Hogue v. McClain County Nat. Bank

1935 OK 1222, 47 P.2d 575, 173 Okla. 122, 1935 Okla. LEXIS 555
CourtSupreme Court of Oklahoma
DecidedJuly 2, 1935
DocketNo. 24295.
StatusPublished
Cited by4 cases

This text of 1935 OK 1222 (Hogue v. McClain County Nat. Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hogue v. McClain County Nat. Bank, 1935 OK 1222, 47 P.2d 575, 173 Okla. 122, 1935 Okla. LEXIS 555 (Okla. 1935).

Opinion

PER CURIAM.

This action was commenced in the district court of McClain county ¡by the McClain County National Bank against S. M. Hogue and Laura J. Hogue for recovery of $625, with interest, alleged to be due upon a promissory note, payable to the order of said bank, made by the defendants S. M. Hogue and Laura J. Hogue. The note was endorsed by E, E. Glaseo and Hardin Ballard. They were inamed as defendants in the petition, but as no summons appears to have been issued or served upon them and no judgment was rendered against them, the defendants S. M. Hogue and Laura J. Plogue will be treated as the sole defendants in the action.

The petition was in the usual form, and, so far as material here, alleged that the note was executed by the defendants S. M.. Hogue and Laura J. Hogue “for a valuable consideration to them in hand paid.”

The defendants filed an answer, the material parts of which are as follows:

“These defendants admit that they executed and delivered to the plaintiff herein said promissory note on or about the 4th day of June, 1931, but specifically deny that the execution and delivery of said note was for a valuable consideration, to them in hand paid. And these defendants allege and state that they executed and delivered said note to the said plaintiff under the express condition and understanding of these defendants with the said plaintiff and with their codefendants herein, E. E. Glaseo and Hardin Ballard, that said note should not be binding and take effect and should not become a valid obligation of these answering-defendants until said legal services had been performed by their eodefendants herein, E. E. Glaseo and Hardin Ballard, which said legal services have never been performed by their said codefendants and said note has never become a valid and binding obligation on these answering defendants, and the consideration for the same has wholly and entirely failed.
“Further answering, these answering defendants state that at and prior to the said 4th day of June, 1931, they had employed their codefendants herein, E. E. Glaseo and Hardin Ballard, as attorneys to represent them in certain litigation then pending with one E. F. Stephens and other parties and in said other litigations to be instituted against the said E. F. Stephens and other parties; that at said time it was agreed by and between these answering defendants and their codefendants herein that $625 should be a full and complete fee to be paid to their said codefendants for legal services performed in said litigation and that said fee, or any part thereof, should not be paid and these answering defendants should not ¡become liable to pay the same until said litigation contemplated had been prosecuted to a successful determination. That on said 4th day of June, 1931, the said E. E. Glaseo and Hardin Ballard requested these answering defendants to execute a promissory note to the McClain County National Bank in said amount of $625, said note not to become due and payable until said legal services above mentioned had been completed and said actions prosecuted to a successful determination; that on said date these answering defendants and the said E. E. Glaseo and Hardin Ballard, went to the McClain County National Bank and the entire matter was explained to John H. Perry, president and managing officer of said plaintiff bank, and the full and complete understanding at that time between the said John H. Perry, as managing officer of the plaintiff bank, and these defendants and their codefendants herein was that said note should be executed by thesd answering defendants to the said plaintiff herein and that the said plaintiff should hold the same, but that the same should not become a binding obligation and no money should be paid out on the same to the defendants herein until *124 such time as said legal services above contemplated had been completed and said litigation prosecuted to a successful determination. That with said understanding and under said terms and conditions these answering defendants executed said note and delivered the same to the plaintiff herein to be held under the conditions and agreements above stated.
"That after starting a part of the litigation above mentioned, the said E. E. Glaseo and Hardin Ballard abandoned the other litigation which they had agreed to conduct for these answering defendants and refused to proceed further with any of said matters ; and that the consideration for said note has therefore failed and the conditions under which said note was to become a valid and existing obligation have never occurred and there is therefore no liability on behalf of these answering defendants.”

Upon motion of the plaintiff, the court rendered judgment on the pleadings against the defendants for the amount of the note, with interest and attorneys’ fee. Erom this judgment the defendants have appealed.

For reversal, the plaintiffs in error contend : That the answer effectively denied that the note was given for a valuable consideration; that it alleged delivery of the note upon a condition which was never fulfilled, and that the note never became a binding obligation; and that even though the answer failed to state a defense, the court should have permitted an amendment.

The defendants in error concede that the answer 'alleged failure of consideration, but contend that that allegation was overcome by other portions, of the answer which showed that Hiere was a- consideration; that the facts aileged are no defense for the reason that they constitute an oral contradiction of the terms of the note; that as a matter* of law the president of the bank had no authority to make the agreement alleged; and, further, that the record does not show any application to amend the answer, or order of the court denying the same.

If the allegations of the answer were sufficient to raise an issue of fact, either as to the want of consideration for the note or as to the conditional delivery thereof, it stated a defense, and it was error for the trial court to sustain the motion for judgment on the pleadings.

The denial of consideration is ineffective, if, as defendants in error contend, the special facts pleaded in the answer show a consideration. White v. Kemper Military School, 132 Okla. 189, 270 P. 31.

Defendants in error argue that the answer affirmatively shows that there was a consideration, but we are not informed what it' was. Consideration for a note may be anything that would support a simple contract. Section 11324, O. S. 1931. It is not necessary that the maker receive a benefit. It is sufficient if a benefit is conferred upon a third party, or a detriment is suffered by the payee, at the instance of the maker. Neylon v. Liberty National Bank of Pawhuska, 126 Okla. 188, 259 P. 545. It is not necessary that the consideration should pass from the promisee. The maker’s liability to the payee may be supported by a consideration coming from a third person who is not a party to the instrument. 8 O. J. 213. Thus, there would be a consideration for the note in question if the bank or the attorneys suffered a detriment, or if plaintiffs in error received a benefit, at the instance of plaintiffs in error.

As between the original parties to a note, or between the payer and any person not a holder in due- course, the consideration for the note may always, in the absence of an estoppel, be inquired into, and a want or failure of consideration constitutes a good defense. Section 11327, O. S.

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Bluebook (online)
1935 OK 1222, 47 P.2d 575, 173 Okla. 122, 1935 Okla. LEXIS 555, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hogue-v-mcclain-county-nat-bank-okla-1935.