Johnson v. Bucklen

36 N.E. 176, 9 Ind. App. 154, 1894 Ind. App. LEXIS 16
CourtIndiana Court of Appeals
DecidedJanuary 12, 1894
DocketNo. 905
StatusPublished
Cited by21 cases

This text of 36 N.E. 176 (Johnson v. Bucklen) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Bucklen, 36 N.E. 176, 9 Ind. App. 154, 1894 Ind. App. LEXIS 16 (Ind. Ct. App. 1894).

Opinion

Lotz, J.

The appellees brought this action against the appellant, and alleged, in their complaint, that the appellant executed the following described note or contract, to wit:

“$500. Elkhart, Ind., May 20, 1890.
“For value received, I promise to pay to S. D. Kim-hark, or order, the sum of five hundred dollars, payable ■at the First National Bank, Elkhart, Ind., with eight per cent, interest after maturity and attorney’s fees, without relief from valuation or appraisement laws. This note is given in consideration that said payee will remove and locate his entire manufacturing establishment to the vicinity of Beardsley avenue and Myrtle street, said factory to be placed in brick buildings, having a floor room •of not less than 80,000 square feet. This note due and payable as soon as said buildings are erected and said factory in operation therein. R. M. Johnsoh.”

It is further alleged that, after the execution of said note, said Kimbark did remove and locate his entire manufacturing establishment to the vicinity of Beardsley avenue and Myrtle street, and placed the same in brick [156]*156buildings having a floor room of 50,000 square feet and over, and that said factory was in operation, therein prior to the commencement of this action, all of which -facts, the defendant well knew; that said Kimbark indorsed said note, in writing, to these plaintiffs, and that they are now the owners thereof; that after the plaintiffs became the owners of the note, they deposited it in the First National Bank of the city of Elkhart for collection, and defendant was notified thereof; that defendant appeared at said bank, and was then and there informed by the plaintiffs that said note was due and payable, and defendant then and there admitted to the plaintiffs that said note was due and payable to the plaintiffs, but defendant then and there agreed with plaintiffs that in consideration of the fact that the plaintiffs would extend the time of payment of said note for a period of thirty days, to wit, thirty days from the 23d day of September, 1891, he, defendant, would pay said note, at the expiration of the time, to wit, on the 23d day of October, 1891; that in consideration of the promises and agreements of said defendant to pay said note on said last named day, the plaintiffs then and there agreed with said defendant to said extension, and did then and there extend said note thirty days; that the defendant wholly failed to pay said note at the end of said thirty days, and has never paid any part thereof, and that the same is due and unpaid.

A demurrer was overruled to this complaint, and this ruling is one of the errors assigned.

Counsel for appellant contend that the promise to pay the note, and not the note itself, is the gravamen of the action. In this contention we do not concur.

It is a condition precedent to the right to maintain this action that the payee Kimbark should locate his. manufacturing establishment at the point designated, [157]*157and place the same in brick buildings, having the floor capacity named, and to commence the operation of his factory therein. The plaintiffs were not required to show a literal compliance with these conditions, but they must show a substantial-compliance. Indianapolis, etc., R. R. Co. v. Holmes, 101 Ind. 348.

The removal, location and operation of the factory are the consideration of the note. Whatever benefit accrues to the appellant, grows out of the fact that the factory is located and operated in a certain place. If, substantially, all of the factory was removed to the designated place, and if it was constructed substantially of the dimensions given in the contract, and put in operation, this would be a compliance with the conditions within the requirements of the law.

The complaint avers that the entire establishment was removed and placed in brick buildings, having a floor room of 50,000 feet and over. How much over, is not stated, but it may have been enough to fill the letter of the contract.

It is further averred that the note was due and unpaid. These averments, of themselves, make the complaint sufficient to withstand the demurrer. But the pleader seemingly does not regard the condition precedent as having been substantially performed, and other facts are alleged to show that a strict performance was waived by the appellant. The performance of a condition precedent may be waived in many ways. A person who made a subscription to the capital stock of a railway company on the express condition that the road should be constructed on a certain line, and to within a certain distance of a given place, after the road had been constructed on another line, gave his note for the amount of his subscription. This was held to be a waiver of the condition. Evansville, etc., R. R. Co. v. Dunn, 17 Ind. 603.

[158]*158Where money is stipulated to be paid upon a condition expressed, and, subsequently, a promissory note is given for the amount, payable without condition, the condition precedent is waived. Swank v. Nichols, Admr., 20 Ind. 198; Swank v. Nichols, Admr., 24 Ind. 199. See, also, Hunter v. Leavitt, 36 Ind. 141; Masonic Mutual, etc., Ass’n v. Beck, 77 Ind. 203 (207).

It was at the option of the pleader to aver performance of the condition precedent or to aver a waiver of the condition. Indiana Ins. Co. v. Capehart, 108 Ind. 270 (273).

We think the only purpose of the averments with reference to the extension of the time of the maturity of the note is to show that the appellant waived a strict performance of the condition. The facts alleged do constitute a waiver. There was no error in overruling the demurrer.

The court made a special finding of facts, and stated conclusions of law. They are as follows:

“1. That on the 20th day of May, 1890, the defendant executed a contract, a copy of which is filed with the fourth paragraph of the complaint, to Seneca D. Nimbarle, who indorsed it to the plaintiffs.
"2. That the said Nimbark never did remove and locate his entire manufacturing establishment to the vicinity of Beardsley avenue and Myrtle street, and place said factory in brick buildings having a floor room of not less than 80,000 square feet, as called for in said contract.
“3. That the plaintiffs claimed that the defendant had agreed to waive the performance of said conditions, and asked him to pay the sum of money called for in said contract, but the defendant denied such waiver; that while matters stood thus, the defendant and the plaintiffs met at the First National Bank in Elkhart, where said [159]*159note was deposited, on the 23d day of September, 1891, when it was agreed between the defendant and the plaintiffs, that they should extend the time of payment of said note for thirty days from that date, in consideration of which the defendant agreed to pay it; that the plaintiffs did so extend the time of payment for thirty days, at the expiration of which time the defendant refused to pay.
“4. That a reasonable fee for plaintiffs’ attorney is $75. J. M. Vaneleet, Judge.
“Whereupon the court finds as its conclusions of law .

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Bluebook (online)
36 N.E. 176, 9 Ind. App. 154, 1894 Ind. App. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-bucklen-indctapp-1894.