Davis v. Schmidt

106 N.W. 119, 126 Wis. 461, 1906 Wisc. LEXIS 131
CourtWisconsin Supreme Court
DecidedJanuary 9, 1906
StatusPublished
Cited by6 cases

This text of 106 N.W. 119 (Davis v. Schmidt) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Schmidt, 106 N.W. 119, 126 Wis. 461, 1906 Wisc. LEXIS 131 (Wis. 1906).

Opinion

Keewin, J.

1. Error is assigned in denying plaintiff’s motion that a verdict be directed in his favor. It is contended [463]*463by appellant that, because the answer admits that judgment was recovered for one year’s interest against defendants, the ■determination of the court in such action for the recovery of interest is conclusive between the parties and their privies, and that the defendants cannot now question the plaintiff’s right to recover on the note in suit. The answer denies generally the plaintiff’s right to recover, and the admission in the answer that judgment was recovered for one year’s interest upon the note in suit is not sufficient to conclude the defendants in a suit on a different cause of action, where it is not alleged that the same matters were litigated or determined in the suit for interest. There is nothing in the allegation of the complaint, nor the admission in the answer respecting the recovery of judgment, which shows that the judgment was recovered upon the merits, or that the defense interposed in such action for the recovery of interest was the-same as the defense in this action. The mere allegation of the recovery of interest in tire complaint and the admission thereof in the answer is not sufficient to conclude the defendants in this action. It does not appear from the pleadings that the defense set up here was litigated or determined in the former action. Hence the judgment in the former action upon a different cause of action is not binding here., Wentworth v. Racine Co. 99 Wis. 26, 74 N. W. 551; Cromwell v. County of Sac, 94 U. S. 351; 1 Van Fleet, Former Adj. § 30.

It is further claimed that defendants, with full knowledge of the facts and having more than one remedy, elected their remedy by commencing suit against L. M. Goldberg Company, which remedy is inconsistent with-the defense now set up, and therefore they cannot maintain their present defense to this action. It appears from the record that the note in suit was given for the purchase price of a stallion, which was delivered about the time of the execution of the note. About six months afterwards the makers of the note commenced an action against L. M. Goldberg Company, — a copartnership ■composed of L. M. Goldberg, C. A. Finisterwald, and Mose [464]*464Goldberg, payee in' said note, — to recover damages for breach of warranty in the sale of the horse for which the note was given. In short, it was claimed that the defendants here were induced to purchase the stallion relying upon the warranties and representations of the payee, which were false, and that the horse was falsely represented to be worth $2,600, when in fact it was worth not to exceed $50, and that the purchase price, $2,600, was paid in the shape of the promissory note in suit, the signatures to which were obtained by fraud, in consequence of which plaintiffs (defendants here) sustained damages in the sum of $2,600, for which they demanded judgment. The record does not disclose that the defendants ever returned or offered to return the stallion, or ever rescinded the contract of purchase, and the action commenced by them for the recovery of damages clearly evinced their intention to stand upon the suit for damages for breach of the contract, and not upon rescission. They could only recover in the action for damages upon the theory that they were liable upon the note, and clearly this was the basis of their damages. Had they recovered in the suit commenced for damages it is very clear they would be liable upon the note. They could not have their damages, which, in effect, were based upon the consideration of the note, and also escape the payment of it. The two remedies would be clearly inconsistent, and the defendants here, having elected their remedy by suing for damages, elected to affirm the sale. Rowell v. Smith, 123 Wis. 510, 102 N. W. 1; Smeesters v. Schroeder, 123 Wis. 116, 101 N. W. 363, and cases cited in opinion; Moller v. Tuska, 87 N. Y. 166; Rodermund v. Clark, 46 N. Y. 354. As said in Rodermund v. Clark, 46 N. Y. 354, 357:

“Any decisive act of the party, with knowledge of his rights and of the fact, determines his election in the case of conflicting and inconsistent remedies.”

Here, upon the facts appearing in the record, the action of the defendants in commencing suit for breach of warranty was consistent with no other theory than an affirmance of the sale, [465]*465the consideration of which was the $2,600 note. Therefore we see no escape from the conclusion that in the commencement of snch action with knowledge of the facts, or at least reasonable means of knowledge, the defendants here elected their remedy and are bonnd by snch election.

It is claimed by counsel for respondent that the doctrine of election of remedies does not apply to a defendant, and that a defendant may set up and maintain in the same answer as many defenses as he may have, whether they be consistent or not; and he cites South Milwaukee B. H. Co. v. Harte, 95 Wis. 592, 70 N. W. 821; Kerslake v. McInnis, 113 Wis. 659, 89 W. 895; Gates v. Avery, 112 Wis. 271, 87 N. W. 1091. In South Milwaukee B. II. Co. v. Harte, supra, it appears that the defenses were not inconsistent in their facts. They were set up in the answer and submitted to the court for its determination, and in referring to the doctrine that defenses must be consistent the court said (95 Wis. 595, 70 N. W. 822):

“This rule does not invade the general principle that the truth should be pleaded, nor the principle that an admission in an answer will not be affected by a repugnant deniál in another part of the same answer. . . . While authorities may be found stating, in general terms, that inconsistent defenses cannot be set up in the same answer, examination will show that these are generally cases where repugnant allegations of fact are contained in the different defenses, and where, consequently, the proof of one defense would necessarily disprove tiie other.”

In Gates v. Avery, supra, the defenses claimed to be inconsistent were a general denial and payment in full, and it was held that the two defenses were not inconsistent. A general denial and plea of payment were clearly not inconsistent defenses. In Kerslake v. McInnis, supra, it was claimed that inconsistent defenses were included in the plaintiff’s reply; but it is said that there was, however, but one defense relied upon and submitted to the jury, and that no objection was [466]*466made to the form of the pleading on the trial. It does not appear in any of these cases that a deliberate election was made before suit brought, and hence we do not regard the cases in point. While considerable latitude is allowed in setting up defenses where they are not inconsistent in- their facts, although possibly they may be in legal theory, the cases are quite different from the one before us, where the contract was deliberately affirmed and the election made to seek the remedy for damages on the theory that a contract existed and that there had been a breach of it. Bostwick v. Mut. L. Ins. Co. 116 Wis. 392, 89 N. W. 538, 92 N. W. 246.

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Bluebook (online)
106 N.W. 119, 126 Wis. 461, 1906 Wisc. LEXIS 131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-schmidt-wis-1906.