Hill v. Hart

167 P. 710, 23 N.M. 226
CourtNew Mexico Supreme Court
DecidedAugust 23, 1917
DocketNo. 2025
StatusPublished
Cited by8 cases

This text of 167 P. 710 (Hill v. Hart) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hill v. Hart, 167 P. 710, 23 N.M. 226 (N.M. 1917).

Opinion

OPINION OP THE COURT.

BOBEBTS, J.

This was a suit for the performance of a contract for the purchase of certain real estate described in the complaint, entered into by appellant and one Henry, deceased, and to quiet title to the same real estate, appellants being the heirs at law of Iienry. The facts, in brief, are that some time prior to the execution of the contract which forms the subject of this action Dr. Iienry entered into a contract for the sale of certain real estate in Albuquerque with one Annie Anderson, who was the mother of the appellee, and Mrs. Anderson was placed in possession of the premises under the contract. Mrs. Anderson paid $90 on account of the contract, and then found herself ■unable to go on with it, and the appellee applied to Dr. ITcnry to know! if it could not be assigned over to her, as she would have to make the payments. It appears that a deed which had been executed by Dr. Henry to Mrs. Anderson, but was not delivered to her, was altered by erasing the name of Mrs. Anderson and inserting the name of Catherine Hill, as grantee, and that a promissory note was prepared by Henry and submitted to appellee for her signature. The material portion of the note is here inserted, that portion in uniting being underscored:

$1900. Albuquerque, New Mexico, March 12, 1917.
“-- after' date, for value received waiving grace and protest, I, we, or either of us, jointly and severally promise to pay to the order of J. A. Henry or order at the First National Bank of Albuquerque, Nineteen Hundred dollars to bq paid as follows: ¡$70 on 4-12-07 and $20 on 5-12-07 and $20 on the 12th of each and every succeeding months till the whole amount with interest is paid, Dollars with interest at the rate of nine per cent, per annum from Maturity date until paid.”

On the same day and concurrent with the signing of said note, the following memorandum of agreement was signed by Henry and accepted by appellee, viz.:

Albuquerque, N. M., Mch. 12-07-
“I have this day made a deed to Miss Catherine Hill to frac. Lots No. 10, 11 and 12 in block No. 3 Hughes Hiland Addition to the City of Albuquerque. Said deed to be delivered to her or assigns on the payment in full with interest a certain note of nineteen hundred dollars ($1,900) of even date (March 12-07) signed by said Catherine Hill and made payable to J. A. Henry, or his assigns. To be paid as follows: $70 Apr. 12-07 and $20 May 12-07, and $20 on the 12th of each and every succeeding month till the full amount is1 paid.
“(Signed) J. A. HENRY.
“The above agreement is the agreement between J. A. Henr'y and myself.
“(Signed) MISS CATHERINE HILL.”

These papers, together with the deed, were placed in an envelope and Henry signed a memorandum of escrow, in words as follows:

“Contract between J. A. Henry and Catherine Hill and deed to ber for Frac. Lots 10, 111 and 12,. Blk. 3, Hunings Highland Add. The said deed to be delivered to her when she pays in full a note for $1,900 with interest as specified in May 24, 1908-
“(Signed) J. A. HENRY.”

It does not appear that Miss I-Iill was present when the escrow memorandum was signed, but that paper is dated May 24th. The deed was acknowledged May 4, 1908. The appellee, with her mother and stepfather, continued in possession of tire property until the death of her stepfather in 1907, and the death of her mother pending this suit, and until the time of the trial. Dr. Henry died in July, 1908, and appellee continued to pay the monthly installments without anything having been said to her about interest until July, 1914. Dr. Henry’s estate was settled and the administrator was discharged on June 4, 1912. In July, 1914, Mrs. Hart, the administratrix, first demanded of appellee that she pay interest on the note. Appellee, however, never recognized any liability for interest. Appellant sought to show that A7ita O. Henry, one of the heirs at law, became owner of this note in 1911 through some arrangement made between the heirs of Henry, and that she thought at the time she became owner of the note that it was an interest-bearing obligation. The note was never indorsed to Yita O. Henry, and the trial court held that she took the note subject to all the defenses which might have been made against it in the hands of the original payee; that Yita O. Henry did not receive the note by indorsement, and that she was not a holder for value in due course, within the meaning of our statute or of the law merchant. The trial court admitted parol evidence to be introduced relative to the facts and circumstances attending the execution of the contract and note and as to certain statements made by Dr. Henry at that 'time. The court found that the note in question had been fully paid; that it was the intention of the parties that it should bear interest only from maturity; and decreed specific performance of the contract.

"While appellant has assigned 51 grounds of error, we are of the opinion that three questions are decisive of the case: First, under the terms of the note and contract, was interest payable from date or from maturity ? Second, assuming that the contract was ambiguous as to the interest provision, did the court commit error in permitting parol evidence to be introduced as to the facts and circumstances attending the execution of the¡ contract and the agreement which led up to its execution? Third, the note not being indorsed to Tita O. ITenry, was it subject to any defense which existed against the original holder ?

[1] As to the first proposition, it is appellant’s contention that there is a conflict between the written and the printed portions of the note,, and that under subdivision 4, § 23, of the Negotiable Instrument Law (section 611, Code 1915), the written provision must prevail. In this same section it is provided that, where an instrument provides for the payment of interest without specifying the date from which the interest is to run, the interest runs from date of the instrument, and, if the interest is undated, from the issue thereof. In this case, however, the note, after providing for the payment of interest, specifies when the interest is to begin, namely, from maturity date. A later clause in. the note provides that if any payment becomes due and is not paid, then the whole amount becomes due. It is apparent, we think, from the face of the note, that there is no conflict between the written and printed portions, but that it was the intention of the parties that the amount specified should draw interest only from the “maturity date.” There being no conflict, there was no occasion for a resort to the statute, nor does this construction result in creating a conflict between the contract and the note. The note and the contract being executed at the same time and as a part of the same contract, they must, of course, be construed together. In Elliott on Contracts, § 1522, it is said:

“Several instruments which refer to the same subject-matter between the same parties and made as parts' of substantially one transaction are considered as one contract, and receive the same construction as if their several provisions were in one and the same instrument.

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Bluebook (online)
167 P. 710, 23 N.M. 226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hill-v-hart-nm-1917.