Gregory v. Farmers' Union Exchange

1924 OK 290, 224 P. 291, 98 Okla. 77, 1924 Okla. LEXIS 1137
CourtSupreme Court of Oklahoma
DecidedMarch 11, 1924
Docket13662
StatusPublished

This text of 1924 OK 290 (Gregory v. Farmers' Union Exchange) 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
Gregory v. Farmers' Union Exchange, 1924 OK 290, 224 P. 291, 98 Okla. 77, 1924 Okla. LEXIS 1137 (Okla. 1924).

Opinion

Opinion by

FOSTER, C.

In the spring of 1920, the Farmers’ Union Exchange, a corporation, opened up a mercantile store in the town of Stecker, Okia. On April 16, 1920, Ambers H. Gregory was placed in charge of said store as manager, and continued to act in that capacity until October 27, 1920. On June 14. 1920, said Am-bers H. Gregory executed a bond for the sum of $2,000 to his employer with the American Surety Company of New York, as surety, conditioned that he would not as such manager commit any acts of larceny or indebtedness, directly or through connivance with others, while so employed as such manager.

An invoice and audit of the books of the Farmers’ Union Exchange was made on October 27, 1920, whereupon the Farmers’ Union Exchange, defendant in error, plaintiff below, brought suit against Ambers H. Gregory and the American Surety Company of New York, plaintiffs in error, defendants below, on the bond for the sum of $2,000.

The parties will be hereinafter referred to as they appeared in the court below.

The petition of plaintiff alleged that the defendant Gregory, while acting as manager, did, between April 21 and October 27, 1920, embezzle money and personal property of the plaintiff to the amount of $2,131.42, and wrongfully appropriated the same to his own use. To the petition, the defendants filed a motion to make more definite and certain, which was overruled by the court arid exceptions allowed. After the court had overruled their demurrer to the petition of the plaintiff, the defendants excepted and filed an answer in the nature of a general denial.

The cause proceeded to trial before a court and a jury on September 27, 1921, and resulted in a verdict for the plaintiff in the sum of $1,500. Motion for new trial was filed and overruled, exceptions taken, and the defendants bring the cause regularly on appeal to this court on petition in error and case-made.

It is admitted in the briefs of both parties that when the defendant Gregory was checked out on 'October 27, 1920, he returned to the company about $126 less than the amount of cash paid in. It was the contention of the plaintiff that during the time the defendant Gregory was in charge of its store, its business prospered, and that the defendant Gregory embezzled all of the profits in the sum of about $1,500, and $126 of the capital..

The defendants contended on the other hand that the business was a losing proposition from its inception, and that the reason Gregory was not able to turn over to his employer any profits was that the business honestly administered had not been capable of earning any profits on account of general adverse business conditions.

As we viewed the evidence the trial largely revolved around the controverted question of whether or not there had been any profits earned by the company, rather than upon specific acts of embezzlement by Gregory of specific articles of property, or of specific funds.

It is sufficient to say here that the jury believed the theory of the plaintiff that there had been $1,500 in profits earned by the business, all of which had been embezzled by Gregory, and returned its verdict against the defendants accordingly.

Several errors are assigned and discussed, but it will only be necessary in cur view of the case to examine the one growing out. of the ruling of the court on a motion for a new trial on the ground of, newly discovered evidence.

The testimony of John Wernli and George James, officers of the plaintiff company, was introduced by the plaintiff in rebuttal, and was to the effect that after the defendant Gregory had been discharged on October 27, 1920, the company had done a prosperous *79 'business and continued to prosper up to the time of the trial.

A few days after the trial a stockholders’ meeting of the plaintiff company occurred, at which the said John Wernli, as secretary of the plaintiff company, reported that he was closing out the stock at fifty cents on the dollar, and that the company had lost something like $3,000 since the defendant Gregory was discharged as manager of the company; that the company lacked $50 of realizing enough money from the sale of its stock of merchandise to pay its indebtedness, and that its total assets after paying its indebtedness amounted to about $2,440, o? about $3,000 less than the total capital' put into the company at the beginning ; that at this meeting some of the stockholders, particularly George Parrish and Fee-gee Parrish, learned for the first time that the directors of the company had taken an inventory on the 14th day of February, 1921, which disclosed that the company had been conducting a losing business, and that this state of facts had been withheld by the directors from the stockholders prior to the trial of the cause in September, 1921.

The defendants thereupon filed a motion for a new trial upon the ground of this newly discovered evidence in which it was alleged that the board of directors were hostile to the defendants and had been unwilling to disclose any information favorable to the defendants, and that such newly discovered evidence was such that it could not have been discovered by the defendants with due diligence before the trial, was material to the issues in the ease, not cumulative, corroborative, or impeaching in its nature, and was such as to probably change the result if a new trial should be granted.

A hearing was had at which the affidavits of George Parrish and Feegee Parrish were read, the testimony of R. .L. Lawrence and Theodore Pruett, attorneys for the defendants, and John Wernli introduced from which it was made to appear substantially as stated above, and in addition it was made to appear upon the testimony of the said attorneys that no testimony was introduced by them at the trial tending to show the condition of the plaintiff’s business after Gregory was discharged, and that the only testimony introduced was the testimony of Wernli and ,James, introduced by the defendants, to the effect that the business continued prosperous ufter that time.

The motion for a new trial was overruled.

It seems clear to us that this testimony was material. The only evidence introduced at the trial on the subject of the condition of plaintiff’s business after Gregory was discharged was the ■ testimohy of witnesses for the plaintiff in rebuttal to the effect that the business then was prosperous. The nature of the ease and the character of the evidence was such that the.question of profits earned by .the company during the six months Gregory was manager was a vital point in the case.

In view of the confusion likely to arise in the minds of the jury in its attempt to base a verdict upon conflicting methods of computation as to profit or loss, it is not difficult to understand how the jury might be lead to give great weight to this testimony in arriving at its verdict. We are not unmindful of the rule established in this jurisdiction that before a new trial should be granted on the ground of newly discovered evidence, it should appear that the evidence, if produced, would probably produce a different result, and in passing upon such a motion a certain amount of discretion is vested in the trial court. Eisminger v. Beman. 32 Okla. 818. 124 Pac. 289.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Vickers v. Philip Carey Co.
1915 OK 557 (Supreme Court of Oklahoma, 1915)
Foster v. Hoff
1913 OK 216 (Supreme Court of Oklahoma, 1913)
Weber v. Weber
1919 OK 8 (Supreme Court of Oklahoma, 1919)
Roeser v. Pease
1913 OK 233 (Supreme Court of Oklahoma, 1913)
Eisminger v. Beman
1912 OK 346 (Supreme Court of Oklahoma, 1912)

Cite This Page — Counsel Stack

Bluebook (online)
1924 OK 290, 224 P. 291, 98 Okla. 77, 1924 Okla. LEXIS 1137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregory-v-farmers-union-exchange-okla-1924.