Hillje v. Tri-City Equipment Co.

275 N.W. 880, 224 Iowa 43
CourtSupreme Court of Iowa
DecidedNovember 16, 1937
DocketNo. 44027.
StatusPublished

This text of 275 N.W. 880 (Hillje v. Tri-City Equipment Co.) 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
Hillje v. Tri-City Equipment Co., 275 N.W. 880, 224 Iowa 43 (iowa 1937).

Opinion

Mitchell, J.

Harry Hillje commenced this action at law to recover on a written instrument made, executed and delivered by the Tri-City Equipment Company and E. E. Swain, manager and owner, in the amount of $1,500. Plaintiff filed a motion to strike certain parts of the answer and counterclaim of defendant, which motion the lower court sustained, and Swain has appealed. '

*45 The petition alleges that the Tri-City Equipment Company was owned and operated by E. E. Swain, who made, executed and delivered, for a valuable consideration, to Harry Hillje a certain promissory note in the amount' of $1,500, said note being in the following form:

“$1500.00 July 24th 1934

“Six Months after date we promise to pay to the order of Harry Hillje Fifteen Hundred and no/100 Dollars

“Payable at 127 E. Sd. St., Davenport, Iowa.

“Value received with interest at 6 per cent per annum after Maturity.

“Settlement to be made in accordance with Contract between Both Parties Ref Incorporation

“Tri-City Equipment Co.

“E. E. Swain Mgr. & Owner.”

The answer filed admitted the execution of the instrument and stated that “the defendants specifically deny that said instrument is, or was, intended by the parties to be a promissory note but that in truth and in fact the same was intended to be merely a receipt. ’ ’ On the 20th day of February, 1936, at the time the case was reached' for trial, appellant filed a pleading-entitled “Amendment to Answer . and Counterclaim,” the material part of which is as follows:

“Further answering plaintiff’s petition, and as an additional defense thereto, the defendant alleges that on or about July 21, 1934, the plaintiff entered into an oral agreement with defendant E. E. Swain, who is, and was, engaged in business under the trade name of Tri-City Equipment Company, of which he then was, and now is, the sole owner and proprietor, by the terms of which plaintiff agreed to advance to said defendant the sum of Thirty-five Hundred Dollars ($3500.00) and in consideration therefor said defendant agreed that when said sum had been paid to him he would cause his business, to-wit: TriCity Equipment Company, to be incorporated under the laws of the State of Iowa, and that upon such incorporation shares of stock would be issued to plaintiff and to defendant in an amount equal to their respective contributions to the business; that it was further agreed between said parties that as partial *46 consideration for the covenants and obligations assumed by plaintiff in said agreement that the defendant E. E. Swain would furnish plaintiff with a position as salesman and bookkeeper in Tri-City Equipment Company prior to and -until the incorporation thereof at a salary of Twenty Dollars ($20.00) per week. ’ ’

It was then alleged that appellant furnished appellee with a position at the agreed salary and that appellee only partially performed the obligation assumed by him, advancing to appellant only the sum of $1,500; that he failed and refused to advance the further sum of $2,000, and that on this account appellee is not entitled to recovery. Then, in a separate count and counterclaim, based upon the same allegations, tO-wit: the failure of appellee to loan the additional $2,000, appellant asked for damages because of the failure to loan the additional sum. To this pleading appellee filed a motion to strike, in various divisions. Division one seeks to strike from the third paragraph of the answer the following: “That in truth and in fact the same was intended to be merely a receipt,” and as grounds for this part of his motion appellee shows the court that the allegations which he asked to have stricken were irrelevant, sham, redundant and immaterial, and that appellant sought to interpret and change the meaning of and to vary the terms of the written contract sued upon. In a separate division he moves to strike the answer and counterclaim, for three separate reasons, as follows:

“First, that the consideration set forth in the defendant’s alleged oral agreement with the plaintiff is wholly inadequate for the payment of Fifteen Hundred Dollars ($1500.00) in cash to the defendant by the plaintiff and that the only adequate consideration for the said payment to the defendant is the covenant and agreement of the defendant to repay such sum to the plaintiff as set forth in the note sued on herein.

“Second, that the contract of employment whereby the defendant alleges he was to employ the plaintiff as salesman and bookkeeper for a salary of Twenty Dollars ($20.00) a week is an entirely separate and collateral agreement from that sued on herein, being supported by a separate consideration, namely, the Twenty Dollars ($20.00) per week wages as set forth in the defendant’s Answer.

*47 “Third, that the alleged agreement whereby plaintiff.is claimed to have subscribed for stock in the said corporation to be organized is wholly separate from and collateral to the promissory note sued on herein for the reason that the right to recover upon the said stock subscription is personal to the corporation when organized and for the further reason that, as set forth in the defendant’s alleged answer, the defendant was not himself obligated to subscribe to stock in the said corporation and for the further reason that no damage whatsoever could inure to the defendant from any breach of the alleged subscription for stock in the said corporation to be organized.”

I. The first proposition that confronts us is the claim of appellant that that portion of the motion wherein appellee asked to have stricken part of the original motion, was not filed Avithin time.

Under section 11136 of the 1935 Code, all motions attacking an ansAver shall be filed before noon of the day succeeding that on Avliich the answer is filed. This question was never raised in the lower court and for the first time it is argued here. This court has time and again announced that it will not consider on appeal questions which were not raised in the lower court.

II. The first part of the motion asks to have stricken from the answer that part which alleges that the instrument Avliich is referred to as Exhibit B was intended to be merely a receipt.

The appellant in a long and very able argument insists that he does not violate the parol evidence rule, but overlooks the fact that the motion also contained other grounds, to wit: that it Avas irrelevant, sham, redundant and immaterial. Appellant says he is a business man, who owns and operates his oavii business, and then says that the instrument AA'hicli he signed Avas a receipt. Yet that instrument contains these words: “I promise to pay the sum of $1500.” The words of negotiability, “to the order of,” were set out in this instrument. The rate of interest was included, and the time of payment was specified. None of these things Avould be contained in a receipt. When appellant in his answer alleges that this is a receipt, the pleading on its face shows that it is false and should be stricken as such.

Where the contract is ambiguous the court may and *48 will receive parol evidence to aid it in the construction of a writing.

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Related

Bookin v. Iowa Southern Utilities Co.
268 N.W. 50 (Supreme Court of Iowa, 1936)

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275 N.W. 880, 224 Iowa 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hillje-v-tri-city-equipment-co-iowa-1937.