Hanson v. McCann

20 Colo. App. 43
CourtColorado Court of Appeals
DecidedApril 15, 1904
DocketNo. 2409
StatusPublished

This text of 20 Colo. App. 43 (Hanson v. McCann) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hanson v. McCann, 20 Colo. App. 43 (Colo. Ct. App. 1904).

Opinion

Per Curiaon.

On Jannary 17, 1897, a judgment was recovered by Conrad Hanson against P. McCann for $1,280.80. On the 31st day of December, 1898, Hanson and McCann entered into the following contract :

“Whereas, Conrad Hanson has obtained a judgment in the district court of Arapahoe county, Colo[45]*45rado, against P. McCann, for about the sum of twelve hundred dollars ($1200); and, whereas, said McCann is desirous of compromising and paying said judgment; Therefore, it is agreed between said parties that said McCann should pay the sum of four hundred and fifty dollars ($450), as follows: One hundred dollars ($100) cash, and at least the sum of twenty-five dollars ($25) on or before the 10th day of each month, beginning with the 10th day of February, A. H. 1899, until the full sum of four hundred and fifty dollars ($450) has been paid, when said judgment shall be canceled; otherwise this agreement to be void, and all amounts paid to be credited on thé full amount of said judgment.
“Witness the hands of the parties, this 31st day of December, A. D. 1898.
“(Signed) Conrad Hanson,
“By Geo. C. Norris, his Atty.
“P. McCann.”

Upon the execution of this contract, McCann paid Hanson $100, and afterwards made the following further payments: February 11,1899, $50; April 1, 1899, $50; June 1, 1899, $50; August 5, 1899, $50; October 16, 1899, $50; December 15, 1899, $50. The contract was executed for Hanson by George C. Norris, his attorney, who, also, as attorney, drew and signed the receipts for the payments. Norris possessed the requisite authority to receive the money, sign the papers, and transact the business generally.

On January 27, 1900, McCann called on Mr. Norris, at his office in Denver, for the purpose of paying the remaining $50 due on the contract, and asked for a release of the judgment. Norris, as he testified, did not have the release in his office at that time, but said he would communicate with Mr. Hanson, who was in Leadville. McCann did not pay the'money then, but left for his home in Central City. He [46]*46returned to Denver on Saturday, February 10, 1900, and on Monday, the 12th, again visited Mr. Norris. The latter had made no effort to obtain the release, and McCann, through his attorney, C. W. Franklin, tendered him $50 in gold, which he refused. He gave no reason for his refusal. Norris gave a receipt for each payment, as it was made. The payments, except the last two, were received for application on the agreement, or on the judgment, as per the agreement. The last two were, according to the receipts, taken for application on “judgment in case of Hanson v. McCann."

On the 17th day of February, 1900, Hanson sued out process in garnishment on the judgment, and caused C. W. Franklin and the Kansas Burroughs Consolidated Mining Company, to be summoned as garnishees. McCann was in the employ of this company, at a salary of $200 per month. Franklin answered that he had $50 in his hands belonging to McCann, which was the same $50 which had been given him to tender to Norris. The company answered that its books showed $495 due McCann.

McCann then filed his motion in the causé for a dismissal of the garnishment, on the grounds that, by the terms of the contract between himself and Hanson, which he embodied in his motion, he was entitled, when the payments which it specified- were made, to a satisfaction of the judgment; and that such payments had been made, except $50, which he had tendered, and which Hanson had refused to receive. The tender was renewed in the motion. The garnishees also severallyinterposed motions for a dismissal of the garnishment proceedings, on the grounds specified in McCann’s motion. Hanson traversed the statements in the motions of the garnishees, and averred that ■ the payments were not made at the times specified in the agreement, and that, therefore, [47]*47he, Hanson, had elected to apply them upon the judgment; and, further, that the agreement was without consideration.

At the hearing upon the motions and traverse, it was disclosed by the evidence that when the agreement was made, McCann was heavily involved beyond his ability to pay, and had contemplated taking the benefit of the bankrupt law. Mr. Hanson was informed by Mr. Franklin that unless a settlement of the claims against him could be made, McCann would be forced to go into bankruptcy. McCann himself laid his financial condition fully before Hanson’s attorney, Mr. Norris. .In a conversation on the subject between Mr. Franklin and Mr. Hanson, the latter said he would cut his claim down very materially and make a settlement, rather than have McCann go into bankruptcy. . Mr. Hanson, in his testimony, said that in making the compromise, he was influenced to some extent by the intimation that McCann would go into bankruptcy. There was no specific agreement between Hanson and McCann that if the latter would not go into bankruptcy the former would receive the amount named in the contract in satisfaction of his judgment; but it seems quite clear to us that McCann’s contemplated resort to the bankrupt law furnishes the reason, and the only reason, for the compromise that was agreed upon.

The points made for the appellant are, first, that there was no consideration for the contract; second, that, as no consideration had been pleaded, evidence concerning it was inadmissible; and, third, that the contract was no defense to any proceeding on the judgment, unless it had been fully performed according to its terms.

I. An agreement not to take the benefit of the bankrupt law and thereby endanger the whole debt; is a sufficient consideration to support an agreement [48]*48of compromise. — Dawson v. Beall, 68 Ga. 328. In the case at bar there was no formal agreement; bnt the appellant was advised that a resort to bankruptcy was contemplated by the appellee; and, to insure himself of a sum certain rather than run the risk of being compelled to take a smaller sum, or of losing his whole claim, he entered into the. agreement of compromise. The contract- is, therefore, supported by good and valid consideration. — Hinckley v. Arey, 27 Me. 362.

II. If this had been an independent suit brought upon the contract for the cancellation of the judgment, as the contract does not import a consideration, then, to make the complaint good, a consideration must have been alleged. And an objection that a complaint does not state facts sufficient to constitute a cause of action, is not waived by a failure to demur. It may be taken at any time. We have no such provision relating to any other pleading. But this is not an independent action, and there was no complaint. The paper to which the rrile is sought to be applied was not a pleading at all. It was merely a motion interposed in the original cause to procure a dismissal of the garnishment. The same particularity of statement is not required in a motion as in a complaint. Its grounds may be set forth in genera] terms. The grounds of this motion were the contract, and its performance in so far as the appellant would permit its performance. The contract itself expressed no consideration, but proof of consideration might be made nevertheless. — Parsons on Contracts, * 430. ■ .

The reasoning of counsel not being applicable to motions, proof of the consideration was admissible in support of the purely general grounds on which the motion was based.

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Related

Hinckley v. Arey
27 Me. 362 (Supreme Judicial Court of Maine, 1847)
Dawson v. Beall
68 Ga. 328 (Supreme Court of Georgia, 1882)
Whitsett v. Clayton
5 Colo. 476 (Supreme Court of Colorado, 1880)

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Bluebook (online)
20 Colo. App. 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanson-v-mccann-coloctapp-1904.