Kennedy v. First State Bank of Wall

149 N.W. 168, 34 S.D. 457, 1914 S.D. LEXIS 151
CourtSouth Dakota Supreme Court
DecidedOctober 26, 1914
StatusPublished
Cited by6 cases

This text of 149 N.W. 168 (Kennedy v. First State Bank of Wall) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kennedy v. First State Bank of Wall, 149 N.W. 168, 34 S.D. 457, 1914 S.D. LEXIS 151 (S.D. 1914).

Opinions

WHITING, J.

The following facts are undisputed: Plaintiff was an attorney at law engaged in the real estate business at Wall, S. D., the home of defendant corporation. In the fall of 1911 plaintiff negotiated a trade of some land in South Dakota for an automobile and a house and lot situated at Bloomfield, Neb. The South Dakota land was owned by one Collins, who1 was to receive for his land $500. Defendant entered into written contracts for the trade with the owner of the house and lot and the automobile, in which contracts plaintiff appeared as the party with whom the exchange was to be made. At the time the exchange was consummated an officer of defendant bank was present, and the bank paid the $500 to Collins, taking from plaintiff a demand note for the $500. The deed to the house and lot and the bill of sale of the .auto ran to plaintiff. Plaintiff thereafter expended certain moneys in the repair of the auto and the repair and insurance of the building; the policy of insurance ran to him as owner. As a part of the trade the plaintiff gave 'back to the former owner a mortgage upon the house and lot. Plaintiff had 'on deposit with defendant some $200, and, in the month of November, 1911, defendant applied and credited such deposit upon the $500 note. Plaintiff after-wards drew upon defendant bank, and his check was received and honored, thus showing, on defendant’s books, an overdraft of plaintiff’s account. February 2, 1912, an officer of defendant bank visited Bloomfield, turned over to plaintiff all his canceled checks, and asked for and procured from plaintiff a note in favor of defendant in the amount of, and to cover, such apparent overdraft. At the same time, plaintiff gave to defendant a bill of sale of the [459]*459auto and a. deed of the house and lot. The bill of sale was conditioned that, upon payment of a note for $500 given by plaintiff 'to defendant, if paid before April 1, 1912, such bill of sale should be null and void. Upon receipt of the deed, defendant gave back to plaintiff a contract in writing whereby defendant agreed to re-convey the land upon the payment of $400 by April 1, 1912, which $400 confessedly referred to the balance claimed to be represented by the $500 note and the note for overdraft. The automobile remained in the possession of plaintiff; no payments were made upon said note; and plaintiff, in May, 1912, delivered the automobile to defendant. The automobile and the house and lot were after-wards disposed of by defendant corporation, and the moneys received therefrom applied by it upon the. $500 note and other indebtedness which it claimed to hold against plaintiff.

Plaintiff brought this action claiming that the above-mentioned exchange of property negotiated by him was negotiated by him as the agent of defendant; that, though the title to the property traded for was taken in his name, yet the transaction was, in truth, for and in behalf of defendant, which was at all times the owner of such property. Plaintiff sought to recover: first, the amount of his deposit which the bank had applied upon the $500 note; second, a commission of $75, alleged to be the amount which defendant agreed to pay plaintiff for negotiating the trade; third, moneys which he had paid out for the repair of the auto- and house, storage -of the auto, insurance of the house, etc.; fourth, moneys claimed to have been given to the bank in connection with the closing of the trade.

It was plaintiff’s contention that it was at the instance and request of defendant that he negotiated this trade; that he acted, in everything he did, for the defendant; that it was ait defendant’s instance and request that the title to the Bloomfield property was taken, in his name; that the note of $500 was given because defendant desired the matter to appear as a loan of $500 so that its bank books would appear' better upon examination by the bank examiner, as the note could be used in place of -cash; that, when he gave the note for the overdraft, he contended that he did not owe the bank anything, but that the officer to whom he gave such note assured him that this note as well as the conditional bill of sale [460]*460.and the mortgage-deed, were wanted to show the bank examiner, and that he would meet him at Wall and make a final settlement.

It was defendant’s contention that the transaction was in all respects what, upon its face, it purported to be — one wherein the bank had no interest whatsoever, except inasmúch as it had advanced the $500 which was necessary to close the transaction; that the bank was holden for $500 to Collins upon surrender of the deed, and therefore sent its officer to Bloomfield in charge of the deed; that plaintiff 'did not have the $500 with which to. take up the deed, but represented that he had another trade pending whereby he expected to' at once realize from a sale of the house and lot; that, relying upon his confidence in plaintiff, who at that time was a depositor in defendant bank, and upon his promise to immediately take up the note, the bank, through its officer, surrendered Collins’ deed, took plaintiff’s note, and paid the $500 to Collins; that defendant made demand for payment of the $500 note and, the same not being paid, it applied plaintiff’s deposit thereon; that it afterwards honored plaintiff’s check as it had frequently theretofore honored his overdrafts; that it then sent one of its officers to Bloomfield to procure a settlement of the overdraft and balance due upon the $500 note; that, without making any claim that he was not owing defendant anything, and fully conceding the bank’s claims, plaintiff freely and voluntarily gave the note to- cover such overdraft, and gave the conditional bill of sale and deed (in connection with which was the contract for re-conveyance) for the purpose of securing the balance unpaid on the $500 note; that plaintiff never made any claim that he was acting for and as agent of defendant in making the trade or that he did not owe the defendant a $500 note; that plaintiff never advanced the bank any money.

The jury returned a verdict for the plaintiff upon his several causes of action; judgment was entered; motion for new trial denied ; and this appeal taken. Upon this appeal the sole question that demands our attention is the sufficiency of the evidence to support the verdict.

[1] The respective contentions .above set forth were supported by the oral testimony of the plaintiff upon the one part, and, upon the other part, by the oral testimony of the officers of the defendant bank and by the several exhibits or instruments referred to [461]*461above. There was also the testimony of a party who, as agent of plaintiff, had taken the automobile from Bloomfield to Wall and delivered the same to 'defendant. This testimony we will refer to later. If there had been no other evidence received upon the trial, there would be no question but that the verdict of the jury should be sustained, because, though plaintiff’s claims were absolutely inconsistent with what he did, yet there would be some substantial evidence to support such verdict. There were, however, several letters written by plaintiff to 'defendant which were offered and received in evidence. Plaintiff acknowledged that he wrote these letters; and, though he took the witness stand after these letters were received in evidente, he made no attempt to explain the contents thereof, which contents were entirely inconsistent with, his oral testimony and exactly in harmony with the claims of defendant.

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Bluebook (online)
149 N.W. 168, 34 S.D. 457, 1914 S.D. LEXIS 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kennedy-v-first-state-bank-of-wall-sd-1914.