Gravelle v. Pollock Stores Co.

1928 OK 229, 267 P. 473, 131 Okla. 20, 1928 Okla. LEXIS 555
CourtSupreme Court of Oklahoma
DecidedApril 3, 1928
Docket17350
StatusPublished
Cited by2 cases

This text of 1928 OK 229 (Gravelle v. Pollock Stores Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gravelle v. Pollock Stores Co., 1928 OK 229, 267 P. 473, 131 Okla. 20, 1928 Okla. LEXIS 555 (Okla. 1928).

Opinion

HEFNER, J.

The Pollock Stores Company sued Gravelie and Hamblin on an open account. The defendants were engaged in the construction of a hard-surfaced road and A. W. Scott was a subcontractor on a portion of the construction work. The plaintiff alleged that the defendants, in company with A. W. Scott, came to its place of business and instructed it to furnish goods for the purpose of aiding in the construction of the highway to the order of A. W. Scott and that the. defendants agreed fto stand ¡responsible for the payment of the goods; and that the instructions were oral. Upon such request the plaintiff furnished to A. W. Scott merchandise in the aggregate sum of $821.-82. The itemized statements were attached as exhibits to the petition and made a part of it. The exhibits consisted of 13 separate statements. The first one, in the sum of approximately $34, was charged as follows: ‘‘A. W. Scott c/o Gravelie & Hamblin. In account with Pollock Stores Company.” The other 12, constituting the balance sued for, were charged as follows: “A. W. Scott, In account with Pollock Stores Company.”

The defendants denied that they requested the plaintiff to furnish merchandise to A. W. Scott; and also denied that they agreed to stand responsible for the payment of the same. They made the further defense that if they had made the agreement as alleged by plaintiff, the same was unenforceable by reason of subdivision 2 of section 5034, C. O. S. 1921, which, in substance, provides that a promise to answer for the debt of another is invalid unless the same or some memorandum thereof be in writing and subscribed by the party to be charged or by his agent.

On the case being submitted to the jury, a verdict was returned by it against the defendants for the full amount sued for and judgment was entered by the court in accordance with the verdict. From which judgment, the defendants have appealed to this court.

If the- plaintiff extended the credit to the *21 defendants and not to A. W. Scott, tlie judgment of the trial court should be affirmed. If, on the other hand, the credit was extended to A. W. Scott and the defendants agreed to guarantee the payment of the merchandise sold to him, then the contract falls within the statute of frauds and cannot be enforced, and, if this be true, the court should have instructed the jury to return a verdict for the defendants.

If the debt was not a direct obligation of the defendants, but a promise by them to stand responsible therefor, then the same was unenforceable by reason of the statute of frauds, because the same was oral and not in writing.

In testifying about the arrangements for the credit, Mr. Pollock, the owner of the store, testified in part as follows:

“Q. Did he tell you he would pay for it then? A. He told me he would be responsible for it. Q. He told you he would be responsible for it? A. Tes, sir. Q. What do you mean by responsible? A. That is the word he said. * * * Q. They (meaning the merchandise) were charged to Scott? A. Tes, sir.”

Further light is thrown on the original agreement in a letter that was written by Mr. Pollock to the defendants about the time the dispute came up over the Scott account. A portion of it is as follows:

“* * * On the other hand, if you intended to say to our Mr. Metz that you did not, guarantee this account, I must remind you that you did. * * * Now, if there is to be any question at all about the guarantee, I trust that you will make yourself clear fight now and should we differ as to the conversation you had with me, we might as well let the courts decide now as later.”

Mr. Metz, who testified for the plaintiff and was its bookkeeper, in his testimony used this language:

“No. He told me before that they (Gravelle & Hamblin) stood behind this account, and Scott told me they owed him enough money to pav that. * * * In otu»'words, he (meaning Mr. Pollock). told me this: that Gravelle would see that it was paid, and as a matter of fact we charged Scott’s to Scott, Richardson’s to Richardson, and Moots” to Moots, so as to keep a different account with all the contractors.” (C. M. 51.)

The defendants assign as error the court’s refusal to instruct the jury to return a verdict in favor of the defendants.

The syllabus in the case of Gales v. Gray, 105 Okla. 54, 231 Pac. 300, is as follows:

“Where one person orally assumes an obligation to pay a debt created by a benefit extended to another, if such oral contract creates an original liability on the part of such promisor and credit is extended to him, such contract does not fall within the statute of frauds. If the intention of the parties, however, was that the promisor should only be collaterally liable, and pay only in case of default of the person receiving the benefit to whom credit was extended, then such parol contract would be within the statute of frauds and void.
“Ordinarily the question whether or not the promise of the person| sought to be bound is direct or collateral is a question to be submitted to the jury, but where under all the testimony all reasonable persons must reach the conclusion that the liability was collateral, a demurrer to the testimony of the plaintiff should be sustained by the court.”

The plaintiff did not charge the 'goods to the defendants, but charged them to A. W. Scott. This in itself is an indication that the original credit was extended to Scott and not to the defendants. Mr. Pollock, when testifying about the arrangements for the account of A. W. Scott, testified that the defendants said they would be “responsible” for the payment of the account. He was then asked, “What do you mean by responsible!?” His answer was, “That is tlie word he (meaning the defendant) used.”

In the letter that Mr. Pollock wrote to the defendants he stated that they had “guaranteed” the account. “Guarantee” in its common acceptation is understood to mean an undertaking to answer for the payment of some debt, or the performance of some duty, of another, in the case of the failure of such other to pay or perform. Cochran’s Law Lexicon defines “guarantee” as, “A promise to a person to be answerable for the payment of a debt, or the performance of a duty by another, in case he should fail to perform his engagement. It may be for a single act, or be a continuing guaranty, covering all transactions of like kind and to a like amount until revoked by the guarantor.”

The evidence is convincing that the credit was extended to A. W. Scott and that the defendants guaranteed the payment of the merchandise sold to him. While the evidence is thus convincing, it cannot be said that under all the testimony all reasonable persons must necessarily reach the conclusion that the original credit was extended to Scott and not to the defendants. Ordinarily the question of whether or not the promise of the person sought to be bound is direct or collateral is a question to be submitted *22 to the jury. Since it cannot he said that all reasonable persons must reach the conclusion that the original credit was extended to Scott and not to the defendants, it was the duty of the court to submit to the jury for their determination the question as to whether or not the obligation of the defendants was direct or collateral.

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Cite This Page — Counsel Stack

Bluebook (online)
1928 OK 229, 267 P. 473, 131 Okla. 20, 1928 Okla. LEXIS 555, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gravelle-v-pollock-stores-co-okla-1928.