Hoge v. Farmers Market & Supply Co. of Las Cruces, Inc.

296 P.2d 476, 61 N.M. 138
CourtNew Mexico Supreme Court
DecidedApril 18, 1956
Docket5967
StatusPublished
Cited by38 cases

This text of 296 P.2d 476 (Hoge v. Farmers Market & Supply Co. of Las Cruces, Inc.) 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
Hoge v. Farmers Market & Supply Co. of Las Cruces, Inc., 296 P.2d 476, 61 N.M. 138 (N.M. 1956).

Opinion

KIKER, Justice.

This suit is upon a promissory note executed and delivered to plaintiffs by Farmers Market Trucking Company, Inc., hereinafter called Trucking Co. J. W. Taylor was secretary-treasurer of Trucking Co. and held the same office in Farmers Market and Supply Company of Las Cruces, Inc. - M. D. Bostick was president of both corporations.

The time came when Taylor desired to dispose of his stock in Tracking Co. and Bostick desired to dispose of his stock in Market Co. In consequence, there was executed and delivered an agreement over the signatures of both individuals and both corporations.

The agreement became a part of the record proper by being attached, in full, to defendant’s answer. By this agreement, Market Co. assumed and promised to pay three certain promissory notes owing by Tracking Co. to designated creditors; also to discharge open accounts owing by Trucking Co. to Market Co. totalling $21,672. There is attached to the contract an “Exhibit A” showing accounts totalling $30,278.49. The' only reference in the agreement to this exhibit is found in paragraph 2(e) thereof which reads:

“To assume, pay off and discharge any further or additional obligations and indebtedness owing by Farmers Market Trucking Co. as of Aug. 1, 1952 other than appears on or is specified in itemized list of accounts payable of said Farmers Market Trucking Co., marked Exhibit A, attached hereto and made a part hereof.” (Emphasis ours.)

Upon final consummation of the agreement, Bostick was to receive $3,000 and take over Taylor’s stock in Trucking Co. and then Taylor was to have Bostick’s stock in Market Co.

As between Taylor and Bostick the agreement seems to have been kept and performed fully. Trucking Co. apparently moved its operations to El Paso, Texas.

After plaintiffs’ note was due, suit was filed. Trucking Co. entered no appearance in the court below and does not appear here. Plaintiffs pleaded the substance of the paragraph above quoted from the agreement; and that their note was owing, though not due, when the agreement was made, so claiming the right to recover from Market Co. Defendant, Market Co., by answer, joined issue, pleading among other things that it was- never the intention of the parties that Market Co. should assume, pay off and discharge the note in suit.

Plaintiffs offered the note and contract in evidence and, after both were admitted, rested. Thereupon, defendant offered proof of the intention of the parties when contracting. Plaintiffs strenuously objected, urging that defendant’s attempt was to change, vary and modify, by parol- evidence, the clear and unambiguous terms of a written agreement.

In support of the proposition that, where the terms of an agreement are plain-, ly stated, without ambiguity, the intention of the parties must be ascertained from the language used, and that parol evidence is, in that situation, wholly inadmissible, plaintiff cites the following cases: Fuller v. Crocker, 44 N.M. 499, 105 P.2d 472; E. I. DuPont De Nemours & Co. v. Claiborne-Reno Co., 8 Cir., 64 F.2d 224, 89 A.L.R. 238; Franciscan Hotel Co. v. Albuquerque Hotel Co., 37 N.M. 456, 24 P.2d 718; Pople v. Orekar, 22 N.M. 307, 161 P. 1110; Alford v. Rowell, 44 N.M. 392, 103 P.2d 119; and others, but we consider the point so well established as a legal principle that citation of authority is not really necessary.

Market Co., appellee, argues that consideration of this contract must take in the entire contract as a whole and not a mere sentence or isolated paragraph and cites Colorado Telephone Co. v. Fields, 15 N.M. 431, 110 P. 571, 30 L.R.A.,N.S., 1088, in support of that proposition; also Franciscan Hotel Co. v. Albuquerque Hotel Co., supra.

As we have indicated previously, we agree with appellant as to the requirement of the law that the meaning of the contract, if it can be done, must be ascertained from a consideration of the contract itself; that parol evidence will never be taken as to the intent of the parties unless' there is uncertainty and ambiguity in the contract. We now agree with appellee that a single sentence or paragraph may not be selected as the entire dependence for the determination that a contract is clear and plain as to its meaning, or that it is uncertain, indefinite and ambiguous.

