Consolidated Naval Stores Co. v. Wilson

90 So. 461, 82 Fla. 396
CourtSupreme Court of Florida
DecidedNovember 23, 1921
StatusPublished
Cited by19 cases

This text of 90 So. 461 (Consolidated Naval Stores Co. v. Wilson) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Naval Stores Co. v. Wilson, 90 So. 461, 82 Fla. 396 (Fla. 1921).

Opinion

Ellis, J.

The Consolidated Naval Stores Company brought an action against H. M. Wilson who was endorser upon two promissory notes made by J. J. Summerlin. The two notes were for the sum of three thousand dollars. One of them for two thousand dollars was made July 1st, 1914 and payable December 15th, 1914, the other for one thous- and dollars was made November 28th, 1914 and payable June 15th, 1915. Each note was payable to the order of Consolidated Naval Stores Company hereinafter referred to as plaintiff. Each note provided for the payment of attorney’s fees by the maker or endorser if not paid at [398]*398maturity and should be placed in the hands of an attorney for collection. They contained a waiver by endorser of notice of dishonor or nonpayment and protest. Each note recited that it was in renewal of one or more made by the same maker in favor of the plaintiff and dated January loth, 1914, and secured by mortgage and contract recorded in the clerk’s offices of the Counties of Nassau and Walton in certain books and at certain pages. At the trial the Court directed a verdict for the plaintiff in the sum of $903.59. The verdict was rendered and judgment upon it was entered for the plaintiff which seeks a reversal of it here upon writ of error.

The facts out of which grew the relations of the parties as creditor and debtor and about which there is little or no controversy are as follows: On March 1st, 1913, the defendant was a turpentine operator and owner of the properties described in the mortgage from Summerlin to the plaintiff; they consisted of certain “turpentine or timber leases,” a turpentine “still” and fixtures, pumps, barrels, “shanties,” barns, stables, sheds, a dwelling house, mules and horses and a launch and motor. The defendant owed the plaintiff, which was engaged in the business of naval stores, commission merchants or factors, about eight thous- and dollars, and desired to sell his property and pay his obligations to the plaintiff. He sold to J. J. Summerlin receiving from him several hundred dollars in money over and above the indebtedness due to the plaintiff. Summerlin became indebted by this transaction to the plaintiff in the sum of eight thousand dollars which was credited to the account of the defendant and his debt extinguished. Summerlin’s indebtedness was secured by a mortgage upon the properties and evidenced by six promissory notes dated March 1st, 1913. The first three notes were for one thous- [399]*399and dollars each and became due June 15th, July 15th and August 15th, 1913. Two were for twelve hundred and fifty dollars each and became due September 15th and October 15th, 1913. These notes were secured by a mortgage upon the properties acquired by Summerlin from the defendant. The mortgage was also given to secure advances to be made by the plaintiff to the defendant from time to time and it contained provisions to the effect that the mortgagor would consign to the plaintiff all turpentine and rosin manufactured or obtained upon the lands described or acquired elsewhere as soon as produced to bp sold for the account of the mortgagor upon commission and that the plaintiff should have the right to apply the proceeds of the sale thereof at its option to any open account or other indebtedness of the mortgagor or upon the notes or renewals thereof and that' the plaintiff was not bound to advance to the mortgagor more than eight thousand dollars “to be owing at any time” but if advances should be made so that the mortgagor’s indebtedness exceeded that amount the same should be secured by the mortgage.

In the above transaction the defendant became “endorser upon three thousand dollars of the total amount of the notes” the plaintiff agreeing to the transaction pro-, vided the defendant became Summerlin’s endorser for three thousand dollars of the indebtedness. The defendant testified that Mr. McNeill through whom the negotiations were carried on for the plaintiff “would not take Mr. Summerlin’s mortgage without my endorsing three notes of a thousand dollars each.” It is not clear which notes of the series of six were endorsed by the defendant pursuant to that agreement.

In December, 1915, Summerlin sold the properties to M. H. Wilds for twenty five hundred dollars. Wilds- gave [400]*400his note to the plaintiff for that amount and a mortgage to secure it upon the same properties. The plaintiff released its lien under the Summerlin mortgage and gave the latter credit upon his indebtedness to it for the amount of the Wilds note. According to the testimony of W. J. Kelly, president of the plaintff corporation, it was informed of the contemplated sale to Wilds by Summerlin but took no part in it. At the time of the sale to Wilds, Summerlin’s indebtedness to the plaintiff was greater than the original debt of his by one thousand dollars. The notes sued upon were second or third renewals of the original debt.

The declaration contained nine counts. The first six declared upon the two notes endorsed by the defendant, the remaining three were common counts for money lent, money paid by the plaintiff and account stated.

After several pleas of the defendant were eliminated by demurrer the following issues were tendered by plaintiff and accepted by the defendant: First, payment by defendant ; second, payment by the maker of the notes; third, that as consideration for the endorsement of the notes by defendant all parties agreed that the proceeds from the shipment of naval stores by the maker to the plaintiff should be applied by the plaintiff in payment of the notes, that the maker directed such application of payments and plaintiff had realized sufficient money from such shipments of naval stores to pay the notes and interest; fifth, that the execution of the mortgage by Summerlin to the plaintiff as security for the payment of the notes was a condition required by the defendant before endorsing them, and that after they matured the plaintiff and the maker effected a sale of the mortgaged property without defendant’s knowledge, for the sum of twenty five hundred dollars and thereby the plaintiff’s claim against defendant became [401]*401satisfied and discharged pro tanto by payment; sixth, that the notes were secured by mortgage on real estate and chattels given as collateral security by the maker as set forth in the notes, and that after maturity of the notes the plaintiff surrendered the collateral security to the mhker without the defendant’s consent or notice to him; that the security surrendered was enforceable and of a value greater than the principal and interest of the notes sued on; seventh, that after maturity of the notes the plaintiff surrendered to M. J. Wilds the collateral security-given by the maker to secure the payment of the notes without notice to the defendant or consent from him, that the security was enforceable and of greater value than the prinicpal and interest of the notes sued on. After issue was joined upon these pleas the plaintiff by leave of the Court interposed three replications to the fifth, sixth and seventh pleas.

It is contended by the plaintiff that these replications allege a state of facts which if true constitute a perfect reply in law to the pleas to which they were interposed. The defendant demurred to the replications and the demurrer was sustained. This order constitutes the basis of the first three asignments of error and is determinative of this litigation.

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Cite This Page — Counsel Stack

Bluebook (online)
90 So. 461, 82 Fla. 396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-naval-stores-co-v-wilson-fla-1921.