Hall v. McNally

65 P. 724, 23 Utah 606, 1901 Utah LEXIS 56
CourtUtah Supreme Court
DecidedJune 26, 1901
StatusPublished
Cited by2 cases

This text of 65 P. 724 (Hall v. McNally) 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
Hall v. McNally, 65 P. 724, 23 Utah 606, 1901 Utah LEXIS 56 (Utah 1901).

Opinions

MINER, O. J.

It substantially appears from the record that on the twentyrfirst day of February, 1900, plaintiff, Hall, bad $1,000 in bis bands, wbicb respondent Farnsworth claimed. Appellants, McNally and Harrington, denied Farns-worth’s right, thereto,' and themselves claimed the money. Plaintiff, Hall, not wishing to take the risk of paying the money to either party, filed this bill of interpleader against all the defendants. It further appears, in substance, that on May 4, 1899, McNally, Harrington and wife, and McDonald and wife, entered into an option contract in writing to sell the Antelope group of mines to Farnsworth. Each of the three contractors owned an undivided one-third interest in the mines. The consideration expressed was $30,000, and was to be paid in three payments. The last payment of $15,000 was to be made within six months. The option contract was placed in the hands of Hall, the plaintiff, and also a deed placed in escrow, to be delivered on payment of the money. A question arose between the parties as to the payment of commission. It is claimed by Farnsworth that an oral agreement was made between himself and McNally and Harrington whereby they agreed that Hall should deduct out of their share of the $15,000 the sum of $2,000 commission for the sale of the [608]*608property, rather than, have tbe sale go under; tbat McDonald was not a party to sucb agreement, and refused to pay bis proportion of tbe commission. One thousand dollars of tbis commission was to be paid to John Free, and $1,000 to Farns-worth. Free afterwards waived bis claim. McNally and Harrington notified Hall not to deliver tbe deed until tbe full amount of $15,000 was paid. When due, Farnsworth tendered Hall $14,000, claiming no more was due. Hall refused to deliver tbe deed unless tbe full sum was paid. Thereupon Farnsworth paid tbe whole amount to Hall. Tbe appellants dispute tbe right as to tbe payment of tbe commission, and tbe testimony on tbat subject is in conflict. On full payment of the $15,000, Hall delivered tbe deed to Farnsworth, who recorded it, and thereupon paid McNally and Harrington tbe amount due them, less tbe $1,000, which was retained by him until a right to tbe same bad been determined. Harrington and McNally thereupon brought suit No. 2856 against Farns-worth to annul tbe deed, claiming tbat Hall bad no right to deliver the same until they were paid the full balance of tbe $15,000. Farnsworth answered, claiming be bad paid tbe full sum due on tbe option contract to Hall. Tbe court found the deed was properly delivered, and dismissed tbe complaint. McNally and Harrington thereupon demanded payment of tbe balance of $1,000 from Hall, and tbis suit was instituted by Hall to determine who was entitled to tbe money. After bearing tbe proof, tbe court found tbat Farnsworth was entitled to tbe money, and ordered its payment accordingly. From tbis judgment McNally and Harrington appeal.

