Great Western Land & Improvement Co. v. Sandygren

252 P. 123, 141 Wash. 451, 1927 Wash. LEXIS 1015
CourtWashington Supreme Court
DecidedJanuary 4, 1927
DocketNo. 19463. En Banc.
StatusPublished
Cited by7 cases

This text of 252 P. 123 (Great Western Land & Improvement Co. v. Sandygren) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great Western Land & Improvement Co. v. Sandygren, 252 P. 123, 141 Wash. 451, 1927 Wash. LEXIS 1015 (Wash. 1927).

Opinions

*452 Parker, J.

The plaintiff, Great Northern Land & Improvement Company, commenced two separate actions seeking, recovery upon two promissory notes executed and delivered by the defendant, Mrs. Sandygren, to O.-W. Brockman, by him transferred to the First’ Exchange National Bank of Coeur d’Alene, Idaho, .and by that bank transferred to the plaintiff improvement company. One of the notes is for the principal sum of one thousand dollars and one for the principal sum of four thousand dollars. The two actions were consolidated for the purpose of trial, and were so tried in the superior court for Spokane county sitting with a jury.

The notes were executed and delivered on the same date by Mrs. Sandygren to Brockman for a single purchase by her of shares of stock in an oil company. The notes fell due at different dates, which seems to account for the commencement of separate actions thereon. The defense is, in substance, that Brockman made false áñd fraudulent representations to Mrs. Sandygren touching the condition of the oil company’s properties and resources, which were in fact worthless, and by Such false and fraudulent representations induced her to execute and deliver the notes to him as the purchase price of the stock; and also that both the Idaho bank and the improvement company did not acquire the notes in good faith, but with knowledge of such fraudulent acquisition of them by Brockman.

At the conclusion of the trial the jury returned a general verdict reading as follows:

“We, the jury in the case of Great Western Land & Improvement Co., plaintiff, vs. Amanda Sandygren, Defendant, find for defendant.”

Accompanying this general verdict, the jury returned answers to five special interrogatories as follows:

*453 “Special Verdict No. 1
“Did the First Exchange National Bank of Coeur d’Alene, Idaho, purchase the two notes here in suit?
“Answer: Yes.
“Special Verdict No. 2
“If you answer special verdict No. 1 in the affirmative, state when and for what amount said notes were purchased by the First Exchange National Bank of Coeur d ’Aleñe, Idaho.
“Answer: $4,100.
“Special Verdict No. 3
“If you answer special verdict No. 1 in the affirmative, state if the First Exchange National Bank of Coeur d’Alene, Idaho, purchased said notes in good faith?
“Answer: No.
“Special Verdict No. 4
“If you answer special verdict No. 1 in the affirmative, state if the First Exchange National Bank of Coeur d ’Aleñe, Idaho, had at the time of purchase any notice of any alleged false and fraudulent representations made by Brockman to the defendant by which she was induced to sign the notes ?
“Answer: No.
“Special Verdict No. 5
“If you answer special verdict No. 4 in the negative, then answer if the plaintiff was a party to any fraud or illegality affecting these notes ?
“Answer: Yes.”

While there was but one set of these special and general verdicts, they are all treated by the court and the parties, as they manifestly were intended by the jury, as being applicable to both actions. Counsel for the improvement company moved for judgments in its favor upon the special verdicts notwithstanding the general verdict, upon the theory that the special verdicts are inconsistent with the general verdict and are such as to entitle the improvement company to judgments awarding to it recovery upon the notes. Counsel for Mrs. Sandygren moved for judgments in her favor *454 upon the general verdict, upon the theory that the special verdicts are not so inconsistent therewith as to render the general verdict of no effect; and, in the event of that motion being denied, that she be awarded a new trial. The trial court granted the improvement company’s motion for judgments upon the special verdicts notwithstanding the general verdict, and rendered a judgment in each action awarding recovery against Mrs. Sandygren upon the respective notes with interest, attorney’s fees and costs; denied her motion for judgment upon the general verdict and also denied her alternative motion for a new trial. From this disposition of the actions by the superior court, Mrs. Sandygren has appealed to this court.

As we view this record and the argument of respective counsel, our problem seems to be this: (1) As to whether or not the special verdicts clearly, affirmatively call for judgment as rendered by the trial court in favor of the improvement company notwithstanding the general verdict in favor of Mrs. Sandygren. (2) If that inquiry be answered in the negative, then as to whether or not the special verdicts are, in any event, so inconsistent with the general verdict and with each other as to negative the right of Mrs. Sandygren to have judgment rendered upon this record in her favor; and (3) If that inquiry be answered in the negative, what disposition should be made of the case by us.

Special verdict No. 1, that the Idaho bank purchased the notes, is, of course, not inconsistent with the general verdict in favor of Mrs. Sandygren, since the bank, and also the improvement company, upon sufficient showing, could be charged with notice of infirmity in the notes, as well as Brockman, as the original payee, could be so charged.

Special verdict No. 2, that the notes were purchased for four thousand one hundred dollars, is not incon *455 sistent with the general verdict in favor of Mrs. Sandygren. Indeed, it lends some support to the general verdict, since it finds, in effect, that the notes were purchased at the somewhat large discount of eighteen per cent, which is a circumstance lending some support to the general verdict in favor of Mrs. Sandygren, though not at all conclusive in her favor. First National Bank of Ritzville v. Egbers, 130 Wash. 221, 226 Pac. 492.

Special verdict No. 3, that the Idaho bank did not purchase the notes in good faith, is not inconsistent with the general verdict in favor of Mrs. Sandygren. That special verdict, standing alone, supports the general verdict.

Special verdict No. 4, that the Idaho bank, at the time of purchasing the notes, had no notice of any alleged false and fraudulent representations made by Brockman to Mrs. Sandygren by which she was induced to sign the notes, is inconsistent with the general verdict in favor of Mrs. Sandygren. That special verdict, standing alone, would call for the judgment which was rendered in favor of the improvement company notwithstanding the general verdict in favor of Mrs. Sandygren.

Special verdict No. 5 has no other effect than to place the improvement company in the shoes of the Idaho bank; that is, to render the improvement company chargeable with notice of infirmities in the notes as the Idaho bank was so charged.

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Bluebook (online)
252 P. 123, 141 Wash. 451, 1927 Wash. LEXIS 1015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-western-land-improvement-co-v-sandygren-wash-1927.