Home Trust Co. v. Josephson

95 S.W.2d 1148, 339 Mo. 170, 105 A.L.R. 1063, 1936 Mo. LEXIS 617
CourtSupreme Court of Missouri
DecidedJuly 2, 1936
StatusPublished
Cited by49 cases

This text of 95 S.W.2d 1148 (Home Trust Co. v. Josephson) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Trust Co. v. Josephson, 95 S.W.2d 1148, 339 Mo. 170, 105 A.L.R. 1063, 1936 Mo. LEXIS 617 (Mo. 1936).

Opinions

Appeal by plaintiff from an order of the Circuit Court of Jackson County sustaining defendant's motion for new trial. With slight modification we adopt appellant's statement of the facts, without using quotation marks, as follows:

This is a suit in sixteen counts by Home Trust Company, appellant *Page 174 (hereinafter called plaintiff), a Kansas City banking house, against Reuben Josephson, respondent (hereinafter called defendant), on his indorsements of sixteen promissory notes for $1000 each (on which a credit was indorsed) and interest. Originally there were three additional defendants sued as trustees of the dissolved corporate maker of the notes, Fredric Hotel Building Company, but the suit was dismissed as to one of them and as to the others the jury, obeying a peremptory instruction, returned a verdict in their favor. Consequently the case stands here as a suit by the holder of the notes solely against the indorser thereof.

At the trial the court gave a peremptory instruction in favor of plaintiff on each count and, upon the verdicts returned accordingly, entered judgment for plaintiff. Thereafter the court sustained defendant's motion for a new trial, and this appeal presents the question of whether there was any justifiable ground therefor.

The petition, filed March 7, 1931, alleged as to each count that Fredric Hotel Building Corporation on May 8, 1929, executed and delivered to defendant, Reuben Josephson, sixteen notes for $1000 each, bearing six per cent interest from date, represented by attached interest coupons; that default was made in the interest due thereon on November 1, 1930, and thereupon under a provision contained in each note authorizing it to do so without notice, the holder thereof declared the principal of all same to be due and payable; that each note bore eight per cent interest after maturity; that $640 was credited on each note on December 31, 1930, leaving a principal balance due on each note of $408.38.

It was further alleged that defendant, Reuben Josephson, the payee in said notes, was the president, manager, director and principal stockholder of the maker, Fredric Hotel Building Company, and controlled same; that for value, before maturity, he indorsed each of said notes and delivered same to plaintiff, who thereupon became a holder in due course of same. It is further alleged that Fredric Hotel Building Company was dissolved January 1, 1931; that defendant, Reuben Josephson, always had an intent that neither he nor the maker should pay said notes; that demand had been made and refused. Judgment was prayed on each count for $408.38 with interest at eight per cent from December 31, 1930, and costs.

There was attached to the petition a true and exact copy of each note, and the indorsement thereon, and the attached interest coupons, verified by affidavit of plaintiff's treasurer. Each indorsement, omitting portions of the printed form which had been "x'd" out by typewriter, reads as follows:

"For value received Reuben Josephson hereby assigns and transfers the within note and coupons with all his interest in and rights under the Mortgage or Deed of Trust securing the same to ____"

(Signed REUBEN JOSEPHSON. *Page 175

Originally the printed form of indorsement on the back of each note had contained the printed words "Home Trust Company" and "without recourse." These printed words were "x'd" out and there was typewritten in the body of the form in place of "Home Trust Company" the name "Reuben Josephson."

Defendant's answer admitted the execution of the notes set out in plaintiff's petition by Fredric Hotel Building Company, and that he was its principal director and stockholder and that he always intended not to pay said notes, and that plaintiff accepted said notes in full settlement of a previous indebtedness due from defendant to plaintiff. The answer set up the following affirmative defenses. (1) An agreement that defendant should not be liable to pay said notes, and that his "assignment" thereof was made for plaintiff's accommodation. (2) A denial that defendant "indorsed" said notes "for value and before maturity," and delivered them to plaintiff. (3) The "assignments" were "without recourse." (4) There was no default except one fraudulently created by plaintiff to bring about a foreclosure of a deed of trust securing the notes, and that at such foreclosure plaintiff had chilled the bidding by misrepresentations as to the value, amount, and legality of the notes, and that plaintiff had purchased the property foreclosed, and that the value of that property was in excess of the amount of the notes. The answer was not verified. There was no specific denial of the other allegations of the petition, but simply a general denial, following specific admissions and denials, of all other allegations of the petition. Plaintiff's reply denied all new matter contained in the answer.

