Farmers National Bank v. Rosenkrans

240 Ill. App. 230, 1926 Ill. App. LEXIS 235
CourtAppellate Court of Illinois
DecidedApril 3, 1926
DocketGen. No. 7,558
StatusPublished
Cited by4 cases

This text of 240 Ill. App. 230 (Farmers National Bank v. Rosenkrans) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers National Bank v. Rosenkrans, 240 Ill. App. 230, 1926 Ill. App. LEXIS 235 (Ill. Ct. App. 1926).

Opinion

Mr. Justice Jett

delivered the opinion of the court.

Farmers National Bank of Princeton, Illinois, appellee, obtained judgment by confession in the circuit court of Bureau county against Anson Rosenkrans, appellant, upon a judgment note for $5,000, dated August 30, 1921.

The note declared upon reads as follows:

“Princeton, Illinois. August 30, 1921. $5,000.00.

“Two years after date, for value received, I promise to pay to the order of Farmers National Bank of Princeton, Ill., Five Thousand and No-100 Dollars at said Bank, with interest at seven per cent per annum from maturity. (Here follows warrant of attorney authorizing confession of judgment at any time after date of note.) This note is given to secure a note and any renewals thereof, dated April 12, 1921, due six months after date, signed T. Clyde. Strait, Anson Rosenkrans and Mrs. T. Clyde Strait.

(Signed) Anson Rosenkrans. ’ ’

After judgment was obtained by confession on said note, appellant made a motion to open up the judgment and to be permitted to plead. The motion was allowed and appellant filed a number of pleas. The defenses relied upon by appellant are that there was no consideration for the, note, that the bank was guilty of compounding a felony and that appellant Rosenkrans executed the note under duress. A trial was had by the court, without the intervention of a jury, and the court found for appellee and against appellant and rendered judgment accordingly for the sum of $5,766.-39, from which judgment appellant prosecutes this appeal.

The evidence shows that Mrs. T. Clyde, Strait, who was the wife of T. Clyde Strait, was, the daughter of appellant, who- lived at Paw Paw, Lee county, Illinois, about forty miles from Princeton, Illinois. Strait and his family lived on a farm near the village of Lamoille, which was about half way between Princeton and Paw Paw. On April 12, 1921, appellee held several notes against Strait and wife amounting to $4,144.50 for money loaned. Strait applied to appellee to increase the debt to- $5,000, stating that he would give the appellee a new note and have his wife and appellant sign as security. On that date a judgment note for $5,000 due six months after date was drawn and delivered to Strait. On the following day Strait returned to the bank with the note and it appeared to be signed by Strait first, appellant second, and Mrs. Strait third. Upon the, delivery of the note the appellee canceled and delivered to Strait the old notes and placed to his credit in the checking account $853.50. On August 29, 1921, appellee received a letter from Strait asking for a renewal of the note" until the following December at which time he promised to pay $2,500. On the same date this letter was received from Strait, appellee wrote to appellant informing him that it held a note for $5,000 signed by him and Mr. and Mrs. Strait, which note would be due October 12, and that the appellee had received word from Strait asking for a renewal of the note until December, at which time he would pay $2,500 and stating that if it was satisfactory to appellant the bank would grant the extension. On the next day, August 30, 1921, appellant went to the bank and had a talk with L. R. Davis, the president, and A. W. Anderson, the cashier, in which appellant stated that his name had been forged to the note. There was considerable discussion between the parties with reference to the seriousness of the charge and the effect it would have upon Strait and his family. Appellant offered appellee $2,000 to surrender the note, which was refused. He then offered $3,000, which was also refused. The officers of appellee then suggested that the bank would be willing to take a note for $5,000, due in two years, signed by appellant securing the payment of the forged instrument. After further discussion appellant agreed to execute this note and it is claimed by appellee that" it was then agreed that both notes should be held by appellee and that appellee was to collect from Strait whatever amounts could be secured, and any payments made should be indorsed upon both notes. There is some dispute as to whether it was at that time agreed that the question of this forgery should be kept a secret so as not to injure Strait and his family. A note for $5,000, dated August 30, 1921, due in two years, was then prepared and was signed by the appellant. After the judgment clause was the following: “This note is given to' secure a note and any renewals thereof dated April 12,1921, due six months after date, signed T. Clyde Strait, Anson Rosenkrans and Mrs. T. Clyde’ Strait.”

Strait did not pay $2,500 in December, and shortly before January 1,1923, made a sale of all his property and removed with his family from the State. From August 30,1921, to April 18,1923, there was some cor-. respondence between appellee and appellant with reference to the note, but after Strait and his family left the State appellant notified appellee that he considered the incident closed and he was not liable to appellee in any amount.

The note for $5,000 dated April 12, 1921, which appellant claims was a forgery, was declared upon by appellee and appellant defended upon the ground that he did not execute the same. Judgment, however, was obtained in the circuit court of Bureau county and an appeal was prosecuted to this court where the judgment of the circuit court was reversed and the cause remanded. The opinion is reported in 232 Ill. App. 632. In the decision in that case the court, among other things, said:

‘ ‘ * * * The next question is whether or not the evidence admitted tending to show ratification was sufficient to make appellant liable for the payment of the forged note. It must be conceded that appellant did not sign this note. He repudiated it from the beginning. He first offered $2,000 for its surrender. He then offered $3,000. Both offers were refused. These offers were not agreements to pay and did not constitute a ratification. Appellee then suggested that appellant sign a new note for $5,000 due in two years, securing the payment of the forged note or any renewal thereof, and the new note was executed. In connection with this new note it was agreed that appellee should collect from Strait what he could on the forged note and any payments made were to be credited on both notes. The fact that nothing was collected or credited does not change the effect of the agreement. Any balance due was to be paid by appellant on the new note. He did not recognize or ratify the forgery. He expressly repudiated it. He executed Ms own note in lieu thereof, and by so doing made himself personally liable to pay the $5,000, not upon the forged note, but upon the note which he personally executed. For this reason the, evidence admitted did not show a ratification of the forged note so as to make the appellant personally liable thereon, but the evidence did show that a new note was given by appellant and upon tMs new note his liability must be based.”

It is evident that the main thing wMch appellant deisired was that secrecy should be maintained in order that his son-in-law and daughter might not be known as forgers. He gave the note-involved in this case to the bank in order to protect the names of, his family. When he executed the $5,000 note in controversy he was asked if he did not want the forged note and he said, “I would rather have you keep the note. I feel you can collect the money better than I can.”

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Cite This Page — Counsel Stack

Bluebook (online)
240 Ill. App. 230, 1926 Ill. App. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-national-bank-v-rosenkrans-illappct-1926.