Mackel v. Bartlett

82 P. 795, 33 Mont. 123, 1905 Mont. LEXIS 99
CourtMontana Supreme Court
DecidedOctober 21, 1905
DocketNo. 2,155
StatusPublished
Cited by1 cases

This text of 82 P. 795 (Mackel v. Bartlett) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mackel v. Bartlett, 82 P. 795, 33 Mont. 123, 1905 Mont. LEXIS 99 (Mo. 1905).

Opinion

MB. JUSTICE HOLLOWAY

delivered the opinion of the court.

This is an action brought by a trustee in bankruptcy to recover the amount of an alleged preference.

The complaint alleges that prior to February 6, 1899, Frederick A. Bartlett was indebted to the First National Bank of Butte in the sum of $1,530, which indebtedness was evidenced by a promissory note theretofore executed by the said Frederick A. Bartlett, with Henry B. Bartlett, this defendant, as surety, and delivered to the bank; that on February 6, 1899, this note was past due; that Frederick A. Bartlett was then, and for a long time prior thereto had been, insol[126]*126■vent and then contemplated filing a petition in bankruptcy; that Henry R. Bartlett was then solvent and able to respond in the full amount of said indebtedness to the bank; that on the said 6th day of February, Frederick A. Bartlett, at the suggestion and instigation of Henry R. Bartlett, paid said indebtedness to the bank, and that such payment was made by Henry R. Bartlett, acting as the agent of Frederick A. Bartlett. It is then alleged that at the time of making such payment Henry R. Bartlett had reason to believe and did believe that Frederick A. Bartlett was, and for a long time prior thereto had been, insolvent; that such payment was made with the intention on the part of Frederick A. Bartlett to prefer Henry R. Bartlett over his other creditors, and that the effect of such payment was to discharge Henry R. Bartlett of his liability to the bank; that on February 8, 1899, Frederick A. Bartlett filed his petition in bankruptcy in the United States district court and was by that court adjudged a bankrupt, and this plaintiff selected as trustee and duly qualified and entered upon the discharge of his duties as such. The complaint alleges a demand upon the defendant to pay over to the trustee the sum so paid to the bank and the defendant’s refusal to comply with that demand.

To this complaint the defendant interposed a general and special demurrer, which was overruled, and defendant then answered, admitting the corporate existence of the First National Bank, the indebtedness of Frederick A. Bartlett to the bank, and the fact that defendant was a surety on the note evidencing such indebtedness; that on the 6th day of February, 1899, such note was past due; that defendant was then solvent and had property out of which the bank could have forced the collection of said indebtedness; that Frederick A. Bartlett paid said bank through the defendant as his agent; and that this defendant suggested to Frederick A. Bartlett to make such payment. Defendant also admits that demand was made upon him to refund to the trustee the money so paid over to the bank, and that he refused to. comply with the demand. The [127]*127answer denies all the other material allegations of the complaint.

Upon the trial the plaintiff offered evidence tending to sustain the allegations of his complaint with reference to the adjudication of Frederick A. Bartlett as a bankrupt, plaintiff’s appointment as trustee, the insolvency of Frederick A. Bartlett, and some evidence tending to show knowledge on the part of Henry R. Bartlett of Frederick A. Bartlett’s insolvency at the time of the payment of the note to the bank, and upon this issue also offered in evidence the testimony of one Vernon J. Barlow, given by way of a deposition, which deposition, omitting the questions, is as follows: “My name is Vernon J. Barlow. I am a lawyer by profession, and I reside at Butte, Montana, and have, since November, 1897. I have known Henry R. Bartlett since December, 1897. I am acquainted with Frederick A. Bartlett, and have known him since the summer of 1898. He was introduced to me by Henry R. Bartlett in my office some time during the summer of 1898. I think they are brothers. Henry R. Bartlett and Fred. A. Bartlett came to my office together. Henry R. Bartlett stated that Fred. A. Bartlett had informed him that his business was declining, and that he was not making enough money to pay his clerk or his rent, and that he had decided to make an assignment, and that he wanted to see an attorney, and that he (Henry) had recommended me, and came with him to introduce him. I do not remember that Henry R. Bartlett was to be the preferred creditor. It is my recollection that he was an indorser for Fred. A. Bartlett at the First National Bank for about fifteen hundred dollars ($1,500.00). I know of nothing more that is material to the issue in the above-named cause.” Cross-examination: “I had but one conversation with Frederick A. Bartlett and Henry R. Bartlett, and they called upon me for the purpose of obtaining my services as an attorney at law, and all the information gained from them was in the capacity of an attorney.” This offer was objected to on the ground that the witness Barlow was an attorney and as sueh was consulted by Frederick A. and Henry R. [128]*128Bartlett, and that the information gained was privileged. This objection was sustained, and the evidence excluded.

At the close of plaintiff’s ease the defendant moved for a nonsuit, upon the grounds that the plaintiff had failed to prove the insolvency of Frederick A. Bartlett at the time of the payment to the bank; that plaintiff had failed to show that defendant, Henry it. Bartlett, had any knowledge, or any reason to believe, that Frederick A. Bartlett was insolvent, or that by the payment of said indebtedness Frederick A. Bartlett intended to prefer Henry R. Bartlett over his other creditors, or that such payment was made in contemplation of bankruptcy, and “that the plaintiff had failed to make out a case.” This motion was sustained and a judgment in favor of defendant for costs rendered. From an order overruling his motion for a new trial the plaintiff appeals. The errors assigned are: 1. The exclusion of the testimony of Vernon J. Barlow; 2. The granting of the motion for nonsuit; and, 3. The denial of plaintiff’s motion for a new trial.

The last ground of the motion for nonsuit, namely, “that the plaintiff has failed to make out a case,” was too general to be considered by the court below (Wright v. Fire Ins. Co., 12 Mont. 474, 31 Pac. 87, 19 L. R. A. 211; Jacobs Sultan Co. v. Union Mercantile Co., 17 Mont. 61, 42 Pac. 109; 1 Spelling on New Trial and Appellate Practice, 346, and cases cited), and we must presume that the court made the order with reference to other grounds mentioned.

There was some evidence introduced tending to show the insolvency of Frederick A. Bartlett at the time of the payment cf the note, and, if the testimony of the witness Barlow had been admitted, it would have tended further to show such insolvency and knowledge of such fact by the defendant, Henry R. Bartlett; and, if the court committed error in excluding that evidence, the order denying the plaintiff a new trial must be reversed, for with that evidence admitted there was sufficient to go to the jury.

It is apparent that the court proceeded upon the theory that the deposition of Barlow showed upon its face that the in[129]*129formation which he received from Henry R. Bartlett, respecting Frederick A. Bartlett’s financial condition a few months prior to the date of the payment to the bank, was received by him while acting as attorney for Henry R. Bartlett, and therefore the communication of such information was privileged, under subdivision 2 of section 3163 of the Code of Civil Procedure. In this we think the trial court was in error.

Section 3163, subdivision 2, reads as follows: “Sec. 3163.

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Related

Mackel v. Bartlett
91 P. 1064 (Montana Supreme Court, 1907)

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Bluebook (online)
82 P. 795, 33 Mont. 123, 1905 Mont. LEXIS 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mackel-v-bartlett-mont-1905.