The case went to trial November 2, 1933, before a jury, Nathan Rieger, vice president of plaintiff, testifying in its behalf. The bonds, interest coupons from November 1, 1930, on, and the signed indorsements on the back thereof were admitted in evidence. Defendant admitted his signature thereon to be genuine. No objection was offered to the admission of the notes and indorsements in evidence. A credit of $634.19 appears on the back of each exhibit as follows: "By credit on Principal and Interest under foreclosure December 31, 1930, $634.19. M.L. Friedman, Trustee." The witness testified that demand had been made on defendant for payment and refused. On cross-examination he testified that the notes were given to the bank in settlement of defendant's personal indebtedness of $11,200 and $5000. Originally there were $18,000 of these notes, and the bank paid Josephson the difference. The notes were secured by a deed of trust on a triplex in Kansas City which was foreclosed, and the property bid in by Home Trust Company at a figure in the neighborhood of $11,000. Defendant admitted that there was no irregularity in this foreclosure sale so far as its legality was concerned. The notes were acquired by plaintiff at the time of their *Page 176 execution. On redirect examination Mr. Rieger testified that the condition of the notes, both face and indorsement, with the exception that a credit had been indorsed thereon, was just the same as when the notes first came into plaintiff's possession, and that there had never been any alteration.

Leonard Ulmann, defendant's attorney, was examined as a witness for plaintiff. He testified that defendant owned all the stock of Fredric Hotel Building Company, except qualifying shares. He testified no assets of said corporation had come into his hands as a trustee.

Defendant, Reuben Josephson, was examined as a witness for plaintiff. He testified that the Fredric Hotel Building Company was entirely inactive, and paid no fees. He was not cross-examined. He made no claim while a witness that the indorsements had been altered, or that he had any special agreements concerning same. He was not examined as to any of his alleged defenses at all.

With this evidence plaintiff rested its case. Defendant thereupon rested without offering any evidence.

Thereupon, at plaintiff's request, the court gave the following peremptory instruction:

"Now, at the close of all of the testimony in the case the court instructs the jury that your verdict must be for the plaintiff on each count for $496.81."

The court refused to give Instructions 4 to 12 requested by defendant, setting out his theories of the case.

The jury returned a verdict on each count for $496.81 in accordance with the court's peremptory instruction. Judgment was entered thereon for a total sum of $7948.96, and costs.

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

Related

Stacey v. Redford
226 S.W.3d 913 (Missouri Court of Appeals, 2007)
Brockman v. Soltysiak
49 S.W.3d 740 (Missouri Court of Appeals, 2001)
White v. Pruiett
39 S.W.3d 857 (Missouri Court of Appeals, 2001)
Bydalek v. Brines
29 S.W.3d 848 (Missouri Court of Appeals, 2000)
Bishop v. Cummines
870 S.W.2d 922 (Missouri Court of Appeals, 1994)
Sharaga v. Auto Owners Mutual Insurance Co.
831 S.W.2d 248 (Missouri Court of Appeals, 1992)
Henty Construction Co. v. Hall
783 S.W.2d 412 (Missouri Court of Appeals, 1989)
Vinson v. Vinson
725 S.W.2d 121 (Missouri Court of Appeals, 1987)
Campbell v. Kelley
719 S.W.2d 769 (Supreme Court of Missouri, 1986)
L. Harvey and Son Co. v. Jarman
333 S.E.2d 47 (Court of Appeals of North Carolina, 1985)
Rustici v. Weidemeyer
673 S.W.2d 762 (Supreme Court of Missouri, 1984)
Agway, Inc. v. Hotham
476 A.2d 1158 (Supreme Judicial Court of Maine, 1984)
Custom Craft Tile, Inc. v. Bridgecrest, Inc.
662 S.W.2d 320 (Missouri Court of Appeals, 1983)
Hamra v. Boone County Development Co.
602 S.W.2d 721 (Missouri Court of Appeals, 1980)
Rotermund v. Basic Materials Co.
558 S.W.2d 688 (Missouri Court of Appeals, 1977)
Cochran v. DeShazo
538 S.W.2d 598 (Missouri Court of Appeals, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
95 S.W.2d 1148, 339 Mo. 170, 105 A.L.R. 1063, 1936 Mo. LEXIS 617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-trust-co-v-josephson-mo-1936.