Halliday v. Stambaugh

204 N.W. 889, 52 N.D. 925, 1925 N.D. LEXIS 160
CourtNorth Dakota Supreme Court
DecidedJune 29, 1925
StatusPublished

This text of 204 N.W. 889 (Halliday v. Stambaugh) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Halliday v. Stambaugh, 204 N.W. 889, 52 N.D. 925, 1925 N.D. LEXIS 160 (N.D. 1925).

Opinion

JOHNSON, J.

This is a suit to recover an alleged balance due upon a promissory note in the sum of $4552.10, executed by the defendant and three other makers on September 16th, 1916. The note was given in payment of the capital stock of a bank located at Expansion this *926 state, which afterwards was reorganized into the First State Bant of EGazen. Plaintiff claims a balance of $1500. The defendant Stam-baugh answered, admitting the execution of the note and alleging that the obligation of the note had been, as to him, discharged in February 1920.

The ease was tried to a jury and a verdict returned for the defendant upon which a judgment was in due time entered. The plaintiff moved for a new trial and from an order denying such motion and from the judgment entered, this appeal is taken.

There is evidence in the record sufficient to support a finding by the jury that the following are the facts and circumstances of the transaction out of which this litigation arose.

On September 16th, 1916, the plaintiff and one Chaffee were the owners of the major portion of the capital stock of the State Bank of Expansion and on that date an agreement was made whereby Chaffee, acting in his own behalf, and also in behalf of the plaintiff who was his partner in the transaction, agreed to transfer to the defendant and three others, seventy-five shares of stock in the First State Bank of Expansion for the stated consideration of $130.06 per share. A cash payment was made by the defendants and a note for the balance of the purchase price executed in the sum of $4552.10 payable November 1st, 1917. This is the note sired on. On December 21st, 1917, a new note was executed in the sum of $3600. On December 1st, 1919, another note was executed by the purchasers of the stock in the sum of $3000. About that date a payment was made on the original indebtedness. The name of the defendant is signed to this note by N. N. ITarmsen as agent. This note is payable December 1st, 1919. At the time this instrument was executed the defendant was in the army, probably in France. Thereafter and in January and February, 1920, the note for $3000.00 not having been paid negotiations were had between Chaffee and ITarmsen, which resulted in a payment of approximately $1700.00 on the $3000.00 note and the execution of two notes, one for $1000.00 and one for $500.00, payable December 1st, 1920, and evidencing the balance remaining unpaid. The two notes last n’amed were not signed by Stambaugh personally or otherwise. The $3000.00 note was surrendered to the makers and marked ‘paid.’ The original note was never returned and apparently ivas at all times re *927 tained by Chaffee or Halliday. Defendant says that he supposed that the original note had been paid and Harmsen says that he never thought of that note. Chaffee and Halliday were brothers-in-law 'and had been associated in business for a long period of years. Halliday testifies that Chaffee looked after his business in Mercer county. The undisputed testimony is that plaintiff left these matters entirely to Chaffee. Halliday was a resident of Montana. The plaintiff says that Chaffee was his agent and that he “left it all to him.” Chaffee testifies that he and Halliday were partners in this transaction and that Chaffee represented Halliday “generally in transaction there in Mercer county.” Chaffee further says that after Halliday left North Dakota “I looked after his interests in Mercer comity.” Chaffee testified that Halliday left the matters of a settlement to him, and, on direct examination says that he acted “as Halliday’s agent in collecting this money in 1918.” Plaintiff testifies that he did not know “personally about the transaction back there in North Dakota; I left it all to him (Chaffee) he was my agent.”

It also appears from the testimony of defendant and of the witness, Harmsen, that defendant remitted to Harmsen about $1500.00, with instructions to pay it on the $3000.00 note on condition that the defendant be released from further obligation thereunder and that his proportion of the stock purchased be delivered to him. The stock was delivered thereafter. Harmsen testifies that he informed Chaffee of the condition on which defendant paid the amount and that no objection was made, and that the money was paid to Chaffee accordingly and the stock delivered to defendant Stambaugh. Chaffee denies this in its entirety. He testifies that no condition was attached and that there existed no understanding that Stambaugh would be released. Both Harmsen and Stambaugh testify that when this payment was made and the stock was delivered, neither had any idea that the original note was still held by Chaffee or Halliday or that any obligation was asserted or existed on account of such note. There is, therefore, sufficient evidence to support a finding by the jury that the money was paid to Chaffee upon the condition that Stambaugh be released from further obligation on account of the stock purchased, and that payment was accepted by Chaffee upon that condition. The sufficiency of the evidence is challenged, but on this point as has been indicated, the ver- *928 diet of the jury has substantial support in the evidence. If the plaintiff is bound by the conduct of Chaffee in accepting this payment from Harmsen upon the condition imposed by Stambaugh, Stambaugh was released and the verdict of the jury to that effect has substantial support in the evidence. The jury would have been justified in finding, on the evidence before them, especially in view of the emphasized portion of Chaffee’s letter of December 27, 1920, infra, that Chaffee’s bank was to make a loan to defendant’s associates in order to settle the balance of the indebtedness after Stambaugh’s conditional payment had been accepted.

The appellant groups his specification of errors under three heads, hirst, he challenges the sufficiency of the evidence to support the verdict. Second, he contends the court erred in rulings upon evidence and in admitting the following exhibits: The notes for $1000.00 and «$500.00, to which reference has been made. The first renewal note of $3000.00. A letter written December 28th, 1918 by Harmsen to Chaf-fee as follows: “Hand you herewith renewal note to W. E. Halliday, signed by the original four. May the old note be returned to us.’ ” A, letter from Chaffee to Harmsen, dated December 27, 1920, asking Harmsen for a payment of the note for $3000.00, dated December 5, 1918. In this letter Chaffee writes: “Bill (Halliday) is very much in earnest and I know, needs the money. He has been very nice in extending this from year to year and there is nothing to do but send him the money. While I am very short in reserve, I am so anxious to get this money for Bill when he needs it that I will loan you fellows my limit which is $1500.00 if necessary.” (Emphasis is ours.) Third: that the court erred in failing to give complete instructions^ particularly upon the law of agency.

Wc have disposed of the first proposition and held that there is sufficient evidence to support a verdict of the jury to the effect that the payment last made by defendant Stambaugh was conditionally made and that if the conduct of Chaffee was binding on Halliday, the defendant was discharged from further obligation on account of the purchase of the bank stock. The specifications of error are so general that, under the statement of the rule in Crisp v. State Bank, 32 N. D. 263, 280, 155 N. W.

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Related

Crisp v. State Bank
155 N.W. 78 (North Dakota Supreme Court, 1915)

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Bluebook (online)
204 N.W. 889, 52 N.D. 925, 1925 N.D. LEXIS 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halliday-v-stambaugh-nd-1925.