Continental Supply Co. v. Syndicate Trust Co.

202 N.W. 404, 52 N.D. 209, 1924 N.D. LEXIS 127
CourtNorth Dakota Supreme Court
DecidedDecember 31, 1924
StatusPublished
Cited by14 cases

This text of 202 N.W. 404 (Continental Supply Co. v. Syndicate Trust Co.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Supply Co. v. Syndicate Trust Co., 202 N.W. 404, 52 N.D. 209, 1924 N.D. LEXIS 127 (N.D. 1924).

Opinion

*213 JohNsoN, J.

This is an appeal from a judgment against defendant P. J. Burfening in the sum of $2,614.59, on certain promissory notes executed by the defendant partnership, of W'hich the appellant was a member. Burfening assigns error principally on the ground that the court denied leave to amend, and a motion for a continuance, made on the day of the trial and after the jury had been impanelled.

In order to understand fully the issues, it will be necessary to state the history of the litigation somewhat in detail. On October 10, 1923, summons and complaint were served personally on defendant P. J. Burfening and on November 8, he interposed an answer, which is, in effect, a general denial. The case then went on the December, 1923, calendar, in Cass County; depositions of witnesses for the plaintiff were taken at Houston, Texas, on December 28, 1923,, and at St. Louis, Missouri, December 3, 1923. Defendant Burfening appeared when the deposition of Narregang was taken at Houston, but no questions were propounded to the witness by his counsel. On the 19th of January, 1924, the case not having been tried at the December term, but being on the January, 1924, calendar, counsel for Burfening served a proposed amended answer and counterclaim, with notice of motion for leave to file the same, to be heard on January 29, 1924. The proposed answer admits the partnership and the execution of the notes. It is alleged that the consideration for the notes failed completely in this, that the machinery purchased by the partnership was not as warranted and was *214 valueless. The defendant then alleges a counterclaim, based upon breach of warranty and resulting damages. An affidavit was filed-by counsel for the plaintiff in opposition to the application for leave to amend, in which it was alleged that the original answer was served within thirty days; that on November 10, 1923, the case was put on the regular calendar in Cass county and that notice to take depositions was served on November 26; that depositions were taken at Houston, Texas and St. Louis, Missouri, at large expense to plaintiff, and that at the taking of such depositions defendant Burfening appeared by counsel. It is then alleged that application for leave to amend is made for purposes of delay.

On the 2nd of February, Judge Cole denied the motion for leave to amend, and on March 7 plaintiff commenced attachment proceedings against Burfening and levied upon his property in Cass county. On the loth of March, the case came for consideration before Judge Englert, one of the Jiidges of the district court, and on that date it transpired that an affidavit of prejudice had been filed by defendant against Judge Englert. This court assigned the lion. H. L. Berry to try the case. On March 20, the case was called for trial in the forenoon and after the jury had been impanelled and during the noon hour a notice of motion for a continuance was served on the plaintiff, together with affidavit of one of the counsel for Burfening, Mr. J. P. Conmy, in support of the application. The application was promptly denied, whereupon the defendants withdrew on the ground that they had no evidence. The plaintiff proved its case, read the depositions of the witnesses, and the trial court instructed the jury to return a verdict for the plaintiff. The jury returned a general verdict in the amount asked in the complaint.

Ordinarily, an affirmance of the decision of the trial court, refusing to continue the case, would dispose of the other error assigned, based upon the order denying leave to amend. In this case, however, it appears probable, and it is so contended by counsel for the appellant, that the trial court, in denying the motion for a continuance, 'was influenced by the fact that the matters, which it was alleged in the affidavit that Burfening would testify to, were not admissible under the general denial. In view of this possibility we shall first determine whether the trial court abused its discretion in refusing to permit the *215 defendant to file an amended answer on tbe 29tb of January, laying a foundation for tbe evidence alleged in tbe affidavit in support of tbe motion for a continuance, wbicb was subsequently made and likewise denied. XJpon tbe entire record we are satisfied that we can not say, as a matter of law, that tbe trial court committed reversible error in refusing to allow tbe amendment.

It is strenuously urged that it was an abuse of discretion to deny tbe application for leave to amend tbe answer. We bave examined tbe record with some care for facts bearing on tbis alleged error. There are some ratber impressive circumstances that may bave influenced the trial court to deny tbe motion. Tbe answering defendant is a member of tbe bar of tbis state; tbe trial court might well bave presumed that be was thoroughly familiar with tbe elementary rules of pleading and of trial practice, and that he knew that in tbis jurisdiction absence and failure of consideration are matters of defense, must be pleaded and can not be proved under a general denial. Section 6913, Comp. Laws, 1913, being § 28 of tbe Neg. Instr. Act, makes absence or failure of consideration a matter of defense and tbis court has held that tbe burden of proof as to tbe defense of want or failure of consideration is upon tbe defendant to tbe end. Stubbins Hotel Co. v. Beissbarth, 43 N. D. 191, 174 N. W. 217; First State Bank v. Radke, 51 N. D. 246, 35 A.L.R. 1355, 199 N. W. 930; Sharp v. Sharp, 145 N. Y. Supp. 386; 2 Bates, New Pl., Pr., Parties & Forms, p. 1317. He was personally served, the law firm of wbicb be was tbe bead prepared tbe am swer, and he did not leave tbe jurisdiction until after tbis answer was served. Moreover, tbe answering defendant was a member of tbe partnership, defendant in tbe action; tbe articles of copartnership are written on stationery that bears tbe name of bis law firm; no suggestion appears in tbe record or tbe moving papers why tbe defense that Narregang bad no authority to purchase tbe machinery and execute tbe notes, under article 16 of tbe copartnership, was not as fully known to Burfening when be interposed bis general denial as at tbe time be applied for leave to amend, two months later; and if be knew of that -defense when be drew bis answer, it was, of course, bis duty to allege it, if be intended to rely thereon. No explanation is given of tbe failure to-allege tbe facts constituting a breach of warrant; it is not stated why this partner did not know of tbe breach when bis general denial *216 was served; if be then knew of the breach and intended to interpose that defense, good faith and fairness to opposing counsel required that the facts be alleged. If he did not know the facts constituting the broach, that fact should be stated, together with the circumstances, to the end that the court might determine whether legal excuse existed for ignorance of matters affecting the business of the firm of which he was a member. There is a total lack of explanation why the defensive matter alleged in the proposed amended answer was not interposed when the general denial was served. While it may be that it would not have been an abuse of discretion to permit the amendment, on such terms as would have been just in the circumstances, we are not inclined to say that to refuse the amendment was reversible error.

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Bluebook (online)
202 N.W. 404, 52 N.D. 209, 1924 N.D. LEXIS 127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-supply-co-v-syndicate-trust-co-nd-1924.