Dearborn Motors Credit Corporation v. Neel

313 P.2d 243, 181 Kan. 598, 1957 Kan. LEXIS 385
CourtSupreme Court of Kansas
DecidedJuly 3, 1957
Docket40,595
StatusPublished
Cited by6 cases

This text of 313 P.2d 243 (Dearborn Motors Credit Corporation v. Neel) 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
Dearborn Motors Credit Corporation v. Neel, 313 P.2d 243, 181 Kan. 598, 1957 Kan. LEXIS 385 (kan 1957).

Opinions

The opinion of the court was delivered by

Fatzer, J.:

This is an appeal from an order vacating a judgment in favor of defendant appellant, A. S. Neel, rendered upon his motion for judgment on the pleadings in an action by Dearborn Motors Credit Corporation to recover money under a written purchase agreement.

[599]*599For identification of the parties, defendant appellant A. S. Neel will he referred to as Neel; plaintiff appellee Dearborn Motors Credit Corporation will be referred to as Dearborn, and defendant W. P. Astle, d/b/a Astle Tractor, will be referred to as Astle.

The facts pertinent to this controversy are summarized as follows: On March 12, 1954, Astle sold Neel a Ford diesel tractor for which Neel agreed to pay a deferred time balance of $1959.90 in three equal installments of $653.30 each, commencing December 12, 1954, except the final installment which was to be the amount then due and unpaid. Neel agreed that Astle might assign and discount the contract to Dearborn. For a valuable consideration Astle assigned the purchase agreement and upon Neel’s default in payment Dear-born commenced the present action by filing its verified petition to recover the total of the deferred time balance of $1959.90 then due and unpaid.

On September 20, 1955, Neel filed a motion to make Astle an additional party defendant, which was allowed, and on March 5, 1956, Astle filed an entry of appearance and waiver of summons.

On February 23, 1956, Neel filed an answer and verified cross-petition against Dearborn and Astle claiming damages for misrepresentation and fraud as to the tractor. In his answer Neel denied indebtedness to Dearborn and alleged that the purchase agreement was usurious. In his cross-petition Neel alleged that Astle and his salesman represented to him the tractor was new; that the representation was false and knowingly and fraudulently made by Astle and his salesman for the purpose of defrauding and inducing him to purchase the tractor, and that he relied upon the representation; that Dearborn “knew or should have known of such representation and its falsity and as assignee of the purchase agreement attached to plaintiff’s petition, is charged with knowledge thereof”; that in fact the tractor was not new, but had been used by Astle as a demonstrator on several plowing demonstrations prior to its being sold to Neel; that various mechanical defects developed and the tractor failed to operate properly and would not produce adequate speed for plowing and farm work; that the fuel injection system did not operate properly and the motor used excessive oil; that attachments were to have been furnished with the tractor, which were not furnished, by reason of which Neel had to hire work done; that the tractor was worth $300 rather than $2786 for which it had been sold to him; and, that as a result he had [600]*600received total damages in the sum of $3004.60. The prayer was for judgment against Dearborn and Astle and each of them in that amount.

On September 14, 1956, Astle filed his answer to Neel’s cross-petition, which expressly denied the fraud alleged by Neel; denied Neel’s allegation that the tractor failed to operate properly, and that if Neel had difficulty with the tractor it was by reason of his own faults and efforts to properly operate it. He alleged that Neel ordered the tractor January 4, 1954, and agreed the tractor should be used by Astle as a demonstrator until delivery to Neel in March 1954; that he and his representatives co-operated with Neel out of all proportion in an effort to satisfy Neel with the tractor, but that Neel refused and did not intend to be satisfied with it. His prayer was that Neel take nothing by his cross-petition.

On September 15, 1956, the day following the filing of Astle’s answer, which presented a material issue of fact, Neel filed his motion for judgment on the pleadings against Dearborn, but did not ask for judgment against Astle. The affidavit of Neel’s counsel, Archie T. MacDonald, filed September 21, 1956, recited that on September 15, 1956, he deposited in the United States mail true copies of the motion for judgment on the pleadings, properly addressed to counsel for Dearborn: Warnick, Phares, Norton and Healy, Wichita, Kansas, and to counsel for Astle: Kenneth Speir, Newton, Kansas. Accompanying each copy of the motion was a letter addressed to counsel for Dearborn stating that Neel intended to present his motion for judgment on the pleadings to the judge of the district court on September 21, 1956, at 9:30 a. m. or as soon thereafter as the motion might be heard.

On September 21, 1956, neither counsel for Dearborn nor Astle appeared. In presenting his motion for judgment on the pleadings counsel for Neel did not call the district court’s attention to the answer filed by Astle the previous day to Neel’s cross-petition and the material issue of fact presented therein, but instead reminded the district court that only recently it had overruled Astle’s demurrer to Neel’s answer and cross-petition. Upon consideration of Neel’s motion for judgment on the pleadings the district court found that Neel was entitled to judgment against Dearborn on his cross-petition in the sum of $3004.60; that Dearborn was entitled to judgment against Neel in the amount of $1959.90, and that Neel should have [601]*601judgment against Dearborn for the difference in those amounts. Accordingly, judgment was entered in favor of Neel and against Dear-born for $1044.70 with interest at 6 percent until paid.

Counsel for Neel did not submit the journal entry of judgment for approval to counsel for either Dearborn or Astle prior to filing it and did not file the journal entry until October 1, 1956. Counsel for Dearborn did not know of the entry of judgment against their client until they received a copy of the journal entry of judgment forwarded to them on October 1, 1956.

Upon being advised that judgment had been entered against their client, counsel for Dearborn filed a motion to vacate that judgment upon the following grounds: (1) That notice of presentation of the motion for judgment was not given as provided by law; (2) that the notice did not provide sufficient time and did not stand for hearing at the time stated; (3) that through clerical error in their office, Mr. Pat Healy, who was handling the Dearborn litigation, was not aware of the filing of the motion or of the date of its hearing; and (4) that the judgment against Dearborn was void as not supported by the record and pleadings.

On November 2, 1956, Dearborn’s motion to vacate was heard. The parties conceded that September 21,1956, was a regular motion day of the April 1956 term of the district court of McPherson County and that the October 1956 term of that court commenced October 1, 1956; that September 15,1956, was Saturday, and that on the following Monday, September 17, 1956, Mr. MacDonald’s unregistered letter was received in Mr. Healy’s law office in Wichita, but due to a clerical error and an inexperienced secretary, that letter and notice was not called to his attention until September 21, 1956, the day of the hearing of Neel’s motion for judgment on the pleadings. Upon consideration of the record and the statements of counsel, the district court sustained Dearborn’s motion to vacate and the judgment rendered September 21, 1956, and filed October 1, 1956, against Dear-born was vacated pursuant to G. S. 1949, 60-3007, Third, for irregularity in obtaining it. From that order Neel has appealed.

Was the judgment against Dearborn irregularly obtained?

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Dearborn Motors Credit Corporation v. Neel
313 P.2d 243 (Supreme Court of Kansas, 1957)

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Bluebook (online)
313 P.2d 243, 181 Kan. 598, 1957 Kan. LEXIS 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dearborn-motors-credit-corporation-v-neel-kan-1957.