Considering the contract involved in this case as a whole, and not depending upon paragraph 2(e) solely, the following questions seem to arise: Did Trucking Co. have outstanding more than three promissory notes ? If it did have, why was it that only three promissory notes were mentioned for payment by Market Co., as shown by paragraphs 2(a), 2(b), and 2(c)? If Trucking Co. owed other promissory notes, ■by whom was it intended by the parties that they were to be paid ? Who was to pay and discharge the open accounts mentioned in Exhibit A to the contract? What was to become of these accounts?

There is no direct answer in the contract to any of the questions just stated.

Paragraph 2(e) is, in its language, to say the least, confusing. It binds Market Co. to pay off and discharge any further or additional obligations and indebtedness of Trucking Co. other than the open accounts mentioned in Exhibit A. As we view the matter, that language might have been intended, by its own terms and considering nothing else, to bind Market Co. to pay off and discharge all accounts listed on Exhibit A and any further and additional obligations. The language might also mean that,' considering the contract only, Market Co. would not pay the accounts shown oh Éx-' hibit A and would pay any other accounts outstanding and owing by Trucking Co.

The contract is peculiar in that, as to certain promissory notes and discharge of the account owing to Market Co., the contract, is definite and certain on the subject of what Market Co. agrees and assumes to pay and discharge but is not definite and certain as to any open accounts. ■

If the contract is to be interpreted as appellants have contended throughout, the obligations thereof could have been well stated in a single paragraph providing that Market Co. would assume, pay and discharge all promissory notes and all debts and accounts of every kind and character except, perhaps, the open accounts listed on Exhibit A. This is the meaning which appellants give to the contract. Appellee contends to the contrary that it was the intention of the parties, by the use of the language found in the agreement, that Market Co. would assume, pay and discharge three promissory notes and no more; that Market Co. would remit and discharge open accounts owing by Trucking Co. to Market Co.; that Market Co. was not bound to pay the open accounts listed on Exhibit A, but was bound to pay any open accounts owing by Trucking Co. that might later come to the knowledge of the parties; and that, at the full consummation of the agreement, Market Co. would pay to Bostick $3,000 and take over his stock.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Neverkovec v. Fredericks
87 Cal. Rptr. 2d 856 (California Court of Appeal, 1999)
Allsup's Convenience Stores, Inc. v. North River Insurance
1999 NMSC 006 (New Mexico Supreme Court, 1998)
Ratner v. MRC Partnership
156 F.3d 1244 (Third Circuit, 1998)
Casias v. Continental Casualty Co.
1998 NMCA 083 (New Mexico Court of Appeals, 1998)
Hansen v. Ford Motor Co.
900 P.2d 952 (New Mexico Supreme Court, 1995)
Jaramillo v. Providence Washington Insurance
871 P.2d 1343 (New Mexico Supreme Court, 1994)
Villella Enterprises, Inc. v. Young
766 P.2d 293 (New Mexico Supreme Court, 1988)
Levenson v. Mobley
744 P.2d 174 (New Mexico Supreme Court, 1987)
Valdez v. Cillessen & Son, Inc.
734 P.2d 1258 (New Mexico Supreme Court, 1987)
Garcia v. Truck Insurance Exchange
682 P.2d 1100 (California Supreme Court, 1984)
United Nuclear Corp. v. Mission Insurance
642 P.2d 1106 (New Mexico Court of Appeals, 1982)
Master Builders, Inc. v. Cabbell
622 P.2d 276 (New Mexico Court of Appeals, 1980)
Atlas Assurance Co. v. General Builders, Inc.
600 P.2d 850 (New Mexico Court of Appeals, 1979)
Stotlar v. Hester
582 P.2d 403 (New Mexico Court of Appeals, 1978)
McKinney v. Davis
503 P.2d 332 (New Mexico Supreme Court, 1972)
Lindbeck v. Bendziunas
498 P.2d 1364 (New Mexico Court of Appeals, 1972)
McDonald v. Journey
464 P.2d 560 (New Mexico Court of Appeals, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
296 P.2d 476, 61 N.M. 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoge-v-farmers-market-supply-co-of-las-cruces-inc-nm-1956.