Farmers' National Bank v. Tudor

183 N.W. 845, 48 N.D. 200, 1921 N.D. LEXIS 24
CourtNorth Dakota Supreme Court
DecidedJune 8, 1921
StatusPublished
Cited by4 cases

This text of 183 N.W. 845 (Farmers' National Bank v. Tudor) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court 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. Tudor, 183 N.W. 845, 48 N.D. 200, 1921 N.D. LEXIS 24 (N.D. 1921).

Opinions

Grace, J.

This appeal is from a judgment in plaintiff’s favor for $5,832. A statement of the material facts will lead to a clear understanding of the issues.

On November 8, 1917, the defendants purchased from W. H. Walters, at Pipestone, Minn., 31 registered cows and 24 registered calves. The agreed purchase price was $6,675. Of this amount the defendants paid $2,000 in cash at the time of the purchase, and after the cattle were shipped to North Dakota the defendants gave their note for $4,675, which was secured by a chattel mortgage on the above stock. The original number agreed to be purchased was 56 head, 32 cows, and 24 calves for $7,000, but before the sale was completed one cow died, and whole purchase price was reduced to $6,675.

Default was made in the terms and conditions of the mortgage, by [203]*203reason of the note and interest thereon not having been paid at maturity. The payee named in the note sold, assigned, indorsed, transferred, and delivered the note to the plaintiff, after the maturity of it.

It is admitted that plaintiff is the owner and holder of the note, and that, in its hands, it is subject to all the equities and defenses as if the litigation were between the original parties.

The defendants in their answer admit the execution and delivery of the note and mortgage, and made other admissions in their answer, not material here to notice, and, in addition thereto, interposed a general denial.

Defendants, further answering interposed a defense of breach of ■warranty. It is as follows:

“For a further answer to said complaint and as and for a defense to said .action and as and for an offset and counterclaim, the defendants allege:
“That immediately prior to and on the 8th day of November, 1917, the date upon which the said note was made and delivered, the defendants ■were seeking to purchase a herd of pure-bred registered cattle, with the intent, object, and purpose of establishing a stock breeding and stock sales her.d of pure-bred registered cattle near the village of Hunter, in the .county of Cass and state of North Dakota.
“That W. H. Walters, the original payee named in said note, then had and exhibited to the defendants at Pipestone, Minn., the said cattle ■mentioned and described in paragraph 4 of said complaint, with a view and object of selling them to the defendants for use in establishing and conducting such breeding and stock sales herd, said W. PI. Walters having been informed and then well knowing the intent, object, and purpose of the defendants as hereinbefore alleged, and said W. PI. Walters, in order to sell to defendants said cattle and with the intent and purpose of procuring and inducing them to purchase the same from him, represented, stated, and warranted that the said cattle were in good condition and in perfect health, and were free from disease, and were in every way all right, and that they were in all respects suitable for the establishment and conducting of such a herd and for the purpose of breeding pure-bred Aberdeen Angus registered cattle and selling the same to persons desiring to purchase cattle of such character and description for breeding and sales purposes.
“That the defendants, believing and relying upon such representations, statements, and warranty of the said W. H. Walters, and being induced [204]*204thereby, and not otherwise, purchased from him the said cattle at and for an agreed price of $6,675, and as a condition and as a part of said purchase contract and agreement the said W. H. Walters agreed to deliver to the said defendants all of the said cattle at the said Hunter, Cass county, N. D., the defendants agreeing to pay upon delivery, as aforesaid, for said cattle the sum of $2,000 in cash and the making and delivery of a promissory note and chattel mortgage of the kind and character severally described in the plaintiff’s complaint herein.
“That soon thereafter the said W. H. Walters did deliver to the defendants the said cattle, and the defendants in consideration thereof paid to him the said sum of $2,000, and made, executed, and delivered to him a note and chattel mortgage of the general character and description of those mentioned and described in the complaint in this action.
“That in truth and in fact the said cattle, on and immediately prior to the said 8th day of November, 1917, and thereafter, were not as represented, stated, and warranted by the said W. H. Walters to these defendants, as hereinbefore alleged, and were not in good condition and in perfect health, and were not free from disease, and were not all right, but in truth and in fact were in bad condition and in imperfect health, and were diseased, and a large proportion of them were then and subsequently afflicted with and affected by and had tuberculosis, and were not suitable for the establishment and conducting of a stock breeding and stock sales herd, and were not suitable and could not be used for breeding pure-bred Aberdeen Angus registered cattle and selling the same to persons desiring to purchase cattle of such character and description for breeding and sales purposes.
“That because of the misrepresentations, misstatements, and failure of warranty as to the condition of said cattle and of the health thereof, and because of the fact that said cattle were absolutely unfit and useless for the purpose for which they were purchased, as hereinbefore alleged, the defendants have been and were greatly damaged, and suffered great loss, in that they were compelled to and did pay freight from Pipestone, Minn., to Hunter, N. D., amounting to $45 upon those of such animals purchased, subsequently found to be tubercular, and did feed and care for animals last mentioned, from the time of purchase thereof until quarantined and condemned and slaughtered, at an expense ho defendants of $2,260, and did segregate and quarantine .all of said cattle for the purpose of ascertaining and determining the condition of each of the in[205]*205dividual members of said herd and to determine and eliminate from said herd such of the individual members thereof as were afflicted with tuberculosis, all of which they were required and compelled by the federal government and state authorities of the state of North Dakota, to" do, all at great sacrifice and expense in money and outlay in testing, caring for, feeding, and treating the said cattle; that in so doing it was ascertained that at least 21 head of said cattle were incurably afflicted with tuberculosis, and none of the same could be saved or used for the purpose for which they were purchased, as hereinbefore alleged, but could only be disposed of as tubercular cattle for killing purposes or condemned, and these defendants were compelled to and did dispose of and sell 21 head .of said cattle at great sacrifice, either for killing purposes as tubercular infected cattle or as condemned cattle, for the latter realizing only the value of the hides.
“That shortly subsequent to the purchase and delivery to them of these cattle the defendant purchased a registered Aberdeen Angus bull, as a herd bull to be used in breeding the cattle so purchased from said Walters.

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Bluebook (online)
183 N.W. 845, 48 N.D. 200, 1921 N.D. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-national-bank-v-tudor-nd-1921.