Deere & Co. v. Wolfe

65 Iowa 32
CourtSupreme Court of Iowa
DecidedOctober 24, 1884
StatusPublished
Cited by7 cases

This text of 65 Iowa 32 (Deere & Co. v. Wolfe) 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
Deere & Co. v. Wolfe, 65 Iowa 32 (iowa 1884).

Opinion

Beck, J.

x. contract of sale: illegal consideration: comony:Kwhitfis" fug’forge™" payment?11 I. The personalty in question was seized upon a writ of attachment issued against Wolff. The intervenor claims it under purchase from Wolff, made before the commencement of the suit and issuing of o ^he attachment. In answer to the intervenor’s petition, plaintiffs allege that “all claim or title of intervenor on said proportv is derived from defendant, II. S. Wolff,,but that Wolff never assented to part with any title or intei-est in said property to intervenor, and that all power of assent by said Wolff given was obtained by intervenor by duress. * * * All claim of title or interest that intervenor has to or in the property in controversy was and is founded upon an illegal consideration, in that the same was secured by intervenor through a contract tainted with an agreement to stifle and hinder criminal prosecution for the crime of forgery against IT. S. Wolff, from whom all of intervenor’s claim is derived.” It will be observed that the issues involve the legality of the [34]*34contract of purchase of the property, which plaintiffs insist is void.

There was evidence tending to prove that intervenor held certain promissory notes executed by Wolff for money loaned by it; that Wolff transferred to the bank, as collateral security, certain other notes, the signatures to which, or indorsements thereon, were forgeries; that the officers of the bank and its attorney, becoming informed of the character of this paper, secured from Wolff, to secure his indebtednes to the bank, a mortgage upon real estate, and a chattel mortgage upon certain personal property to secure certain claims it held against him for collection. Subsequently Wolff transferred and delivered the personal property to the bank in satisfaction of claims held by it. There was evidence in regard to the value of the property and other matters, which need not be here referred to. No direct evidence was introduced showing that the mortgage and transfer of the personal property was extorted from Wolff through fear, on his part, of prosecutions for forgery to be instituted by the bank. Nor was there any such evidence of an agreement by the bank, in consideration thereof, not to prosecute him, nor to give evidence against him, to conceal evidence of forgery, or to “stifle and hinder” prosecutions therefor. It is claimed that the facts above stated and referred to are circumstances from which such illegal agreement may be inferred.

II. The circuit court gave to the jury the following the same. instructions:

“10. If the jury find from a preponderance of the evidence that the intervenor herein, at the time of the alleged purchase of the property in controversy, held promissory notes purporting to have been executed by third parties, which they had received either as collateral or by purchase from H. S. Wolff, and if you further find that such notes or any part of them were in fact forged, and the said Wolff had in fact forged the same, or was charged with the forgery thereof, and that said intervenor, by its president or cashier, [35]*35or either one of them, had-knowledge of such forgeries, and. that said íl. S. Wolff was either guilty thereof or charged with the same; and if you further find that the intervenor, through its. officers or attorney, acting for intervenor at the time, agreed to surrender, and did surrender, the said forged notes to the said TI. S. Wolff in consideration of the sale and delivery of the property in controversy by said Wolff to intervenor, with the intent or purpose on the part of such officers, or officer, or attorney, acting at the time for interveuor, to place the evidence of such crime of forgery in the possession of said Wolff, to enable him to destroy or suppress the same, then such sale would be wholly void, and you should find for plaintiff.

“ 11. The mere taking of security or receiving payment for a debt evidenced by a forged note, or secured by forged collaterals, would not in itself be unlawful, or' render such transaction void.

“ 12. The act of taking security or receiving payment of the debt must be coupled with some act done which would have in its tendency the effect of preventing and hindering the prosecution of such crime, and done with the intent or purpose of hindering or preventing such prosecution.

“13. And, before you can find for plaintiff upon such issue, you must find the purchase of the property in controversy was coupled with the surrender of forged notes, with the intent or purpose upon the part of the officers or officer of intervenor, or its attorney, acting for it at the time, to hinder or prevent the prosecution of said Wolff for the alleged crime of forgery; and such surrender with such intent or purpose should be established by a clear and fair preponderance of the evidence. It need not necessarily be established by direct proof; if it is established by the proof of such facts and circumstances as, taken together, would establish this, it would be sufficient. Proof that would create a bare suspicion of such intent would not be sufficient.”

[36]*36The jury were directed by these instructions that their verdict should be for plaintiff, if they found the forged notes were surrendered in consideration of the transfer of the property, with the intent on the part of defendant’s officers “ to place the evidence of such crime of forgery in the possession of said Wolff, to enable him to destroy or suppress the same,” or if they found the purchase of the property was “coupled with” the surrender of forged notes, with the intent on the part of the officers of the bank “ to hinder and prevent” the prosecution of Wolff for forgery, or if they found the surrender of the notes was coupled with some act which would have a tendency to that effect. The doctrines of the instructions, stated generally, are these:

If one holding a forged promissory note, given him as collateral security by the guilty party, who is authorized to pay it, receives payment thereof from such party by the transfer of pro]3erty, and surrenders to him the note, with the intent to place the evidence of the crime in the hands of the guilty party, that he may destroy or suppress it, or, if the payment of the note was united with its surrender, or with some other act tending to hinder or prevent a prosecution for forgery, with the intent to hinder or prevent such prosecution, the contract of transfer is void.

It must be here observed that the evidence referred to in the instructions, together with the foregoing statement of their doctrines, must be regarded as referring to the forged notes, as there is not a particle of evidence tending to show that any other instrument of proof was placed in Wolff’s hands. If it is not so understood, the instructions are plainly erroneous, for the reason that there is no evidence tending to prove facts to which they are applicable. We will, therefore, discuss the instruction, in the view that they are restricted to the surrender of the alleged forged notes.

We will proceed to inquire into the correctness of the rules of the instructions.

[37]*37THE SAME. [36]*36III. It is a familiar rule of the law that illegal contracts [37]*37—such as are based upon unlawful considerations, or are made in contravention of the law, or of public policy, ,, . . • i . ,. . , or for purposes criminal or immoral in their nature, are void.

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Bluebook (online)
65 Iowa 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deere-co-v-wolfe-iowa-1884.