First National Bank v. Dusy

42 P. 476, 110 Cal. 69, 1895 Cal. LEXIS 1019
CourtCalifornia Supreme Court
DecidedNovember 14, 1895
DocketNo. 18409
StatusPublished
Cited by26 cases

This text of 42 P. 476 (First National Bank v. Dusy) is published on Counsel Stack Legal Research, covering California 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. Dusy, 42 P. 476, 110 Cal. 69, 1895 Cal. LEXIS 1019 (Cal. 1895).

Opinion

Haynes, C.

Action to foreclose a mortgage and a pledge of water stock. Findings and decree passed in favor of the plaintiff, and Busy, the debtor and mortgagor, appeals from the judgment and from an order denying a new trial. The demand sought to be fore^ closed was a promissory note for $1,900, made by Busy to the plaintiff Becember 28, 1889, payable on demand. Said note also provided that in case of suit a reasonable attorney’s fee should be allowed by the court. As security for the payment of this note, Busy assigned to the bank sixteen and one-half shares of the capital stock of. the Fowler’s Switch Canal Company.

The complaint further alleged that on Becember 20, 1892, defendant Busy, as further security for the pay. ment of said note, executed and delivered to O. J. Woodward his promissory note of that date for $4,500, payable on demand, and at the same time executed to said Woodward a mortgage on certain real estate therein.described, vwhich note and mortgage Woodward duly assigned and [71]*71transferred to the plaintiff, and prayed for judgment for the amount of said first-named promissory note with interest as therein provided, and for the sum of $200 as a reasonable attorney’s fee in the action, and that said mortgaged premises and said water stock be sold to satisfy the same. Defendant’s demurrer to the complaint was overruled, and defendant Dusy answered and denied that the mortgage described in plaintiff’s complaint is a lien on any of the property described therein; and also denied that the note for $4,500 and the mortgage were executed to Woodward to secure the payment of said $1,900 note, and alleged that said $4,500 note and mortgage were delivered to Woodward in trust to take up and deliver to the defendant three of defendant’s promissory notes, one of said notes being the one for the sum of $1,900 mentioned in plaintiff’s complaint, and that all three of said notes aggregate the sum of about $4,500; that Woodward violated said trust in that he failed to take up said notes, or either of them, and that he had placed said mortgage on record as a lien on defendant’s property, and that he transferred said $4,500 note to plaintiff without the knowledge and consent of the defendant, and in violation of his said trust and agreement; that the bank took said transfer with full knowledge of the trust and agreement between Woodward and defendant, and that said note and mortgage were without any consideration whatever.

Defendant also filed a cross-complaint setting out substantially the same facts, and prayed for judgment against the plaintiff for his costs. Plaintiff answered the cross-complaint, denied that Woodward agreed in any way whatever to take up or cancel any of defendant’s notes as a condition of the execution of said note and mortgage, and alleged, as was alleged in the complaint, that defendant executed and delivered said note and mortgage as further security for the payment of said note for $1,900.

The findings were in favor of the plaintiff upon all the issues, and judgment was entered thereon. It ap[72]*72peared from the evidence that at the time the note for $4,500 and the mortgage to secure the same were executed, that Busy was indebted to the Bank of Selma upon two promissory notes, one for the sum of about $1,300 and the other for $800, and interest on each of them; that one of these notes was secured by a pledge of stock in the Fowler’s Switch Canal Company, and the other by a mortgage upon the same property mortgaged to Woodward; that Woodward was a director in the Bank of Selma, and was president and general manager of the First National Bank of Fresno, the plaintiff in this action, and that his intention was to have this mortgage as additional security for defendant’s indebtedness to the Bank of Selma, as well as for the $1,900 note held by plaintiff; but the Bank of Selma was satisfied with the security already held by it, and declined to avail itself of the additional security, and, in this action, the plaintiff only sought to recover the amount due upon the $1,900 note, together with its costs and a reasonable attorney’s fee as provided for in said $1,900 note, as well as in the collateral note and mortgage.

The court did not err in admitting in evidence the collateral note and mortgage. That, as well as the $1,900 note, was set out in the complaint, and as it was conceded in the complaint that appellant’s indebtedness to the plaintiff was only the amount of the original note and interest, and as only that sum was recovered, appellant was not prejudiced by any of the rulings upon the admission of evidence specified by appellant, whether they were technically correct or not. They need not, therefore, be considered in detail. . It does not appear that it would have benefited appellant if plaintiff or Woodward had paid the claims held by the Bank of Selma, and, as the court found upon sufficient evidence that Woodward did not agree to pay those claims, appellant was not prejudiced by the ruling of the court upon the question whether he had paid them.- These remarks-also dispose of the questions put to Stroud in relation to the same matter.

[73]*73It is also specified by appellant in his statement on motion for a new trial that the decision of the court is against law, in that the pleadings and evidence in said action show that defendant, to secure the $1,900 note, delivered to plaintiff sixteen, and one-half'shares of the Fowler’s Switch Canal Company’s stock, and that no finding is made in regard thereto, and that the judgment neither orders said shares of stock to be sold nor to be delivered to defendant, and that said shares of stock are left in the hands of plaintiff without any consideration to defendant.

The third finding is to the effect that appellant assigned said stock to the plaintiff, and that plaintiff now holds said stock as security, and that said stock is evidenced by the certificate issued to O. J. Woodward, as trustee, and numbered 463. It is true, however, that neither the order for judgment nor the judgment as entered made any disposition of said stock; and this omission presents the principal question in the case.

The findings in said cause were filed and judgment entered on the 28th of April, 1894, and notice of defendant’s intention to move for a new trial was given on May 8th. Appellant’s statement on motion for a new trial was served on plaintiff’s attorney June 6, 18$4. On June 18, 1894, the plaintiff served and filed notice that on the 23d of June,' 1894, the plaintiff would move the court to amend the conclusions of law filed in said action by inserting after the word “ mortgage,” in a designated place, the words together with the said sixteen and one-half shares of stock”; and also to amend the judgment herein by inserting in a designated place the words “ together with the sixteen and one-half shares of stock also described therein.” This motion was based upon an affidavit made by counsel for the plaintiff, “ that by mistake and inadvertence said court omitted to find, as a conclusion of law, that the said plaintiff is entitled to have said shares of stock sold, and the proceeds applied to satisfy said judgment so made and entered herein, and, by like inadvertence* [74]*74the judgment so made, given, and entered herein failed to provide that said shares of stock be sold, and the proceeds applied to the payment of said judgment.”

Defendant’s counsel objected to the consideration of the motion: 1.

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Bluebook (online)
42 P. 476, 110 Cal. 69, 1895 Cal. LEXIS 1019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-dusy-cal-1895.