First National Bank v. Bertoli

92 A. 970, 88 Vt. 421, 1915 Vt. LEXIS 248
CourtSupreme Court of Vermont
DecidedJanuary 9, 1915
StatusPublished
Cited by9 cases

This text of 92 A. 970 (First National Bank v. Bertoli) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont 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. Bertoli, 92 A. 970, 88 Vt. 421, 1915 Vt. LEXIS 248 (Vt. 1915).

Opinion

Powers, C. J.

The evidence in the trial now under review tended to establish facts much like those shown in First National Bank v. Bertoli, 87 Vt. 297. So far as here required, these may be briefly restated as follows:

[423]*423The defendant’s husband owed a large debt at the plaintiff Bank; the defendant and one G-entili executed a $5,000 note, which Bertoli used to liquidate a part of this debt. This note was joint and several in form, and payable directly to the Bank; but in fact the defendant’s undertaking was one of suretyship for her husband. The $5,000 note was renewed from time to time, and finally taken up by the defendant’s sole note; this, in turn, was renewed several times, both before and after Bertoli’s death; and finally the defendant paid a part of the note, and gave the note in suit for the balance.

At some time after Bertoli’s death, the plaintiff’s cashier called upon the defendant, and in the presence of her daughter, Mrs. Beigant, asked her to pay the note. She replied that it did not belong to her to pay the note and she was not going to pay it. Whereupon, the cashier said, in substance, that the note was hers to pay and if she did not pay it, the Bank would take her home. Mrs. Beigant gave evidence to much the same effect, with the further statement that the cashier made some reference to the insurance money that Mrs. Bertoli had received. This testimony referred to the $5,000 note and came in under the plaintiff’s exception. It is now argued that it was wholly immaterial, and was prejudicial on account of its natural tendency to arouse the sympathy of the jury.

The ultimate fact to be determined by the jury was the true relation which Mrs. Bertoli occupied toward the indebtedness represented by the note in suit, — whether she was in fact a principal, or in fact a mere surety for her husband; and this question was to be determined by her true relation to the $5,000 note and its renewals. First Nat. Bank v. Bertoli, 87 Vt. 297. The fact that after Bertoli’s’death she paid a part of the last-named note with her own money, and gave the note in suit for the balance thereof, was a circumstance tending to show that that note represented her debt and not Bertoli’s. And the jury could and probably would consider it in that light. . To meet this, it was competent for the defendant to show the circumstances surrounding that transaction, and to give in evidence the cashier’s statements, which were calculated in some degree to influence her action. The suggestion regarding her home was one which the jury might well have considered in determining the evidentiary importance of her conduct.

[424]*424There was no error in admitting the testimony of the cashier that Bertoli, at the time the original $5,000 note was given, was owing the Bank a certain large sum of money. Manifestly, the defendant conld not have been a surety for Bertoli unless he was a debtor; so it was essential, as one step in her defence, for the defendant to show that Bertoli was indebted to the Bank. That the sum was specified did not affect the question.

Subject to the defendant’s exception, the plaintiff was allowed to show that the defendant had proved the claim growing out of this transaction against her husband’s estate. Thereupon, subject to the plaintiff’s exception, the defendant was allowed to explain why she did this. The admission of this was not error. The explanation seems to have been quite unnecessary, for the defendant, when she proved her claim, was only acting in strict accordance with her theory that she was a mere surety for Bertoli. And if such was the case, it was perfectly proper for her to prove the amount she paid on account of that suretyship against the estate of the principal. The explanation seems superfluous, but harmless.

If there was any error in admitting the testimony of the cashier regarding Mrs. Bertoli’s signature, the genuineness of which was admitted, it was harmless. Coolidge v. Taylor, 85 Vt. 39.

The plaintiff offered in evidence a mortgage given by Bertoli to the Bank on January 16, 1902, covering the Staples property, so-called, then standing in Bertoli’s name, and securing past and future indebtedness. In connection therewith the plaintiff offered to show that later on and before the original $5,000 note was givenj what was left of the Staples property (a part having been released from the mortgage) was conveyed subject to this mortgage, by Bertoli and wife to a third person, and by that third person back to Bertoli and wife, jointly; that the Bank’s mortgage thereon continued in force as long as Bertoli lived; that when the original $5,000 note was given, the Bank cancelled and surrendered the same amount in Bertoli’s notes secured under this mortgage. The argument is that when Mrs. Bertoli first became bound, the Bank discharged notes secured on'real estate in which she then had in interest, and of which she became the owner by right of survivorship, and that this fact made her note binding upon her. The offer was excluded and the plaintiff excepted.

[425]*425At the former trial this mortgage and connected facts were admitted; and this was held error. First National Bank v. Bertoli, 87 Vt. at p. 309. The case before us, however, differs somewhat from the one then presented. It then appeared that the transfer of the remainder of the Staples property through a third person to Bertoli and wife was after the original $5,000 note was given; it now appears that it was before that note was given. The other trial showed that the Staples property was subject to a homestead right when the mortgage on it was given; and that fact sufficiently appears from the record before us; for the mortgage to the Bank and the deed to the third person, referred to in the offer and made a part of the bill of exceptions, so describe it. It does not appear that it was worth more than $500. Mrs. Bertoli signed and acknowledged the mortgage to the Bank of the Staples property; she is suggested in the testatum, for it is in the plural; but she does not appear therein as a grantor, and for the reasons given in Dietrich v. Hutchinson, 73 Vt. 134, it must be held that this mortgage was, in legal effect, the sole deed of the husband, and therefore void. First National Bank v. Bertoli, 87 Vt. at p. 309. This being so, though she acquired a different interest under the conveyance from the third person before the Bank surrendered Bertoli’s notes in exchange for the $5,000 note, her property was not relieved of any burden by such surrender, for the reason that there was no legal burden resting upon it. Ib.

Various questions are raised under the charge of the court, but the only one we need take any time with, in view of our former decision, is the claim that the surrender by the Bank of the joint and several note of the defendant and Gentili and acceptance of the defendant’s sole note in lieu thereof'afforded a sufficient consideration for the latter and made it and its renewals valid and binding. This transaction, however, did not affect the defendant’s liability to the Bank. The true relation of Gentili to the original note and its renewals does not appear. In form, he was a joint and several promissor, and liable as such; but so far as Bertoli was concerned, he may have been, and most likely was a surety; and so far as Mrs. Bertoli was concerned, he may have been, and most likely was a surety rather than a co-surety. "Which facts may have been, and very likely were known to the Bank.

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Cite This Page — Counsel Stack

Bluebook (online)
92 A. 970, 88 Vt. 421, 1915 Vt. LEXIS 248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-bertoli-vt-1915.