 shares thereof; W. A. Ball, 59 shares; and Láveme Lee, a son of the defendant, 50 shares. This company engaged in two separate lines or departments of business. The one is known in the record as the ‘ ‘ elevator business, ’ ’ and the other as the “seed business. Prior to the transaction here involved, they had sold out the elevator business, but still retained the seed business. They had not changed the form of their capitalization.

The claim of the plaintiff is that he undertook to sell to defendant his interest in the seed business, which was still being carried on by the company. The active management of this business was conducted by Ball and Láveme Lee, the plaintiff having recently removed to California. The evidence for the plaintiff tended to show that the parties agreed upon a .basis of valuation of plaintiff’s so-called interest in the seed business, by ascertaining the value of the assets pertaining.-to such department. A total valuation of such assets was-[425]*425agreed upon at $8,000. The par value of plaintiff’s interest, therefore, was taken to be 231/340 of $8,000, or about $5,433. The defendant agreed to pay the plaintiff 80% of such estimated par value, and this is the amount sued for. There were some apparent complications involved in the negotiations; that is to say, the evidence as to some details is somewhat confusing to a stranger to the record. Conger was indebted to the corporation for something upwards of $20,000, subject, however, to certain prospective offsets or credits. The price to be paid by the defendant was to be so paid to Ball, and was to be applied by Ball upon the plaintiff’s indebtedness. The plaintiff was to execute to the corporation his promissory note for the balance due from him as soon as such balance was ascertained. The negotiations between plaintiff and defendant were carried on in the presence of and in consultation with both Ball and Láveme Lee. The defendant’s final offer and his agreement upon the valuation of $8,000 was communicated to the plaintiff through Ball, and was accepted by the plaintiff by communication to Ball. The delivery of plaintiff’s stock was to be made to Ball. Ball was also to prepare and send to plaintiff in California a full statement of his account with the corporation, so that the amount of the note to be executed by plaintiff could be determined therefrom.

Among the assets of the corporation were about $1,400 of accounts and notes, which were of more or less doubtful value. The plaintiff had agreed to assume the payment of these notes and accounts himself and to look to the debtors for reimbursement. The negotiations between the parties up to this point were had at Sac City, in October, 1913. Within a few days, the plaintiff departed for his home in California. Later, he received from Ball, by mail, a statement of his account, which carried an item of credit of $4,348.26 as the valúe of “Seed Dept, stock @ 80^.” This statement showed a balance due to the corporation from plaintiff of something over $4,900. The plaintiff sent to Ball by mail his -promissory note for such amount, and sent to him all his stock-[426]*426endorsed in blank. This was done in November, 1913. Just before this was done, some correspondence ensued between the parties which will be referred to later, and upon which each party relies as furnishing support to his own theory. We think that, at the time of the departure of the plaintiff, the evidence is abundant to justify a finding that the parties had reached an agreement along the lines herein indicated. The following excerpts from the evidence on behalf of plaintiff will be sufficient indication of the details of the testimony. Ball testified as follows:

“I am the Ball represented in Conger-Ball & Company. I was secretary and manager. Mr. Conger, Mr. Láveme Lee and myself are the persons who were interested in that company prior to October 1, 1913. I had a conversation with Mr, Orville Lee in regard to going over the books of the Conger-Ball & Company to ascertain the then value of its property. I had an appointment to meet Mr. Lee and Mr. Conger up at the office one evening and I think Mr. Conger asked me to come. We all met there. At that time the question of Mr. Lee’s buying the interest of Mr. Conger in that institution was gone over more or less. Afterwards Mr. Lee and I figured up the then value of the Conger-Ball & Company property. I think we met there twice. Mr. Lee and I met there- together at another time. I figured that the said business was worth $8,000. Mr. Conger owned 231/340 of it. Mr. Lee told me to offer 80e on the dollar for the stock. I communicated this statement of Mr. Lee’s to- Mr. Conger. Mr. Conger thought it was pretty cheap but he says: ‘.I am going to be. away and I am going to sell it. ’ I, communicated Mr. Conger’s answer to Mr. Lee. I can’t tell you exactly.what ■Mr. Lee said. I cannot give the exact wording but in substance he said that was satisfactory to him. When we all met there together it was suggested by Mr. Conger or. Mr, ¡Lee, .1 don’t remember.which, that the certificates when they,.jvere sent back, they were tq.-be sent to me for transfer. Mr. Lee w.as present and that was agreed upon.. I do .not. know who [427]*427suggested it. There was something said as to what ought to be done with certain old accounts and notes. There were certain accounts that were doubtful, that were to be charged up to Mr. Conger’s account. They were charged up to Mr. Conger’s account. Mr. Conger has paid that. I have seen Exhibit ‘A’ before. It is a statement of Mr. Conger’s account as it appeared on the books of the company at that time. I sent the statement of account to Mr. Conger. Before sending it I submitted it to Mr. Lee. Mr. Lee said: ‘I think that is the way we figured it.’ I received from Mr. Conger his certificates evidencing his interest in this business. After I received, them I called Mr. Lee’s attention to the same. Mr. Lee looked at them. He did not say anything. Q.. I mean this, Mr. Ball. Your evidence shows that the value of the concern was only $8,000 and the original stock was worth $34,000. Now in these conversations and in these deals with Mr. Lee, did you have any talk as to what was to be done with this stock, if anything, in order to make the stock the same as the actual value of the business? A. The stock was to be retired; all but the amount represented by the seed department. Previous to the time I received the stock, Mr. Lee came to the office and took out his cheek book and offered to pay for it. He offered to give his check for the amount. Well, he came in and said: ‘Well, I guess I had better give you a cheek for that stock, hadn’t I?’ I said, ‘You can if you wish,’ and he got his cheek book out and pencil and. was ready to write the check and he turned around and says: ‘Has the stock come yet?’ And I says: ‘No, it hasn’t.’ And he said: ‘Maybe I better wait until it comes.’ After this transaction until Mr. Conger went to California, Mr.

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