Hoyt v. Clarkson

31 P. 198, 23 Or. 51, 1892 Ore. LEXIS 102
CourtOregon Supreme Court
DecidedOctober 5, 1892
StatusPublished
Cited by8 cases

This text of 31 P. 198 (Hoyt v. Clarkson) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoyt v. Clarkson, 31 P. 198, 23 Or. 51, 1892 Ore. LEXIS 102 (Or. 1892).

Opinion

Lord, C. J.

This is a suit in equity, brought by the plaintiff against the defendant as his agent, for an accounting of alleged business transactions covering a period of about eight years. The facts show that in October, 1880, the plaintiff and defendant entered into an agreement whereby the defendant was to take full charge and control of plaintiff’s stock, consisting of horses, mules, and cattle, and of. certain ranches then in [52]*52possession of the plaintiff, it being understood that the defendant as such agent was to sell the increase of said stock and pay the expenses of carrying on the business out of the proceeds of the sale and other money furnished by the plaintiff. For his services in conducting and managing the business, the defendant was to receive the spm of forty dollars per month, and, as the defendant claims, to have the privilege of looking after his own horses, and of buying and selling horses.

The plaintiff in his complaint, after alleging the facts out of which the business relation existed between them, alleged that “The defendant had fraudulently, and in violation of his said trust, spent large sums of money belonging to this plaintiff for matters and things personal to himself and entirely foreign to the necessary management and care of plaintiff’s business; and that he had from time to time sold and otherwise disposed of a large number of plaintiff’s said horses, mules, and cattle, and rendered no account therefor; that he has demanded of the defendant an accounting of all his transactions with reference to plaintiff’s said property and business, and demanded of him to be allowed to examine all bookst of account kept by him in relation to said business since his employment, but that the defendant refused to render any account or to permit plaintiff to examine any of his said accounts.”

In defense, the defendant pleaded full and complete settlement of all business transactions between the plaintiff and defendant down to the twenty-fifth of May, 1888, leaving an unsettled account only from the date last mentioned to the fifteenth day of December, 1888, and the execution by plaintiff of his promissory note for the sum of one thousand nine hundred and sixty-nine dollars, the amount found due on said settlement; and also alleged that plaintiff had wrongfully possessed himself of all books and accounts kept and owned by defendant showing said .business transactions and settlements, and thereby [53]*53prevented the defendant from rendering an account of the same.

Upon the issues thus presented by the pleadings, the cause went to trial, and the first issue tried and determined by the court was that of the settlement of May 25, 1888. Upon that issue the court held that ‘ ‘ the defendan t would not be required to account to and with the plaintiff in reference to any matter which occurred prior to the twenty-fifth day of May, 1888, but that plaintiff might show any errors or omissions in said settlement and any proper charges against the defendant prior to said date. ”

The trial court tried the case upon the theory that the defendant having pleaded a settlement, the burden rested upon him to establish it by a preponderance of the evidence. Entertaining this view, the trial court permitted the plaintiff to put the defendant on the stand, and to interrogate him fully as to all business transactions between the parties from the beginning of the defendant’s agency, without pointing out or claiming any particular matter or item had been left out of said settlement by mistake, fraud, or otherwise. As the plaintiff admitted the execution of the note for the sum of one thousand nine hundred and sixty-nine dollars, the amount found due on a full settlement as alleged, the counsel for the defendant insist that the burden rested on the plaintiff to overcome this prima facie evidence of a settlement by a preponderance of evidence. While, therefore, the counsel for the defendant claims that the court was correct in finding that there had been a settlement between the parties on the twenty-fifth day of May; 1888, he thinks the court erred after so finding, in allowing the defendant to be interrogated as a witness in reference to the matters as above stated. He further insists that the pleadings were not broad enough to warrant such an inquiry.

Without doubtiDg the right of a party to inquire into and set aside a settlement for fraud or to correct mistakes, he maintains that before this can be done the pleader must set out the facts constituting the fraud, or spe[54]*54cifically point out the items claimed to have been omitted or included by mistake.

As the plaintiff in his pleadings nowhere claims any fraud or mistake in the settlement, he contends that after the trial court passed upon the question of settlement, it should have refused to allow the evidence in reference to the previous business transactions of the parties, but should have dismissed the plaintiff’s bill unless he obtained leave and amended his complaint. The point the plaintiff sought to make was that there had been no full and complete settlement of the business transactions between the defendant and himself, or in fact any settlement whatever except for the personal wages of the defendant, and that the promissory note executed by him was given therefor and for no other consideration. The court though found otherwise, — that there had been a full and complete settlement between them, — and determined that the defendant was not required to account to the plaintiff for any matter which occurred prior to such settlement, but that the plaintiff might show any errors or omissions and proper charges against the defendant prior thereto. While the trial court was satisfied that the settlement did include their other business during the period stated, other than wages as claimed by the plaintiff, it was not fully satisfied from the evidence that some error or mistake might not have occurred in the settlement ; and to avoid any injustice, in view of the relation of the parties, it concluded to permit the plaintiff to offer proof of the same. This was opening the account for examination and permitting the plaintiff to proceed to prove errors or mistakes, if he could, without specifying in what such errors or mistakes consisted, or any allegations in respect thereto.

While it is true that a court of equity will more readily open and examine a settled account between parties standing in fiduciary relation than others, and even sometimes entirely disregard such settlement when such parties are not on an equal footing in settling such account, yet when [55]*55a settlement oí accounts has been deliberately made and a note voluntarily given for an' ascertained balance, it will not reexamine such accounts and grant relief except on precise allegations of such errors or mistakes, and clear and satisfactory proof of the same. In Matasche v. Hughes, 7 Or. 41, the court says: “The giving of a promissory note is prima facie evidence of an accounting and settlement between the parties of all demands between them up to the time of the execution of the note. The presumption is only prima facie, and is liable to be explained, but until explained it is to be oaken as true, and affords sufficient evidence that at its date the maker owed the payee the amount named in the note. ” The presumption is in favor of the correctness of the settlement, and that the note given for the balance ascertained on such settlement expresses the truth.

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Cite This Page — Counsel Stack

Bluebook (online)
31 P. 198, 23 Or. 51, 1892 Ore. LEXIS 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoyt-v-clarkson-or-1892.