First National Bank v. Ayoutt

110 P.2d 243, 166 Or. 99, 1941 Ore. LEXIS 59
CourtOregon Supreme Court
DecidedJanuary 14, 1941
StatusPublished

This text of 110 P.2d 243 (First National Bank v. Ayoutt) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank v. Ayoutt, 110 P.2d 243, 166 Or. 99, 1941 Ore. LEXIS 59 (Or. 1941).

Opinion

KELLY, C. J.

On or about July 25,1935, one Dave Vadnais ordered of the firm, doing business under the name of Mammoth Garage at Lakeview, Oregon, one International Motor truck for which he agreed to pay the total sum of $1,982.

■When said order was given, C. D. Arthur and Paul M. Drenkel comprised the firm doing business at Lake- *101 view under the name of Mammoth Garage. This action was instituted on November 30,1937. Mr. Arthur died on or about August 19, 1938, and the First National Bank of Portland was appointed as executor of the last will and testament of said C. D. Arthur, deceased, and administrator of the estate of C. D. Arthur and Paul M. Drenkel, doing business under the assumed name of Mammoth Garage. On November 15, 1938, said First National Bank of Portland, as such administrator was substituted for Messrs. Arthur and Drenkel as plaintiff herein.

The truck so ordered was furnished by the International Harvester Company of America having branch offices and a place of business in Portland, Oregon. The firm known as Mammoth Garage were the agents, at Lakeview, of said International Harvester Company, for the sale of International trucks.

A note for $1,370.35 payable in nine installments of $137 each and a final installment of $137.35, and a chattel mortgage upon said International truck were executed by said Vadnais and Paul M. Drenkel to Mammoth Garage as security for part of the purchase price of said truck. This note and the mortgage securing it were assignéd to the International Harvester Company. Vadnais agreed to pay Mammoth Garage the remainder of the purchase price of said truck, namely, $611.65 within thirty days. On August 16,1935, Vadnais executed his promissory note to Mammoth Garage, in the body of which the principal sum of the note is designated as Six Hundred and 65/100 Dollars, while on the upper left-hand corner of the note, where the principal sum is indicated in figures, it appears as $611.65. This note was executed at the instance of an agent of the Mammoth Garage and was made payable thirty days after the date thereof.

*102 On the 28th day of June, 1935, Mammoth Garage delivered to said Vadnais a Beall single axle logging trailer, serial No. 107, for which Vadnais agreed to pay $750.

The Mammoth Garage also secured for Vadnais a certain lumber roll and paid the freight upon it from Lakeview to Coquille or Marshfield.

At the time of the foregoing transaction, Vadnais paid Mammoth Garage approximately $189, which was credited upon the account for freight and for said lumber roll.

Vadnais made some payments upon the chattel mortgage, but was in default most of the time. r

Defendant, Ayoutt, worked part of the time for Vadnais operating the truck and trailer in suit.

On June 11, 1936, Vadnais wrote the following letter:

“Coquille Ore
June 11-36
Dear Paul;
I havent been working steady & it been raining lately & it will be a while before my job will start & its such a long haul that a single axle trailer would not be any good on it. So I wish you would turn it over to Joe Ayoutt for he has a real good job for a single axle trailer I haven’t any money to make my payments & you said you would not wait any longer & I don’t blame you, but it has been tough here this spring so much rain. Joe has a good job & will make good money & he is working for a good reliable man the man name is Mr. McCarthy I have turned over all my rights if I have any to Joe & youvso it will be up to you. I hope you will give Joe a chance for I know he can make it.
Tours truly
DaveVadnais”

*103 The Paul to whom the foregoing letter is addressed is Mr. Paul Drenkel, one of the firm doing business under the name of Mammoth Garage.

It appears that when the truck was delivered to Vadnais at Bandon defendant Ayoutt was present. The down payment was mentioned at that time and so was the payment due the International Harvester Company.

Mr. Ayoutt, the defendant herein, took the above quoted letter from Vadnais to Drenkel to Lakeview and presented it to Mr. Drenkel. Mr. Ayoutt then told Mr. Drenkel that he would make the $137 payments to the International Harvester Company and also give Mr. Drenkel $100 within one month as part payment on the trailer.

In answer to a request by his counsel to relate the whole conversation, Mr. Drenkel said:

“Joe Ayoutt told me he had a good job; he could pay it out better than Dave could if he took it over according to Dave’s letter. That is what he wanted to do, take it over; he could pay for the thing and Dave could not.”

We quote further from Mr. Drenkel’s testimony:

“The Court: Anything else?
A. That is practically all. He was in a hurry to get home.
The Court: Well you said something about his wanting something to show he had a right to take it.
A. I wrote him out a little note and told him the Harvester Company — that this contract would have to be changed with them. Then we found out from the Harvester Company that they would not accept Joe Ayoutt, but they told him he could go on and make Dave Vadnais’ payments and leave it as it was.”

Over defendant’s objection, Mr. Drenkel then testified that defendant Ayoutt at that time promised to pay the down payment on the truck.

*104 Before plaintiff’s ease in chief was concluded, it was conceded that plaintiff had repossessed the trailer in suit and that the amount due to the International Harvester Company upon the chattel mortgage executed by Mr. Drenkel and Mr. Vadnais had been fully paid by Vadnais and defendant.

The determinative question, therefore, is whether defendant Ayoutt is chargeable with the indebtedness originally incurred by Vadnais and termed the down payment in this record. It will be recalled that Mr. Vadnais did not make payment of any part of this indebtedness which amounted to $611.65; but, approximately a month after he had received the truck, he executed a promissory note therefor.

A careful perusal of the record fails to disclose any memorandum in writing signed by defendant expressing the consideration and agreeing to assume this obligation of Vadnais.

Neither does the record disclose a novation. It nowhere appears that Mammoth Garage agreed to release Vadnais from liability for the item known here as the down payment, and accept defendant as its debtor in place of Vadnais. Vadnais secured his release by taking the benefit of bankruptcy, about two months before this action was instituted.

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Bluebook (online)
110 P.2d 243, 166 Or. 99, 1941 Ore. LEXIS 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-ayoutt-or-1941.