Lewer v. Cornelius

129 P. 911, 72 Wash. 124, 1913 Wash. LEXIS 1418
CourtWashington Supreme Court
DecidedFebruary 13, 1913
DocketNo. 10699
StatusPublished
Cited by10 cases

This text of 129 P. 911 (Lewer v. Cornelius) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewer v. Cornelius, 129 P. 911, 72 Wash. 124, 1913 Wash. LEXIS 1418 (Wash. 1913).

Opinion

Fullerton, J.

This is an action brought by the respondent against the appellant to recover upon two promissory notes, alleged to have been made and delivered by the appellant to the Exchange National Bank of Spokane and by the bank indorsed to the respondent after maturity. The appellant, for answer to the complaint, set up facts thought to show that the notes were founded on an illegal consideration. To the answer, a general demurrer was interposed, which the trial judge sustained. The appellant thereupon refused to plead further, and judgment was entered against him according to the prayer of the complaint. The ultimate question therefore is, do the facts set forth in the answer show an illegal consideration for the notes.

The material part of the answer is as follows:

“(1) That the promissory notes referred to in paragraph one of plaintiff’s first and second causes of action, were given for an illegal consideration, and in furtherance of an illegal transaction arising as follows: The Inland Brewing and Malting Company is, and was at all times herein mentioned, a corporation organized and existing under and by virtue of the laws of the state of Washington, and authorized to do business in said state, and in the city of Spokane, is, and was at all of said times, a corporation en[126]*126gaged in the manufacturing and bottling of fermented malt liquors, and was at all of said times engaged in buying, selling and disposing of the same in quantities of five gallons or more in said city of Spokane; that at all of said times, one Charles Theis was, and now is, president of said Inland Brewing and Malting Company, and one William Huntley was at all of said times, and now is, secretary of said brewing company.
“(2) That the Exchange National Bank of Spokane mentioned as payee in the notes referred to in plaintiff’s first and second causes of action herein, is, and was at all of said times, a national bank organized and existing under and by virtue of the laws of the United States of America, and having its principal place of business at Spokane, Washington; that said William Huntley heretofore mentioned as secretary of said Inland Brewing and Malting Company is, and was at all of said times, the vice president of said Exchange National Bank, and had full knowledge of all of the transactions hereinafter mentioned between said bank, said brewing company, and this defendant.
. “(3) That on or about the 12th day of May, 1911, this defendant was, and ever since has been, engaged in the business of operating a retail liquor store or saloon at No. 8 Howard street in said city of Spokane, for the retailing of spirituous fermented malt and other intoxicating liquors; that the cost of the license for retailing such liquors, under the requirements of Ordinance No.-of the ordinances of said city of Spokane, was, at all time herein mentioned, one thousand dollars; that shortly before his license became due, defendant told said Inland Brewing and Malting Company that he did not have the ready money with which to pay said license; that said brewing company thereupon solicited from said Exchange National Bank, a loan of one thousand dollars, a portion of which is represented by the promissory notes set out in paragraph one of plaintiff’s first and second causes of action herein, with which to pay said license; that said loan was made by said bank upon the solicitation of said brewing company; that defendant at no time, nor at all, requested or solicited a loan of said bank of one thousand dollars, or of any other sum whatsoever, or at all; that said bank made said loan at the request and solicitation of said brewing company and knew the purpose for which said loan [127]*127was made, and made the same after being fully advised by said Theis and said Huntley of the use to which the money so loaned, would be put; that said bank allowed its name to be used as payee in said promissory notes, with the view to, and for the purpose of, aiding and assisting said brewing company, and did so aid and assist said brewing company in evading and circumventing the law; that in truth, and in fact, said brewing company paid said license for defendant, contrary to law; that said promissory notes were taken by said bank as a cloak under which to hide the fact that said brewing company had, contrary to law, paid the license of defendant, a retail liquor dealer; that said promissory notes when signed by defendant, were not delivered to said bank but were, by defendant, delivered to said brewing company; that the one thousand dollars, for a portion of which said two promissory notes were, by defendant, signed, was delivered by said bank to said brewing company, and not to defendant; that by reason of having so paid said license, said brewing company sought to, and did acquire, contrary to law, a financial interest in defendant’s retail liquor store.”

Prior to the hearing on the demurrer, the parties stipulated that the notes were first signed by the appellant and then delivered to the brewing and malting company named in the answer, and by that company in turn delivered to the Exchange National Bank, and by the bank endorsed after maturity to the respondent.

The statute on which the answer is based is found in the Laws of 1909, at page 182 (Rem. & Bal. Code, § 6282), and reads as follows:

“From and after the thirty-first day of December, 1909, it shall be unlawful for any person, persons, firm or corporation engaged in the manufacture, rectifying or bottling of spirituous, fermented malt or other intoxicating liquors or engaged in buying, selling or disposing of the same in quantities or five gallons or more to own all or any part of or to have any interest in the liquor, stock, fixtures or equipment of any kind whatsoever of any retail liquor store or to pay, advance or loan or become surety for the payment for any other person of the license fee required by any state law or city charter or ordinance, or to hire, engage or employ, di[128]*128rectly or indirectly, any person, persons, firm or corporation to manage, conduct, control or operate a place where intoxicating liquors are sold at retail, to wit: in less than five gallons at a time or to sign or become surety on any bond required by law of a retail liquor dealer.”

In this court the respondent makes two principal contentions against the sufficiency of the answer; namely, (1) That the facts pleaded therein do not show a violation of the statute; and (2) that the statute is unconstitutional in so far as it has relation to the facts shown in the answer. Noticing the first of these contentions, it is at once apparent that the payee named in the notes is not within the class of persons who are denied the right “to pay, advance or loan or become surety for the payment for any other person of the license fee” required as a condition precedent to engaging in the barter and sale of intoxicating or malt liquors. But while the payee itself could do any or all of these things without violating any of the prohibitions of the statute, it could not with impunity lend its name as a cloak to cover similar transactions on the part of the prohibited persons.

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Cite This Page — Counsel Stack

Bluebook (online)
129 P. 911, 72 Wash. 124, 1913 Wash. LEXIS 1418, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewer-v-cornelius-wash-1913.