Hartley State Bank v. McCorkell

60 N.W. 197, 91 Iowa 660
CourtSupreme Court of Iowa
DecidedOctober 6, 1894
StatusPublished
Cited by14 cases

This text of 60 N.W. 197 (Hartley State Bank v. McCorkell) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hartley State Bank v. McCorkell, 60 N.W. 197, 91 Iowa 660 (iowa 1894).

Opinion

G-iven, J.

I. In the fall of 1887, L. M. Hartley, ■through C. E. Hartley, sold the horse Chere to defendant, and, in payment, took his three notes for six hundred dollars each, dated October 21, 1887, payable June 1, 1889, 1890, and 1891, respectively, secured by a mortgage on said horse. On August 6, 1888, defendant, at the instance of C. E. Hartley, gave to L. M. Hartley a mortgage on certain real estate to secure said three notes and one other note for two hundred and’seventy-four dollars. At the same time, C. E. Hartley gave 'defendant a writing as follows, identified as exhibit 1:

“August 6, 1888.
“Banle of Alerón, Plymouth Co., Iowa.
“Received of R. R. McCorkell a new mortgage, dated August 6, 1888, which is to take the place of one mortgage dated October 21, 1887, which will be released as soon as last mortgage can be recorded. By order of R. R. McCorkell.
“(Signed) C. E. Hartley,
“L. M. Hartley.”

On October 24, 1888, a writing as follows was executed, identified as exhibit B:

“Akron, Iowa, Oct. 24, 1888.
“It is hereby agreed between O. E. Hartley and L. M. Hartley, parties of the first part, and R. R. [663]*663McCorkell, party of the second part, that the said party of the first part is now holding a mortgage of the 'southeast quarter of section 13 — 93—48, Plymouth county, Iowa, also a chattel mortgage on one black stallion, Chere, number 2,209, and his books and accounts, to secure four promissory notes given by the said B. B. McCorkell. Now the said L. M. Hartley and C. E. Hartley hereby agree to cancel the chattel mortgage at the option of B. B. McCorkell, after six months, provided that the said B. B. McCorkell shall make them safe on other1 personal property. The notes amount to two thousand, one hundred and seventy-four dollars. It is further agreed that the horse may be removed from the county at any time the said B. B. McCorkell may wish.
“C. E. Habtley,
“L. M. Habtley,
“Per C. E. H. B. B. McCobkell.”

The four notes and the two mortgages were assigned to the plaintiff, to secure a loan of eighteen hundred dollars, made to L. M. Hartley; and, while so holding them, 'this action was commenced, and also a suit in equity to foreclose the- real estate mortgage. Judgment was entered foreclosing the real estate mortgage, the land was sold, and the proceeds applied, leaving a balance of two hundred and eight dollars and ten cents unpaid. The foregoing facts appear without question.

It is not questioned but that the plaintiff was entitled to possession of the horse, by virtue of the chattel mortgage, at the commencement of this action, if said mortgage was then in force. Defendant’s contention is that the real estate mortgage was given in lieu of the chattel mortgage, and that the writing, exhibit 1, was given as a cancellation of the chattel mortgage. Plaintiff contends that said writing exhibit 1 is not a cancellation, but an agreement to cancel, [664]*664and that, by the writing exhibit B, said agreement was set aside, and the chattel mortgage reinstated. Plaintiff also claims that it is not shown that O. E. Hartley had authority from L. M. Hartley or the plaintiff to execute said writing exhibit 1, or that said act was ever ratified by either of them. The defense of payment was withdrawn from the jury, as will be seen hereafter, thereby leaving only the questions whether the chattel mortgage had been canceled, the value of the horse, and the amount of damages.

1 II. Evidence was introduced tending to show payments made on the mortgage debt prior to the rendering of judgment in the foreclosure case. Plaintiff contends that the amount of the indebtedness was adjudicated in that action, and that the court erred in overruling its motion to strike said evidence. The record in the former case was in evidence, and the court, having instructed to the effect that, if the debt was fully paid before the commencement of this action plaintiff could not recover, further instructed as follows: “If you find from the evidence in this case that the question involving the amount due upon the notes secured by said chattel mortgage has heretofore been adjudicated by a court of competent jurisdiction, and the amount of said indebtedness established by judgment of said court, then that adjudication is final, and all evidence bearing upon the question aside from the record of the adjudication should not be given weight by the jury.” The effect of this instruction was, under the undisputed record in the former case, to withdraw the defense of payment and the evidence in support of it, and to leave the judgment in that case conclusive as to the fact and the amount of the indebtedness. Whatever prejudicial error there may have been in admitting evidence of payments and in overruling plaintiff’s motion was cured by the instruction.

[665]*6652 III. Plaintiff objected to the introduction of exhibit 1 in evidence, on the ground that there was no proof that C. E. Hartley had authority .to execute it. Objection was overruled, and the jury were instructed to the effect that if they found that O. E. Hartley was authorized by L. M. Hartley to accept the real estate mortgage, and, in consideration therefor, agreed to release the chattel mortgage, and did so, or if they found that L. M. Hartley or the plaintiff ratified said act, the plaintiff could not recover, unless the chattel mortgage was revived by exhibit B. There was no error in overruling the objection or in the instruction.. There was evidence tending to show the alleged authority in C. E. Hartley, and it appears beyond question that both L. M. Hartley and the plaintiff ratified the act of C. E. Hartley'in taking the real estate mortgage, by accepting it and proceeding upon it: In doing so, they became bound by the agreement under which C. E. Hartley procured it.

3 IY. Plaintiff complains that, after both parties had rested, the defendant was permitted to testify, over objections, in substance as follows: That C. E. Hartley represented to him that a party who held a disputed claim against defendant intended to attach the horse Chere and that defendant executed exhibitB, upon C. E. Hartley’s suggestion, to prevent the attachment of the horse, and upon C. E. Hartley’s promise that he would surrender the writing to defendant whenever he wanted it. It was discretionary with the court whether to admit further evidence at the time this was admitted, and there was no abuse of that discretion. The writing exhibit B, in so far as it assumes to recite the facts, is manifestly incorrect. It is not true that C. E. and L. M. Hartley were then holding mortgages as stated, as the mortgages were to L. M. Hartley alone. If plaintiff then held the mortgages as alleged, it is not true that L. M. Hartley was then, the [666]*666holder thereof. The writing was executed without consideration, and all that is claimed for it is, that the defendant therein admits that the chattel mortgage was in force. We think the defendant had a right to prove the reasons for and the circumstances under which the admission was made.

4 5 Y.

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Bluebook (online)
60 N.W. 197, 91 Iowa 660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartley-state-bank-v-mccorkell-iowa-1894.