Gaar, Scott & Co. v. Vanhook

172 S.W. 680, 162 Ky. 332, 1915 Ky. LEXIS 77
CourtCourt of Appeals of Kentucky
DecidedJanuary 26, 1915
StatusPublished
Cited by4 cases

This text of 172 S.W. 680 (Gaar, Scott & Co. v. Vanhook) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gaar, Scott & Co. v. Vanhook, 172 S.W. 680, 162 Ky. 332, 1915 Ky. LEXIS 77 (Ky. Ct. App. 1915).

Opinion

OPINION op the CouRT by

Judge Carroll

Affirming.

The appellee, Vanhook, in June, 1908, purchased from the appellant, G-aar, Scott & Company, a threshing out[333]*333fit for $1,810, for which amount ho executed several notes, and to secure the payment of these notes he executed a mortgage on the purchased property. On October 13, 1910, the company brought suit against Vanhook to obtain judgment for the balance due on its notes, which at that time amounted to some $1,400, and it asked for a receiver and that the mortgaged property be sold to pay the debt.

A few days after this, suit was filed Vanhook, by a paper signed by him, entered his appearance to the action and consented to the submission of the case at the court which was then in session, and on the day following the filing of this paper judgment went against Van-hook for the amount due on the notes, and an order was made directing the commissioner of the court to sell the mortgaged property.

In November, 1910, the property ordered to be sold, after having been first appraised at $700, was offered for sale as directed in the judgment, and the company became the purchaser at the price of $475. Subsequently this sale was confirmed.

In September, 1912, Vanhook filed in the Scott Circuit Court a suit in which he averred, in substance, that an agent of the company approached him on or about October 19, 1910, and told him that unless he paid or secured the unpaid notes due for the threshing outfit a suit would be filed to enforce the mortgage lien, but that if he would give up the machinery without a suit th<? company would accept it in full* settlement of the balance due it, and thereupon he agreed to surrender the machinery in full settlement of the balance due by him to the company.

He further averred that the ¿gent requested him to sign a paper showing that he had given up the machinery, and thereupon produced a writing which he represented to him was merely an agreement on his part to surrender any claim he had against the machinery and permit the company to take it in full settlement of its debt.

He further averred that by the fraud and over-reaeh- • ing of the agent of the company he was induced to sign the paper believing that it was, as before stated, merely an agreement on his part to surrender the machinery in settlement of the debt, when, in fact, it was an answer-to the petition entering his appearance to the action. That the judgment was entered against him in the suit [334]*334after the matters between himself and the company had been settled, as before stated, and that he did not know until long after the judgment had been entered, nor until an effort was made by the company to collect the balance due on the judgment after crediting the amount of the proceeds of the sale, that a judgment had been entered against him. He asked that the judgment be set aside and that he be granted a new trial in the action and given an opportunity to defend same, and for all proper relief.

In its answer, filed after a demurrer to the petition as amended had been overruled, the company, after denying all other averments of the petition, admitted that Layton, its agent, did procure the signature of Vanhook to the paper which was filed, and further averred that when the property was sold in November, 1910, Vanhook, who was paid by the commissioner of the court for so doing, brought the property to the place appointed by the commissioner for the purpose of selling it and was present at the sale, but did not make any objection thereto.

The evidence of Vanhook is that Layton told him when he brought the paper to him to sign that it was to show that he had given up the machinery, and that if he would sign it it would save the costs of a suit and would settle the debt.

• He further said that at the time he signed the paper he did not know that suit had been brought against him or that the paper he signed was an answer in the suit,' nor did he know it until several months afterwards when he discovered, through the fact that an execution had been levied on an interest he had in some land, that suit had been brought and judgment rendered. He further said that Layton read the paper to him, but he did not understand its meaning,. and that he signed it because Layton advised him to do so and he believed it was a final settlement of the debt. He further testified that, .although he sent the machinery to Georgetown so that it might be sold by the commissioner, he was not present at the sale, although he knew on the day the sale was made that the property had been sold and bought in by the company.

Layton testified, in substance, that he took the paper signed by Vanhook to have him sign it at the request of the attorney who brought this suit, in order that a judgment might be entered in the case at the term of court then in session without postponing the judgment until the [335]*335next term of the court, which would have been necessary except for the fact that the paper had been signed, as a summons could not be executed on Vanhook in time to get judgment at that term of the court. He said he had a very slight acquaintance with Vanhook, and denied that he made any representations whatever to him except to tell him that suit had been filed and that if he signed the paper a judgment would be rendered at the term of the court then in session and time and expense would be saved in that way, that the object in having the judgment of sale at that term of court was to allow the machinery to be sold and save the cost of putting it in the hands of a receiver.

F. M. Thomason, the commissioner of the court, said that before selling the property he wrote to Vanhook asking him to bring it to Georgetown on or before the day set for the sale, and that Vanhook told him over the telephone that a Mr. Steger would bring it in provided he, Thomason, would pay the charges, which he agreed to do, and did.

Upon the pleadings and evidence the court adjudged that Vanhook was entitled to a new trial of the original case of the company against him, and ordered that the judgment in favor of the company be set aside and that Vanhook be given until the first day of the next term to file an answer to the original suit of the company.

Section 518 of the Civil Code provides that “The court in which a judgment has been rendered shall have power, after the expiration of the term, to vacate or modify it * # # for fraud practiced by the successful party in obtaining the judgment.”

Section 520 provides that “The proceedings to vacate or modify the judgment * * * shall be by petition verified by affidavit, setting forth the judgment, the grounds to vacate or modify it, and the defense to the action if the party applying was defendant.”

Section 521 provides that “A judgment shall not be vacated on motion or petition until it be adjudged that there is a valid defense to the action in which the judgment is rendered.”

And Section 522 provides that “The court may decide upon the grounds to vacate or modify a judgment before deciding upon the validity of the defense or cause of action.”

[336]*336Under these code provisions the defendant seeking* to set aside a judgment on the ground of fraud must state in his petition sufficient grounds to authorize the vacation.

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Cite This Page — Counsel Stack

Bluebook (online)
172 S.W. 680, 162 Ky. 332, 1915 Ky. LEXIS 77, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gaar-scott-co-v-vanhook-kyctapp-1915.