Gregg v. Groesbeck

32 L.R.A. 266, 40 P. 202, 11 Utah 310, 40 P.R. 202, 1895 Utah LEXIS 61
CourtUtah Supreme Court
DecidedApril 27, 1895
DocketNo. 536
StatusPublished
Cited by4 cases

This text of 32 L.R.A. 266 (Gregg v. Groesbeck) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gregg v. Groesbeck, 32 L.R.A. 266, 40 P. 202, 11 Utah 310, 40 P.R. 202, 1895 Utah LEXIS 61 (Utah 1895).

Opinion

KiNG, J.:

Hyrum Groesbeok and Nicholas H. Groesbeck executed, their promissory note in favor of Henry M. Eyan and Alexander Wood. Plaintiff, in his complaint, alleges that he purchased said note, after its indorsement by the payees and P. H. Easche, for a valuable consideration, and before-maturity, and that said indorsement was a part of the consideration inducing the purchase. Defendant Eyan filed a separate answer, the other defendants having defaulted, in which he averred that .tbe defendant Easche sold and transferred said note to plaintiff, but prior thereto the defendant Eyan specially ordered and instructed him, in case he should sell or transfer said note, that at or before making such transfer he should erase Byan’s name from the back, as an indorser; that Easche expressly promised and agreed that he would do so, and would not transfer the note with Eyan’s indorsement thereon; that, at the time of the sale and transfer of the note to the plaintiff, he was expressly informed of the agreement, between Eyan and Easche, and the said instructions given by the former to the latter; that the plaintiff then purchased and received said note understanding that the transfer was to be without recourse upon the defendant-Eyan, and that the latter was not to be responsible .as an indorser; and that the plaintiff purchased and took said note with this understanding and agreement. Defendant further avers that, owing to mistake and inadvertence of the plaintiff and Easche, Byan’s name was not erased from the back of said note as was agreed and understood between them (plaintiff and Easche). Plaintiff filed a motion to-strike out the answer as sham, and for judgment on the pleadings, which was overruled. Afterwards he moved to-set aside the order denying this motion, and for judgment on the pleadings, and upon this motion the court entered the following judgment: “It is therefore ordered and [316]*316adjudged that the order of this court heretofore entered ■on the 17th day of February, 1894, overruling the plaintiff’s motion for judgment on the pleadings, be set aside and vacated; that the answer of the defendant be stricken from the files as sham and frivolous. .And it is further ordered ■and adjudged that the plaintiff do recover of the defendant Henry M. Ryan the sum of,” etc.

The assignments of error relate to the action of the ■court in striking from the files defendant’s answer, and present for determination the question of its sufficiency as a defense. Respondent insists that, conceding the truth of the averments therein contained, no facts constituting •a defense were presented, and no proof would be admissible under it, for the reason that it would tend to vary the terms of the written instrument upon which suit was brought. Appellant’s contention is that the rule forbidding parol evidence to contradict written instrument has no application to this case.

The answer is very ambiguous and uncertain, and is ■clearly demurrable. There is some doubt as to the meaning of various allegations. But a demurrer is very different from a motion to strike a pleading from the files, ■although the practice is too often indulged in to substitute the latter for the former. An answer which may be •subject to demurrer may be invulnerable when assailed by .a motion to strike out. Upon a motion of this character the court is to be guided by the statute, which declares that, “in the construction of a pleading for the purpose of determining its effect, its allegations must be liberally construed, with a view to substantial justice between the parties.” 2 Comp. Laws, § 3228> Keeping in view this just statutory provision, let us ascertain what the answer means. In doing this it should be construed as a whole. Isolated sentences may convey an erroneous idea, and .superfluous- averments form no part of the pleading, and, [317]*317upon a motion like that submitted in this case, may be-disregarded, though they seem to be at variance with the material and substantial allegations therein. The meaning and intention of the pleader are the paramount considerations in determining the sufficiency of a pleading. Even if the meaning be obscure, and the language expressing it-dark and uncertain, the court ought not to strike an answer from the files, if, by fair interpretation, the meaning can be discovered, and the facts alleged present a. defense. While there are superfluous allegations in defendant’s answer, and others are obscure, we think that-applying a just and liberal interpretation, the meaning of the defendant is obvious. It was to defend upon the ground that defendant Easche was Eyan’s agent, and as such wras instructed by his principal (Eyan) to erase or destroy the latter’s indorsement of the note prior to the sale and the further ground that the plaintiff knew of' this agency, and the instructions given to the agent, and purchased the note without the indorsement of the defendant. This, we think, is fairly deducible from the answer.

Eespondent contends that it contains no averments of agency, and that the only construction of which it is susceptible is that Eyan was not to be responsible as an indorser, but that the note was sold and transferred by Easche with the-indorsement thereon, and with the intention that it should remain, but with the understanding that the plaintiff took it without recourse upon Eyan. And one portion of the-answer warrants this construction. But a consideration of the preceding allegations, and the one which follows, separated only by a semicolon, reveals the true meaning of the pleader. It is true that the answer contains no direct allegation of Easche’s agency, but it avers that instructions were given him. Agency may be well pleaded without employing the word “agent.” But it is doubtful whether the question of agency is involved in this case. [318]*318If Kasche were acting entirely for himself in vending the note, be had a right to erase Ryan’s name prior to the sale; and if he were acting for appellant, and was instructed to destroy the indorsement before disposing of the note, it was his duty to do so. Placing the interpretation upon the answer which we think, in view of the motion, it was •entitled to, the question is, did it present any defense? With the general rule that indorsements in blank written •on promissory notes constitute well-defined contracts, and parol evidence cannot be admitted to contradict, vary, or explain them, we fully concur. Respondent relies on the •case of Martin v. Cole, 104 U. S. 30, in support of his position that no defense was stated by the answer. A broad distinction exists between that case and the one now under consideration. Martin sold and transferred, by in-dorsement in blank, the promissory note of one Webb to ■Cole, who sued Martin on his indorsement. Martin alleged in his answer that at the time he indorsed the note to •Cole there was an agreement that Martin should not be held liable on the indorsement, but that his name was written as an indorser solely to enable Cole to sue the maker in his own name, and that without such agreement he would not have signed his name on the back. Evidence in support of these averments was rejected. There can be no doubt of the correctness of this ruling. ■ Martin intended to indorse the note, and transferred it intending that his name should be on the note. Under such circumstances the ( law closes his mouth, and forbids testimony of an oral contemporaneous agreement dehors the indorsement.

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Bluebook (online)
32 L.R.A. 266, 40 P. 202, 11 Utah 310, 40 P.R. 202, 1895 Utah LEXIS 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregg-v-groesbeck-utah-1895.