In Re French

28 Haw. 47, 1924 Haw. LEXIS 6
CourtHawaii Supreme Court
DecidedNovember 18, 1924
DocketNo. 1563.
StatusPublished
Cited by7 cases

This text of 28 Haw. 47 (In Re French) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re French, 28 Haw. 47, 1924 Haw. LEXIS 6 (haw 1924).

Opinions

OPINION OF THE COURT BY

PERRY, J.

(Peters, C. J., concurring in part and dissenting in part.)

This is an information by the attorney general, charging the respondent with professional misconduct. The facts in the case are not difficult of ascertainment. *48 Almost in their entirety, they are shown by undisputed evidence.

About May or June, 1923, one Mills Armstrong came to Honolulu from the mainland under engagement to enter the employment of Hawaiian News & Thrum’s, Limited, a Hawaiian corporation doing a mercantile business in this city, at a salary of $50 per week. The corporation advanced for him the cost of his passage hither and that of his family and he signed and delivered to his employer a promissory note, payable on demand, in the sum of $286, to cover the advances just mentioned. Armstrong’s testimony is that, under the terms of his employment, it was his duty to repair typewriting machines for the corporation but that soon after the commencement of his employment he was requested (and consented) to perform certain work not within the terms of his original employment, to wit, the repairing of adding machines, and that it was orally understood between his employer and himself that for this extra work he would be paid “an additional salary.” Upon this note Armstrong subsequently paid a total of $60 on account in instalments of $5 per week. The émployer made demand several times for the balance.

Armstrong remained in the employ of Hawaiian News & Thrum’s, Limited, for a period of eight months and early in February, 1924, entered the employ of the Office Supply Company, Limited, also a Hawaiian corporation doing business in this city, at a salary of $200 per month. Hawaiian News & Thrum’s, Limited, continued making demands for the amount of the balance of the note and on or about February 29, 1924, threatened suit. The total of Armstrong’s debts other than the note in favor of Hawaiian News & Thrum’s, Limited, did not at this time exceed $50.

Armstrong did not at any time receive from Hawaiian *49 News & Thrum’s, Limited, payment or allowance for the extra compensation above mentioned.

On February 29, 1924, after the threats of litigation had been made, Armstrong called on respondent at the latter’s office, related to him all of the foregoing prior history, told him that he wished to avoid paying the balance of the note, saying that he believed the extra compensation fully met the balance that otherwise would have been due and also that he thought he could not prove to the satisfaction of the court the agreement for extra pay because it was oral, and asked respondent for advice as to how to accomplish his object.

Respondent said to Armstrong that he would not advise him to go into bankruptcy, giving as his reason that Armstrong was still a young man and that it would be unwise for him to pass through bankruptcy so early in his business career. Respondent did not advise Armstrong to await suit by Hawaiian News & Thrum’s, Limited, on the note and to defend against that suit by presenting his claim for extra compensation, •either by way of counterclaim or otherwise. Nor did he advise Armstrong that the worst that Hawaiian News & Thrum’s, Limited, could accomplish by bringing suit would be to get judgment for the balance found by the court to be due on the note and to enforce that judgment by garnisheeing one-fourth of his salary receivable from the Office Supply Company, Limited, as it accrued on each pay day. The advice given was that Armstrong execute and deliver to the respondent a promissory note whereby Armstrong would promise to pay to the respondent or order on demand the sum of $320 together with interest thereon at the rate of 9% per annum; that an action would be brought on that note against Armstrong; that in that action his employer, the Office Supply Company, Limited, would be joined as garnishee; that *50 upon recovery of judgment in the action, the judgment would be enforced by collecting from time to time from the garnishee one-fourth of Armstrong’s salary. In this plan of action Armstrong acquiesced. At this point it should be added that the amount to be inserted in the note was arrived at in this way: Armstrong had stated to the respondent that he, Armstrong, planned to leave the employ of the Supply Company about the middle of June, 1924, and between the two it was calculated that the sum of $800 would cover the amount that Hawaiian News & Thrum’s could during the intervening period recover out of Armstrong’s salary by garnishment thereof if it should bring a suit on the note which it held from Armstrong. It was thought, however, that “an odd amount would be better” and the amount was consequently fixed at $320. It was also agreed that Armstrong, if asked, should say that respondent had loaned that amount to him. In truth and in fact Armstrong did not at the time of the note owe to the respondent and has not at any time owed to him $320 or any other sum of money. The note was entirely without consideration and this, of course, was fully known to the respondent. It was in every respect a fictitious note. Respondent asked Armstrong not to tell the Office Supply Company about the proposed proceedings.

In pursuance of these suggestions of the respondent and of the plan of action adopted by him and Armstrong, the respondent on the same day of the interview prepared a note reading as follows:

“$320.00 Honolulu, Hawaii, September 1923

“On demand after date, without grace, I, or we,, or either of us, promise to pay to G. K. French or order, at Honolulu, T. H., the sum of Three hundred and twenty dollars, in gold coin of the United States of America of the present standard value, together with *51 interest thereon in like gold coin at the rate of nine per cent per annum from date until paid, for value received.”

It was signed by Armstrong, with the date blank. The date was subsequently inserted by or at the instance of the respondent as September 26, 1923. By indorsement the note was shortly thereafter assigned by the respondent to one John Pahk, a Korean clerk in his office, and the action thereon was brought in the name of Pahk as plaintiff and assignee. In the respondent’s office and by his direction, a declaration and summons in an action of assumpsit based upon the fictitious note Avere prepared, the Office Supply Company, Limited, as employer and debtor of Armstrong, being joined as garnishee; and the declaration was filed in the district court of Honolulu and the summons issued on March 1, 1924, returnable on “the first Monday following the date of service” which first Monday was probably March 3, 1924. There were continuances of the case from time to time and on March 17, 1924, the hearing was had.

The essential parts of the declaration read as follows: That the plaintiff “for cause of action alleges:

I.

“That defendant, on September 26, 1923, at said City and County of Honolulu, made and delivered his certain promissory note to (3. K. French, or order, for the sum of $320.00, payable on demand, which said promissory note is in words and figures as follows:” (Copy of the note was here set forth.)

II.

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Bluebook (online)
28 Haw. 47, 1924 Haw. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-french-haw-1924.