Hespos v. Winkelmeyer

149 S.W. 325, 166 Mo. App. 532, 1912 Mo. App. LEXIS 571
CourtMissouri Court of Appeals
DecidedJuly 19, 1912
StatusPublished

This text of 149 S.W. 325 (Hespos v. Winkelmeyer) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hespos v. Winkelmeyer, 149 S.W. 325, 166 Mo. App. 532, 1912 Mo. App. LEXIS 571 (Mo. Ct. App. 1912).

Opinion

REYNOLDS, P. J.-

— This is a suit by appellant, plaintiff, against respondents for contribution, on the ground of the joint liability of plaintiff and defendants upon a promissory note for $1000, judgment upon which note had been rendered in the circuit court upon a stipulation signed by the holder of the note, the plaintiff in that suit on the one side, and by appellant and respondents herein on the other side. Execution issuing on the judgment, levy was made alone upon the property of the plaintiff to pay the whole of it, which he, or someone in his behalf did, and these defendants failing to pay this plaintiff their proportionate shares, two-thirds, as he claimed, he brought this suit, as one in equity, for contribution. The petition, setting out the execution of the note by the three parties, the rendition of the judgment against them and the payment of it by plaintiff here under the execution . levied against his property, prays that an adjustment of the joint liability on the judgment between plaintiff and the defendants upon the basis of an equal division between the appellant and both the respondents be had, if both are financially responsible, or between [535]*535the appellant and one of the respondents, if only one of them is financially responsible.

The joint answer of the defendants, after denying the allegations of the petition, sets np that the money for which the joint note was given and upon which the judgment was rendered was really borrowed for the appellant alone and used by him for his own purposes.

A general denial by way of reply was filed to this new matter in the answer.

The cause was tried before the court as in equity. The only witness whose testimony .was heard in the case was that of plaintiff himself. After making formal proof of the judgment and of the issue of the execution and satisfaction of it and introducing the note in evidence signed by plaintiff and the two defendants, plaintiff, testifying in chief, gave his version of the circumstances under whch he claimed the note in question, had been executed by him and the defendants. He testified, in effect, that the note was executed in contemplation of the organization of a corporation by him and defendants for the manufacture and sale of washing machines; that a contract to this effect was entered into between them, the exact terms of which are not in evidence, but that the corporation was never organized. He further testified that when the note was executed, defendants were engaged in selling these washing machines, which he was manufacturing for them; that defendants needed funds in this business and the $1000 represented in the note was borrowed solely for the benefit of the two defendants, Winkelmeyer and Meyer, and that he (plaintiff) was merely an accommodation maker on the note, having negotiated for the money with the lender, who required him to sign the note with the other two parties as makers. In testifying plaintiff admitted that he had himself received and paid out all of this $100t) raised on this note but he testified that it was done for and [536]*536solely on behalf of the business of the defendants, who he testified were the sole partners in the concern doing business under the name of Sugar Plum Washing Machine Company, as partners, under that name being engaged in selling these machines, plaintiff merely manufacturing them for defendants at specified prices.

Letters were introduced and read in evidence written by plaintiff, from which it appeared that he, while nominally the bookkeeper of the partnership composed of the two defendants, in point of fact controlled the action of Meyer, who under the articles of partnership between Meyer and. Winkelmeyer was the salesman for the firm, these letters indicating, that plaintiff exercised complete authority over Meyer as to his sales, movements, commissions, compensation, etc., but in no manner asserting any interest in the partnership by plaintiff. These facts developing, counsel for defendants suggested to the court that the proof, as made by plaintiff’s own testimony, developed and showed an entirely different cause of action than that stated in the petition. They claimed that the cause of action stated in the petition was clearly one for contribution, upon the allegation as to the joint liability of the plaintiff and defendants on the note, and the alleged right of plaintiff to have the defendants contribute proportionately to the payment of the judgment on the note, while plaintiff’s own testimony showed that his cause of action, if any, should be for the entire amount of the note, interest, etc., as money borrowed by him and defendants, but entirely for the benefit of defendants and paid out by him for these defendants. As appears by the abstract of the record of the proceedings at the trial, the court adopted this position taken by counsel for defendants. Quoting the language of counsel for plaintiff in his brief filed, “upon the trial the court took the position that the appellant, by his own testimony, indicated that, instead of having been borrowed for their joint [537]*537benefit, the money for which the note was given had really been borrowed for the respondents alone, to be nsed in connection with a partnership existing under the name of ‘Sugar Plum Washing Machine Company,’ and that, in view of appellant’s own testimony, he would be entitled, if he could recover at all, to recover from the respondents jointly the whole of the judgment he had been required to pay. The court then further took the position that this would require a proceeding of a different nature from that instituted by appellant and that he could not recover, in his present action, the whole of the sum expended.’.’ So counsel for appellant states the case. It is further set out in this statement of counsel that the court declined to allow appellant to proceed upon the theory which counsel advanced, that even if entitled to the whole amount expended, plaintiff would at least be entitled to recover the part sued for, if willing to waive the remainder. The abstract shows that the court held that on the facts in evidence plaintiff could not recover any amount under the averments in his petition, and announced that it seemed useless for plaintiff, in view of this, to proceed further, as the court would be compelled to find the issues in favor of defendants. Whereupon plaintiff, by leave of court, took a nonsuit with leave to move to set the same aside. This motion was after-wards interposed, overruled, exception duly saved and the cause brought here by plaintiff on appeal.

Learned counsel for appellant make two propositions : First, that a court of equity has jurisdiction, at the suit of those parties to a joint liability who have discharged to the obligee the whole liability, to bring in those who have not contributed their share and to require them to make contribution and to make an amicable adjustment of the burden among the parties and settle the whole controversy in one suit. Second, that the judgment rendered in the Knabner suit, that is the suit on the note, with the further evidence that [538]*538appellant had alone discharged the same, was sufficient to make out a prima facie case against the respondents.

Taking np this second proposition, it may be conceded to be true. If plaintiff had closed his case there he would have thrown upon defendants the onus of overcoming it.

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Bluebook (online)
149 S.W. 325, 166 Mo. App. 532, 1912 Mo. App. LEXIS 571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hespos-v-winkelmeyer-moctapp-1912.