Drummond v. Corbin

1938 OK 95, 77 P.2d 692, 182 Okla. 338, 1938 Okla. LEXIS 546
CourtSupreme Court of Oklahoma
DecidedFebruary 15, 1938
DocketNo. 27692.
StatusPublished

This text of 1938 OK 95 (Drummond v. Corbin) 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
Drummond v. Corbin, 1938 OK 95, 77 P.2d 692, 182 Okla. 338, 1938 Okla. LEXIS 546 (Okla. 1938).

Opinion

RILEY, J.

The parties in this appeal are in the same relation as in the trial court. Plaintiff filed his petition on two causes of action declaring upon two promissory notes.

.The first cause of action is based upon a promissory note dated January 28, 1928. It is in form a demand note payable to Alfred A Drummond for the sum of $2,-S1O.80, with interest at 10 per cent, from date, with a credit indorsed thereon of $250, as of 2/11/31. Thereon is indorsed: “Bal. Due A. A. Drummond on land settlement.” The note is signed:

“Corbin Brothers
“by Carlton W. Corbin”
“Carlton W. Corbin,
“W. W. Corbin.”

The note upon* which the second cause of action is based is for $174, dated January 31, 1929, and is signed:

“Carlton Corbin by W. W. Corbin.”

The action is against Carlton W. Corbin alone.

The petition is in ordinary form.

Defendant by amended answer made general denial, and in substance further alleged that for sometime prior to the date of the notes, plaintiff and-defendant’s father, W. W. Corbin, now deceased, were engaged in a partnership business of buying and selling cattle, and in some instances real estate; that due to the fact that W. W. Corbin was insolvent, said partnership business was by mutual agreement carried on in the name of Corbin Brothers, consisting of defendant and his younger brother, Murray Corbin. That this arrangement was with the consent of defendant and his brother; that it was also satisfactory and advantageous to plaintiff in that he was an officer of the First National Bank of Hominy, and he could thereby more easily obtain loaiis from said institution and other sources. I-Ie then alleged:

“This defendant alleges that at no time has he or his brother, Murray Corbin, ever had any interest in the said partnership of Corbin ajid Corbin, and that neither of them ever had authority .to handle any of said partnership affairs, but at such time were both students in college.
“This defendant further alleges that when it became necessary for the partnership above referred to to negotiate loans to conduct said business, the plaintiff and this defendant’s father would have this defendant execute notes in blank with his father, W. W. Corbin, and place them in the custody of the plaintiff, who, when it was necessary to raise such money, would complete the notes for the amounts needed, making the same payable to himself, and sell the notes, or place the same as collateral security for the money needed, and that as profits accrued in said partnership, said notes were supposed to be retired and destroyed.
“This defendant alleges that he has executed in blank, as aforesaid numerous notes, which he and his father entrusted to the possession of the plaintiff, and that each of them, in so far as relationship between he and the plaintiff was concerned, was without consideration and was merely an accommodation to the plaintiff above named and this defendant’s father. That he never kept a definite account of the number of notes he signed in blank as aforesaid, but alleges that he has signed as many as six at a time in blank and entrusted the same *340 to the possession of the plaintiff above named as aforesaid. That this plaintiff has not seen the particular notes attached to plaintiff’s petition as exhibits ‘A’ and ‘B’, and cannot definitely state whether or not the signature thereon is his own, and for such reason demands strict proof of the allegations in plaintiff’s petition concerning his execution of said notes. He further alleges that if said notes do bear .his signature the same were two of those signed in blank as aforesaid for which there was no consideration whatever as between plaintiff and this defendant, or as between the plaintiff and his father, and were delivered upon the expressed condition and for the expressed purpose of enabling plaintiff and this defendant’s father to raise funds as hereinbefore described and not for the purpose of evidencing any indebtedness between plaintiff and this defendant.”

Plaintiff replied by unverified general denial of new matter, and, “He admits, if admission be necessary, that defendant signed the notes in question.”

The allegations of the existence of the partnership between plaintiff and defendant’s father not having been dehied under oath, the principal issue was whether said notes were executed by or in the name of defendant as a member of the so-called firm of Corbin Brothers (or Corbin & Cor-bin), or individually, and were accommodation notes executed for the sole benefit and accommodation of plaintiff and W. W. Cor-bin in their business affairs.

The evidence was conflicting, but the issue was presented to the jury under instructions not excepted to and stated by counsel for plaintiff to be fair and to fairly state the law.

Verdict was for defendant, and after overruling of motion for new trial and motion for judgment notwithstanding the verdict, judgment was entered on the verdict, and plaintiff appeals.

The first proposition presented goes to the question of what constitutes a consideration sufficient to support a promissory note. There is no controversy as to the law. The defendant admits the correctness of the proposition as presented.

As stated before, the evidence was in conflict. If plaintiff’s testimony was true, there was good consideration for the notes. If that of defendant be true, there was no sufficient consideration. The jury saw fit to give preference to the defendant’s evidence. There is abundant evidence tending to support the verdict.

The second proposition is that a promissory note may be executed by the payor individually, or by his duly authorized agent.

This proposition is likewise not contested. As stated before, the real issue was not the execution of the notes, but whether or not they were executed by defendant by himself, or by his father with his consent, without consideration and solely for the benefit of plaintiff and W. W. Corbin as partners.

The next contention is that the court erred in denying a motion to direct a verdict for plaintiff. Plaintiff in support of this contention cites section 11323, O. S. 1931, to the effect that every negotiable instrument is deemed prima facie to have been issued for’ a valuable consideration, and every person whose signature appears thereon to have become a party thereto for value. He also cites Colonial Sugar Co. v. Waldrep, 121 Okla. 31, 246 P. 623, wherein it is held:

“Where the defendant does not offer sufficient evidence in support of his answer to justify a verdict in his favor, there is nothing to submit to the jury and it is the duty of the court to sustain plaintiff’s motion for an instructed verdict.”

He also cites Whitney v. Low, et al., 137 Okla. 1, 278 P. 1096, substantially to the same effect. These cases correctly state the law, but they are cases wherein there was no evidence reasonably tending to support the claim of the party against' whom the verdicts should have been directed.

Such is not the case here. As stated before, the evidence was in conflict on the principal issue.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Colonial Sugar Co. v. Waldrep
1926 OK 64 (Supreme Court of Oklahoma, 1926)
L. J. Brosius & Co. v. First Nat. Bank of Noble
1916 OK 680 (Supreme Court of Oklahoma, 1916)
Whitney v. Low
278 P. 1096 (Supreme Court of Oklahoma, 1929)
Yakima Valley Bank v. McAllister
79 P. 1119 (Washington Supreme Court, 1905)
McNair v. Parr
143 N.W. 42 (Michigan Supreme Court, 1913)

Cite This Page — Counsel Stack

Bluebook (online)
1938 OK 95, 77 P.2d 692, 182 Okla. 338, 1938 Okla. LEXIS 546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drummond-v-corbin-okla-1938.