1. Appellants claim tbat tbe court erred in receiving parol testimony tending to show tbe agreement between Farns-worth on tbe one part and McNally and Harrington on the other to allow the former $1,000 on account of commission, on. tbe ground tbat the original contract was in writing, free from ambiguity, and parol evidence was inadmissible to vary tbe [609]*609terms thereof. The general doctrine, as frequently announced by this court, doubtless is that, in the absence of fraud, mistake, or ambiguity, parol evidence is not admissible to vary or explain the terms of a written instrument. Moyle v. Society, 16 Utah 69, 50 Pac. 806; Bank v. Foote, 12 Utah 156, 42 Pac. 205; Haskins v. Dern, 19 Utah 89, 56 Pac. 953. The respondent admits this rule to be correct, but says be does" not seek to vary its terms, or to claim under the written agreement; that be claims under an independent contract, whereby McNally and Harrington agreed to allow him $1,000' out of their share of the last payment of $15,000, and that, therefore, the principle above announced is inapplicable to the facts herein; that the contract sued upon is not the original contract for the sale of the property, but an independent contract between McNally and Harrington on the one part and Farnsworth on the other, and that they are different and other parties than those who signed the original contract, one of the parties to the original contract not being a party to this agreement. It is also claimed that the consideration named is not part of the contract, and that such consideration may be explained or varied. We are of the opinion that the evidence was properly admitted. The testimony introduced did not go to the promise itself, but to the consideration of the promise; and it did not relate to the promise made by all the parties to the written contract, but to an independent promise and consideration, agreed upon by only two of the several parties to the option contract with the respondent, as to the manner of paying the consideration. Parol evidence is admissible to show what the parties agreed might be done with the consideration, and in what manner the consideration named in a deed is to be paid, but not to change the contract itself. Becker v. Knudson, 86 Wis. 14, 56 N. W. 192. If Farnsworth’s testimony tends to change the contract itself, it should be re-[610]*610jectecl. 2 Jones, Ev., see. 475. Formerly it was beld, although there was much conflict in the opinions, that the clause stating the consideration in a deed or other instrument under seal must be held conclusive on the parties like other parts of the instrument, and was not open to contradiction or explanation ; but inore modem decisions settle the rule that, although the consideration expressed in a deed is prima facie the sum to be paid, it may still be shown by the parties that the real consideration is different from that expressed in the written instrument. As said in Goodspeed v. Fuller, 46 Me. 147, 71 Am. Dec. 572: “The only effect of the consideration clause in a deed is to estop the grantor from alleging that it was executed without .consideration, and to prevent a resulting trust in the grantor. For every other purpose it may be varied or explained by parol proof.” Wilkinson v. Scott, 17 Mass. 249; Clapp v. Tirrell, 20 Pick. 247; Thayer v. Viles, 23 Vt. 494; White v. Miller, 22 Vt. 380; Bowen v. Bell, 20 Johns. 338, 11 Am. Dec. 286; 2 Jones, Ev., sec. 476; Velten v. Carmack (Or.), 31 Pac. 658, 20 L. R. A. 101; Cardinal v. Hadley, 158 Mass. 352, 33 N. E. 575. In Becker v. Knudson, 86 Wis. 14, 56 N. W. 192, it was held that parol evidence is admissible to show in wh'at manner the consideration named in a deed is to be paid. Schillinger v. McCann, 6 Me. 364; 2 Jones, Ev., sec. 476; Velten v. Carmack (Or.), 31 Pac. 658, 20 L. R. A. 101, and cases cited. In Burbank v. Gould, 15 Me. 118, it was held that the acknowledgment of payment of the consideration money in a deed of land does not preclude the grantor from showing by parol testimony that a part of the money was left in the hands of the grantee, to be paid by him to a third person, for the benefit of the grantor.

2. The appellants also contend that by reason of the proceedings and decree in Harrington and McNally against Farns-worth (No. 2856), wherein Farnsworth answered, and the court found that he had paid Hall the full amount of the [611]*611money due on tbe contract, tbe latter is estopped and precluded from claiming said $1,000 in tbis action, and tbe rights of Harrington and McNally to said money are now res adjudicata, as well as tbe fact that tbe money was paid to and held by Hall for them. It is no doubt true, as held in Davis v. Wakelee, 156 U. S. 689, 15 Sup. Ct. 555, 39 L. Ed.

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

Related

Lyon v. United States Fidelity & Guaranty Co.
140 P. 86 (Montana Supreme Court, 1914)
Shehy v. Cunningham
81 Ohio St. (N.S.) 289 (Ohio Supreme Court, 1909)

Cite This Page — Counsel Stack

Bluebook (online)
65 P. 724, 23 Utah 606, 1901 Utah LEXIS 56, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-mcnally-utah-1901.