Denman v. Brennamen

1915 OK 239, 149 P. 1105, 48 Okla. 566, 1915 Okla. LEXIS 671
CourtSupreme Court of Oklahoma
DecidedApril 29, 1915
Docket4077
StatusPublished
Cited by8 cases

This text of 1915 OK 239 (Denman v. Brennamen) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denman v. Brennamen, 1915 OK 239, 149 P. 1105, 48 Okla. 566, 1915 Okla. LEXIS 671 (Okla. 1915).

Opinion

Opinion by

WATTS, C.

(after stating the facts as above). 1. Assignments 1, 2, 4, 6, 8, and 9 may be considered together as embracing but one question.

On the face of the note as herein set out, is it ambiguous in the sense that it was error to admit parol evidence to show that the intention of the parties was to obligate themselves to its payment? Upon this proposition we think the courts have discussed and differed in their views beyond all hope of immediate reconciliation, and if the Supreme Court of this state had not heretofore chosen the affirmative, we would find much difficulty in our alinement. In Wiers et al. v. Treese, 27 Okla. 774, 117 Pac. 182, Mr. Justice Dunn, who wrote the opinion, very carefully considered the question, involving a note equally as difficult as the one under consideration, to-wit:

*570 “$40.00 Cleveland, O. T., Sept. 6th, 1901.
“January 1st, 1904, after date, the Greenwood Gin Co. promise to pay to S. N. Treese & Son or bearer, forty dollars at the Triangle Bank of Cleveland, O. T., value received with interest at 10 per cent, per annum. No. 3. Due Jan. 1st, 1901.
“M. A. Wiers, Pres, of Company.
“W. A. Moore, Sec.”

We call especial attention to the reading and signing of the note last referred to:

“The Greenwood Gin Co. promise to pay.”
“[Signed] M. A. Wiers, Pres, of Company.
“W. A. Moore, Sec.”

We quote Judge Dunn as follows:

“It appears that on the trial of the action the court admitted, over the objection of plaintiffs in error, evidence showing that the note was signed by them in their personal capacity, and that it was intended to bind them, and not the Greenwood Gin Company. Courts in which this proposition had been presented and passed on have left no field for original research or expression, and, in passing on the same, we content ourselves with a quotation from two well-considered cases which disclose the state of the law and which express our views.
“The Supreme Court of Maryland, in the case of Laffin & Rand Power Co. v. Sinsheimer, 48 Md. 411, 30 Am. Rep. 472, in holding parol evidence admissible in such case, said: ‘The construction of written instruments, signed by persons describing themselves as agents, or as officers of corporations, has been a fruitful source of litigation, and the decisions are conflicting and in many cases unsatisfactory. Not that there seems to be any difficulty in regard to the rules of law which ought to govern in the interpretation of contracts, but in the application of such ‘rules to each particular case. The subject is fully considered by Parsons on Notes and Bills, Story on Prom *571 issory Notes, Byles on Bills of Exchange; and we do not propose to examine in detail the many cases referred to by these writers, nor attempt the fruitless task of reconciling conflicting decisions. After all, the . question whether one signing a note or accepting a bill, as an officer of a corporation, means to bind himself personally is a question of intention between the parties to the in- • strument; and this intention, we admit, as a general rule, must be determined by the face of the paper itself. Where one having authority accepts a bill in such a manner as manifests an intention not to bind himself, but to bind a corporation of which he is an officer, and to be paid out of the funds of the corporation, it is clear in such 'a case the acceptance will not bind him personally. But cases frequently occur, owing to the almost infinite variety in forms of expression and in the use of words, in which it is difficult to determine from the face of the paper itself whether the party signing means to bind himself, and adds, his official character merely for the purpose of indicating the character in which he acts, or whether the official character is added for the purpose of showing he does a mere ministerial act, and that the promise is made and the obligation incurred for and in behalf of the corporation. In other words, does he, in the language of the court in Bradlee v. Boston Glass Com’y, 16 Pick. (Mass.) 347, “apply the executing hand as the instrument of another, or the promising and engaging mind of a contracting party”? In such cases, where there is such ambiguity on the face of the paper as to .be consistent with either construction, whether one means to bind himself personally, or acts only in an official capacity, parol evidence is clearly admissible, to prove the circumstances under .which the contract was made, or, in other words, to prove the true nature of the transaction. Haile et al. v. Pierce, 32 Md. 330, 3 Am. Rep. 139; 1 Am. Leading Cas. Marg. 633, notes to Rathbon v. Budling and Pentz v. Stanton. Parol evidence in such cases does not contradict, alter, or add to the written instrument, but explains the intention of the parties,- and which could not be ascertained with *572 any degree of certainty from the face of the instrument itself.’ ”

Again, in 70 Iowa, 591, 31 N. W. 947, Heffner v. Brownell:

“We promise to pay Daniel Heffner,” etc.
“[Signed] Independence Mfg. Co.,
“D. I. Brownell, Pres.
“D. B. Sanford, See.”

Quoting:

“In the case at bar it may be considered that the Independence Manufacturing Company is bound, and still the question remains whether the defendant is not also. The note purports on its face to be the note of all the persons, including the corporation, who executed it. There is nothing on the face of the note which, indicates that the defendant signed it as president of the manufacturing company, and for it. * * * The courts have been called on to determine who is bound on notes similar in some respects, and yet all to which our attention-has been called are different from the instrument sued on. Some of these do not disclose the name of any principal except the persons who have signed the note, or claim to have •done so in a representative capacity. In this case, as the note purports to bind both the corporation and the defendant, and there is nothing to indicate that the defendant was president of the corporation, or had signed the note for it, or in its behalf, we think he is bound personally, and that the letters ‘Pres.’ must be regarded simply as descriptive of the person to whose signature they are appended. It follows that the court erred in sustaining the demurrer.”

In McCandless v. Belle Plain Canning Co., 78 Iowa, 161, 42 N. W. 635, 4 L. R. A. 396, 16 Am. St. Rep. 429, the note in question reads:

*573 “We promise to pay to Eliza J. McCandless,” etc.'
“Belle Plain Canning Co.,

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Bluebook (online)
1915 OK 239, 149 P. 1105, 48 Okla. 566, 1915 Okla. LEXIS 671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denman-v-brennamen-okla-1915.