Joseph J. Keresey, Plaintiff-Appellee-Appellant v. New Milford Tractor Corporation, Thomas Costello, and Frank La Grotta

234 F.2d 894, 1956 U.S. App. LEXIS 4407
CourtCourt of Appeals for the Second Circuit
DecidedJune 18, 1956
Docket23800_1
StatusPublished

This text of 234 F.2d 894 (Joseph J. Keresey, Plaintiff-Appellee-Appellant v. New Milford Tractor Corporation, Thomas Costello, and Frank La Grotta) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph J. Keresey, Plaintiff-Appellee-Appellant v. New Milford Tractor Corporation, Thomas Costello, and Frank La Grotta, 234 F.2d 894, 1956 U.S. App. LEXIS 4407 (2d Cir. 1956).

Opinion

MEDINA, Circuit Judge.

This case involves a controversy which arpse out of the sale by plaintiff, Joseph J. Keresey, on January 8, 1953, of twenty-two dairy cows. The transaction was evidenced by two documents: (1) a Conditional Sale Contract in the amount of $11,890.63 signed by defendants, Thomas Costello and Frank La Grotta, together named as “buyer,” and by plaintiff as “seller”; and (2) a promissory note in the same amount, also signed by Costello and La Grotta, with *895 out qualification and apparently as comakers. The jury having found for plaintiff, La Grotta appeals from the judgment entered on the verdict.

At the outset we may brush aside Keresey’s various objections to the form of La Grotta’s notice of appeal and claims of insufficient exceptions to the refusal of the trial judge to charge as requested; these are wholly lacking in merit or substance. Nor need we consider plaintiff’s cross-appeal from so much of the judgment as was entered on a verdict in favor of another defendant, New Milford Tractor Corporation, by direction of the court, on the ground that the signature of New Milford Tractor Corporation on both documents was for accommodation only and ultra vires; this was filed subject to the condition that this court “orders a new trial for defendant-appellant La Grotta,” which we do not. The appeal from the order denying the motion for a new trial need not concern us as it attempts to raise the same points as does the appeal from the judgment.

Accordingly, we shall consider on the merits only the points urged for reversal by La Grotta, which relate to the refusal to charge the jury in the language of La Grotta’s requests for instructions numbered 5, 6, 7 and 9, hereinafter referred to.

The case bristles with disputed questions of fact. Costello ran a dairy farm and desired to purchase twenty-two cows from Keresey, who, because of Costello’s impaired financial condition, refused to sell on the signature of Costello alone. La Grotta, a friend of Costello, urged Keresey to make the sale, which was consummated by the execution of the documents above referred to, from which it would appear that the sale was made to Costello and La Grotta as co-buyers.

As it turned out Costello became bankrupt and Keresey repossessed himself of some of the cows. When Keresey sought to recover what he claimed to be due from La Grotta, a large number of defenses and contentions were raised, some of which did not develop until the trial was in progress.

La Grotta insisted that he was not primarily liable, that he was not a comaker or even a guarantor, but that his status was that of an accommodation endorser. This depended upon the nature of the transaction entered into by the parties, and there was evidence pro and con. As there had been no presentation of the note and no notice of dishonor given to La Grotta, this defense, if the jury credited La Grotta’s version of the transaction, would have relieved La Grot-ta of any liability on the note, and the trial judge so charged the jury. He also charged that if La Grotta was only an endorser any extension of time without La Grotta’s consent would relieve him of liability on the note.

La Grotta also claimed that he thought the $11,890.63 represented only the purchase price of the cows and that he was amazed to find, in the course of the trial, that the amount specified in the agreement and in the note included an item of $1970.63, which Keresey paid to the Equitable Credit Corporation in liquidation of an obligation of Costello. But Keresey adduced evidence from which the jury might decide that La Grotta knew all about these facts and that his claim of concealment had no foundation whatever. The trial judge charged the jury that if they believed La Grotta’s version of this disputed question of fact they should credit La Grotta with the amount of $1970.63. But, as we shall see, no such credit was given, nor was any objection made to the charge on this point.

The Conditional Sale Contract called for monthly payments of $495.44, which seems to have been the exact amount of payments to Costello each month for milk delivered to the Brock-Hall Company. The first cheek was turned over to Keresey and retained by him, and, of course, reduced the amount payable on the agreement and the note. The next four checks were “refunded” by Keresey to Costello and later the whole arrange *896 ment to turn the checks over to Keresey was cancelled and Keresey agreed to let Costello deliver them instead to a bank. There were two separate factual controversies over these milk checks. La Grot-ta claimed: (1) that the arrangement for delivery of the checks to Keresey was part of the deal evidenced by the agreement and the note, that this was in effect security behind his obligation as endorser; and (2) that he knew nothing of the refunds or the cancellation of the assignment and had not agreed to them or ratified them. Keresey’s proof, however, was directly to the contrary. The trial judge left it to the jury to decide whether the original transaction included the assignment agreement, as contended by La Grotta, and instructed the jury to credit La Grotta with the amount of these milk payments by the Brock-Hall Company, “only if you find that the milk check assignment was part of the contract in suit in the beginning, and also if you fail to find that La Grotta knew of them or later ratified these payments after learning of them.” The jury evidently rejected La Grotta’s version of this phase of the case, as no such deduction was made.

Much testimony was offered by each side on the disputed issues over the cows. The parties could not even agree on the number of cows repossessed by Keresey, who said he took back eleven cows, sold them for $135 apiece and credited La Grotta with the proceeds, $1485. But at one place in the record Keresey said he repossessed twelve cows. Costello testified that the number was sixteen. The trial judge left this issue to the jury, who evidently believed Costello on this point, as the verdict was for Keresey in the full amount claimed by him, less $675, which is five times $135.

But La Grotta had some additional claims. He said Keresey should have taken the cows back sooner, that Keresey failed to use reasonable diligence to get a fair price for the cows when he sold them, and that he failed to protect the livestock and safeguard their value. All these issues were submitted to the jury with appropriate instructions and the jury seems to have rejected La Grotta’s version in toto.

We now return to the principal issue litigated, which was the intention of the parties in signing the agreement and note. The apparent tenor of the note was that La Grotta was signing as maker, and the trial judge, therefore, properly charged the jury that La Grotta was presumed to have in fact intended to obligate himself as maker and had the burden of proving his claim that he had signed in some other capacity. He was correct, too, in charging that the intention of the parties also determined in what capacity La Grotta had signed the agreement. No objection was noted to these instructions.

This brings us to the specific contentions made by La Grotta on this appeal, the common core of which is his claim that he signed as surety.

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234 F.2d 894, 1956 U.S. App. LEXIS 4407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-j-keresey-plaintiff-appellee-appellant-v-new-milford-tractor-ca2-1956.