Lombard v. Mayberry

24 Neb. 674
CourtNebraska Supreme Court
DecidedJuly 15, 1888
StatusPublished
Cited by14 cases

This text of 24 Neb. 674 (Lombard v. Mayberry) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lombard v. Mayberry, 24 Neb. 674 (Neb. 1888).

Opinion

Cobb, J

The plaintiff in error brought this action in the district court of Johnson county, alleging that on May 26, 1884, the defendants in error, Wallace S. Smith, as principal, and Phineas Jones, Alraon Eeed, E. W. Smith, Moses Eoberts, and Charles N. Mayberry, as sureties, executed their bond to the plaintiff in $5,000 guaranteeing the payment at maturity of the several notes and negotiable securities (forty-one in number) sold by Wallace S. Smith to the plaintiff, an'd guaranteed to be paid to the plaintiff at maturity at his office in Lincoln, Nebraska; and if not paid at maturity by the makers, or if received by said Smith, and not paid to the plaintiff, or if in the hands ■of said Smith, at the date of said bond, and not paid to the plaintiff, the principal and sureties were to pay the same within thirty days from the date of the bond; and if mot paid to said Smith, nor yet due, to pay the said notes and negotiable securities within thirty days from maturity respectively. It is admitted that said Smith, during the year commencing June 1, 1883, had been engaged, as a business, in taking, buying, and selling to the plaintiff [678]*678notes and negotiable securities," and had, at the date of the bond, sold to him an amount of $9,750.12, l'emaining unpaid, and to which the bond was appliable as security; that it was security for the notes negotiated by said Smith,, and also to give him credit, to close up his last year’s-business, and to better enable him to make sale of such securities.

It is alleged that said Smith, as principal, and PhineasJones, Almeron Reed, James H. Seay, and Charles N. Mayberry, as sureties had, on April 3, 1883, executed a prior bond to plaintiff in $5,000, guaranteeing all the-notes and negotiable securities sold by said Smith to the-plaintiff prior to June 1, 1884, which bond was subsequently canceled in consideration of the second bond, on which this action is brought, and which is limited to the-securities then held, or those that might be taken in lieu of other securities, necessary to close up the business prior to June 1, 1885.

It is alleged that, after the execution of the second bond, on which this suit is brought, said Smith proceeded in the-closing up of his business, until his sureties requested the-same to be stopped; that on the execution of the bond the plaintiff relied upon it as a guaranty of the securities, and the ability of the makers; by which the sums then in the hands of said Smith and not paid over to the plaintiff were allowed to run the thirty days mentioned in the bond..

It is alleged that, at the date of the bond, and of the aggregate of the securities so purchased and held by the plaintiff, $965.94 was then in the hands of said Smith, of which $600, and no more, was subsequently paid; that of the sum of $9,750.12, the aggregate of the securities held by the plaintiff at the date of said bond, all had been due-then more than thirty days, on which not more than $3,200 had been paid to the plaintiff, leaving $5,755.94,. of which more than $5,000 was past due, for more than •thirty days at the bringing of this'suit. A description. [679]*679of the notes and securities is set forth, being forty-one in number, as well as those collected by said Smith and not paid over to the plaintiff, on which the balance due is $365.94.

It is further alleged that the sureties on said bond received from said Smith money and property, as indemnity, amounting to $2,200, which they still hold as security ; and that there is now due the plaintiff, on said notes and negotiable securities, $5,755.94 and interest, at the commencement of this suit $275, for which judgment is-asked against defendants Reed, Roberts, and Mayberry in the sum of $5,000, with interest from July 12, 1884, and costs.

The defendants, Reed, Roberts, and Mayberry, answered and denied the allegations that they executed the bonds dated May 26, 1884, and April 3, 1883 ; that the promissory notes were executed by the makers, or that they were negotiated by said Smith ; that said Smith ever collected or had in his hands any money that should have been paid to said plaintiff; and they aver that if the defendant, Mayberry, signed the bond sued on, his signature was obtained by the fraudulent representations of the plaintiff, or his agents, that the signatures to the bond above said Mayberry's were genuine, whereas they were forged, and that said Smith at the date of the bond of May 26, 1884, was a defaulter, and had embezzled money and property of the plaintiff, which the plaintiff knew, but concealed the fact, in order to induce the defendant, Mayberry, to sign said bond, which was without consideration to said Smith, or to the defendant, Mayberry.

The plaintiff joined the issues, denying each allegation of the defendant's answer. There was a trial to a jury and a verdict for defendants.

The court in its discretion submitted three special findings to the jury :

I. Did defendant Almeron Reed sign the bond sued on ?

[680]*680II. Did defendant Moses Roberts sign the bond sued on?

III. When defendant Mayberry signed the bond in suit, did he believe the names of defendants Reed and Roberts to be their genuine signatures to the bond ?

The jury found the first and second in the negative and the third in the affirmative.

The plaintiff filed a motion for a new trial as to May-berry, which was overruled, and judgment rendered on the verdict, to which exceptions were taken, and errors assigned,' as follows:

1. The verdict is contrary to the evidence.

2. The verdict is contrary to law.

3. For errors of law occurring at the trial.

4. For errors in sustaining defendants’ objections to plaintiff’s evidence'.

5. For errors in sustaining defendants’ objections to each of the notes offered in evidence by plaintiff, except the Greenfield and Cavin notes.

6. For error in refusing to exclude that portion of witness Davidson’s cross-examination as to the signatures of the Minlder notes.

7. For error in overruling plaintiff’s objections to improper evidence of defendants.

8. For refusing instructions of plaintiff, Nos. 5 and 6.

9. For refusing and changing instruction of plaintiff, No. 4,

10. In giving instruction of defendants, No. 1.

11. In giving instruction of defendants, No. 2.

12. In giving instruction of defendants, No. 3.

13. In giving each of the court’s own instructions.

14. In sustaining the defendant’s motion to strike out witness Smith’s deposition as to the notes identified therein.

15. For indiscretion preventing a fair trial.

16. In submitting special finding No. 3.

The plaintiff’s motion for a new trial being overruled [681]*681and a judgment rendered on the verdict, the plaintiff brings the cause to this court on error. His assignments ■of error being substantially the same as the causes assigned in his motion for a new trial, it is deemed unnecessary to set them forth.

The issues to be tried were the validity of the bond, and the liability of the sureties under it.

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Bluebook (online)
24 Neb. 674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lombard-v-mayberry-neb-1888.