Horn v. Beal

22 P.2d 475, 137 Kan. 777, 1933 Kan. LEXIS 332
CourtSupreme Court of Kansas
DecidedJune 10, 1933
DocketNo. 30,982
StatusPublished

This text of 22 P.2d 475 (Horn v. Beal) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Horn v. Beal, 22 P.2d 475, 137 Kan. 777, 1933 Kan. LEXIS 332 (kan 1933).

Opinion

The opinion of the court was delivered by

Johnston, C. J.:

This action, as originally brought by F. M. Horn against A. Beal, was one to recover on three cattle transactions between the parties. One count was to recover $7,000, another one to recover $111.50 on a commission for the sale of cattle, and still another to recover $14,500. Interest on the several claims was asked.

While the case was pending in the district court, and before trial, A. Beal died testate, and there was a revivor of the case in the names of Harlan E. Beal and the National Bank of Topeka, executors of the last will of A. Beal. Harlan E. Beal and the National Bank of Topeka thereafter prepared the defense and tried the case, contesting the claims of plaintiff. The defendants prevailed in the action, and plaintiff appeals.

The principal controversy between the parties arises upon the first and third counts of plaintiff’s petition, in which he asked a recovery of $7,000 on the first count, and $14,500 upon a third count. On the first, plaintiff alleged, in substance, that in 1925 the plaintiff and A. Beal entered into an oral agreement that the plaintiff should use his time and experience in the purchase of cattle in Texas and that A. Beal would furnish the money to pay for them, the cattle to be pastured and fed by Beal and then marketed, the profits and losses to be equally divided between plaintiff and Beal after deducting any legitimate expenses incurred by either party in handling them.

It was alleged that in 1926, by oral agreement, 300 head of steers were purchased from W. R. Schreiner, of Texas; that plaintiff went to Texas and made the purchase, and that on October 14, 1926, the cattle were received and paid for by a draft on Beal, and then it was arranged to have them wintered by Schreiner; that these cattle were shipped to Beal at Valencia in the spring of 1927; that on or about August 1, 1927, W. H.'Shroyer, who was a cattle dealer of the Missouri Live Stock Commission Company, of St. Joseph, Mo., came to the plaintiff’s office and represented that he had a buyer interested in the purchase of said steers. Beal and .plaintiff, con[779]*779sidered the price at which they would sell the cattle and then agreed not to sell them for less than $100 per head. That on August 2, Shroyer came to plaintiff and after further negotiations proposed that the cattle be sold to W. D. Heidrick on a basis of $95 a head for 240 of them, and $90 a head for the remaining sixty. That Shroyer then produced a written contract of sale of the date of August 2, 1927, which was signed by Beal, and W. D. Heidrick, by Shroyer, and which plaintiff signed. Plaintiff alleged that the contract as so signed and delivered to Shroyer was done with the fraudulent intent of deceiving and defrauding plaintiff; that Beal did not sell the cattle to Heidrick as stated for the price mentioned therein, and in truth and in fact no sale was made at that time. The contract of sale, it was alleged, was executed by Beal in conspiracy with Shroyer with the purpose of defrauding plaintiff; that the statements in the contract were false and fraudulent, and were made for the purpose of inducing plaintiff to accept his proportionate share of the profits derived from the claimed sale, and that Beal after-wards purchased the cattle from Shroyer and thus fraudulently obtained ownership of the cattle to be held and sold by him on a higher market; that the cattle were actually sold in the fall of 1927 by Beal, at a price of approximately $40,000, the exact amount being unknown to plaintiff, and that plaintiff was induced to accept as his proportionate share of the profits the sum.of $1,960.53, under the sale contract, and that this sum was accepted by him relying on the truth of the representations made by Beal. Plaintiff claimed that his share of the net profits received from the actual sale of the cattle was approximately $7,000 in addition to the amount received by plaintiff for which he made settlement. For this $7,000 he asked judgment against defendants.

The claim of $111.50 under the second count was for one-half of the commission, $223, claimed to have been paid on the sale of the 300 head of steers sold to Shroyer which was charged to him in the settlement and which he alleges he would not have paid except for the fraudulent representations that an actual sale had in fact been made.

In the third count plaintiff alleges that in 1926 he told A. Beal that W. R. Schreiner, of Texas, had 400 three-year-old steers for sale and advised Beal to make arrangements for their purchase. The plaintiff says that he procured an option for their purchase and delivery in the succeeding fall, and he states that it was arranged that [780]*780the purchase should be made by both parties on the same terms as to payment and division of profits as in former deals; that later, in October, 1927, when plaintiff inquired of Schreiner when he would be ready to deliver the steers he was told that they had been already sold to Beal for $70 per head, to be pastured and fed by Schreiner until May 1, 1928, and that at the time of the sale to Beal the latter had fraudulently represented to Schreiner that the reason plaintiff did not come down on the purchase was that plaintiff was too busy to get away. He further alleged that the steers purchased by Beal were the same ones upon which he had obtained an option and that they were to be purchased upon the same arrangements as the other deals between him and B.eal. He alleged that there had been three former cattle deals between them on the basis mentioned, in one of which there had been a loss which was adjusted in the settlement made, in which the profits had been equally divided between them, and that there was a profit on the purchase of the 400 steers of $29,000, one-half of which he claimed as his share in the transaction.

In their answer defendants deny there was ever any general partnership between Beal and the plaintiff, but they admitted that there were several individual or special agreements in which plaintiff had an interest, but that settlements had been made at the closing of these deals. One of these was the purchase and handling of the 300 steers mentioned in the first count of the petition, and that these steers were purchased and shipped to Valencia to Beal and after being pastured and fed were sold to Shroyer, and that the profits of the transaction were equally divided between them. On January 16, 1928, they alleged, the settlement was made. They specifically deny that there was any misrepresentation or fraud in the sale to Shroyer and allege that Shroyer purchased the 300 head of steers and later sold them to A. Beal and his son, Harlan E. Beal, for a small margin of profit. Shroyer, they alleged, sold the cattle to A. Beal and H. E. Beal, and that the plaintiff had no connection with ;fche purchase, had no interest in those steers then or since that time. They state that they purchased them solely on their own account, and that neither A. Beal nor his son, Harlan E. Beal, ever had made any agreement that plaintiff should have any part in the ownership of the cattle or profits or rights in that purchase. They deny that plaintiff had any interest or connection with the transaction mentioned in the third count of the petition where 400 head of cattle [781]*781were purchased by A. Beal and his son, Harlan E. Beal, alleging that they were purchased solely on their own account and that plaintiff had no interest in them.

On the issues joined testimony was produced and the jury made special findings as follows:

“1.

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Bluebook (online)
22 P.2d 475, 137 Kan. 777, 1933 Kan. LEXIS 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horn-v-beal-kan-1933.