McCloy v. Cox

39 N.E. 901, 12 Ind. App. 27, 1895 Ind. App. LEXIS 54
CourtIndiana Court of Appeals
DecidedFebruary 19, 1895
DocketNo. 1,410
StatusPublished

This text of 39 N.E. 901 (McCloy v. Cox) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCloy v. Cox, 39 N.E. 901, 12 Ind. App. 27, 1895 Ind. App. LEXIS 54 (Ind. Ct. App. 1895).

Opinion

Reinhard, J.

The appellant brought this action to recover a judgment against the appellee Cox for money paid out for his benefit by the appellant, and against the other appellees to restrain them from disposing of a certain note held by them as collateral security for a debt owing to them from said Cox. The note was executed by the appellant to Cox, and was for the sum of $6,000. Originally, the complaint was in one paragraph, but afterwards a second paragraph was added setting forth the facts in detail and asking a judgment for plaintiff below against the appellee Cox.

After the filing of the first paragraph of the complaint, and before the filing of the second, the appellees filed separate motions to dissolve the restraining order which [28]*28had been previously issued, and this motion was sustained as to all the appellees except Cox, and overruled as to him. A demurrer to the first paragraph of the complaint was overruled and an exception taken, and Cox filed his separate answer and cross-complaint. To the cross-complaint the appellant says he filed a demurrer which was overruled, but as the record does not show that any such demurrer was filed, we can not consider it. An answer of denial filed to the cross-complaint closed the issues.

The cause was submitted for trial to the court and there was a finding against appellant and in favor of the appellee Cox for $1,000 on his cross-complaint.

Appellant filed a motion for a new trial pending which the court modified its finding reducing the same to $500. The court then overruled the motion for a new trial and rendered judgment in favor of Cox for $500.

The appellant has assigned three specifications of error, viz.:

1. That the cross-complaint of appellee Cox does not state facts sufficient to constitute a cause of action.

2. That the court erred in overruling the appellant’s demurrer to the answer of the appellee Cox.

3. That the court erred in overruling the appellant’s motion for a new trial.

As there is no record of the filing of any demurrer to the answer or cross-complaint, the second specification of error must be disregarded, and the only attack made upon the cross-complaint must be held to be that in the first assignment.

The substance of the averments of the first paragraph of complaint is that Cox is indebted to appellant in the sum of $3,000 for money had and received and paid and expended for his use and benefit at his (Cox’s) special [29]*29instance and request, which is due and unpaid; that on the 8th day of July, 1892, the appellant executed his note, thereby promising to pay said appellee Oox, or order, $6,000, on or before eighteen months after date thereof, with interest at 8 per cent, per annum after maturity until paid, which note was negotiable and payable at the Citizens’ Exchange Bank of Elwood, Indiana; that appellee Cox afterwards, on July 12, 1892, assigned said note to his codefendants by the name and style of Picken <fe Kemp, as collateral security for the payment of $3,000 owing to them by said Cox, and.that said Picken & Kemp, by said firm name, now hold said note by assignment, as aforesaid, for the sum of $3,000; that Cox is wholly insolvent except as to said note; that Cox threatens, and is about, to assign and transfer said note to other parties before the maturity thereof, and thereby defeat the plaintiff in the collection of the judgment sought to be recovered in this action, etc.

In the second paragraph of complaint it is averred that on the 13th day of May, 1892, the plaintiff and defendant Cox entered into a contract, partly oral and partly in writing, a copy of the written part being filed herewith, by the terms of the oral part of which they agreed upon the location of a factory for the manufacture of lamp chimneys at a place 3,800 feet distant from a point on the Pittsburgh, Cincinnati, Chicago and St. Louis Railroad, where the switch or turnout mentioned in the written part of said contract should leave the main track of said railroad; and that it was further agreed orally that said Cox should procure the said railroad company to build said switch or turnout to and upon the grounds upon which said factory was to be located, and that if any amount had to be paid to said railroad company to procure and induce it to build said switch or turnout to and upon said grounds upon which said factory was [30]*30to be located that said Cox was to pay to said company any such amount as had to be thus paid; that after-wards on the 8th day of July, 1892, said Cox informed the appellant that he had perfected arrangements with said company by which it would build said switch or turnout as agreed upon between appellant and Cox to any point upon the grounds where the factory was to be located, and which track was to be built without any cost to the appellant, and in all things pursuant to said contract; that thereupon, on said day, the appellant, relying on said Cox’s statement, and believing it to be true, and that said track, switch or turnout would be so built promptly and without any further cost to him, the appellant then and there paid the said Cox $4,000 in cash and executed his note to him for $6,000, due eighteen months thereafter, and also executed to said Cox a mortgage on said real estate to secure the payment of the note, and then and there received from the said Cox a deed of conveyance by general warranty to and for said real estate; that thereupon the appellant let bis contract for building said factory on said real estate at the place at which he was to build the same according to their agreement aforesaid; that after having let said contract he went to the said railroad company and asked and urged them to immediately build said switch or turnout to said factory site so that he might get his material there and erect his factory without delay; that he then learned for the first time that said Cox had agreed with said railroad company to build said switch or turnout, but by the terms of said agreement the said railroad company was to build 1,000 feet of said switch at their own expense, and the said Cox was to pay the sum of $1 per foot for the remaining 2,800 feet thereof, and that they were ready to build said 'switch or turnout as soon as said Cox would pay or secure to said company the said $2,800; [31]*31that appellant then went to said Oox and requested him to make such arrangements with said company about the payment of said money as would insure the early completion of said switch; that said Oox then informed appellant that he did not intend to and would not pay said $2,800, or any part thereof, and that appellant would have to pay that amount or make some arrangements with the railroad company about building that part of said switch or turnout; and appellant avers that before he could get said switch built he had to pay the said railroad company the said sum of $2,800. And he further avers that the representation and statement and contract made between said Cox and said railroad company, by which the former was to pay said company $2,800 for the construction of said switch, and the further statement afterwards, to wit: on the 8th day of July, 1892, made by said Cox to the appellant, that he had procured said company to build said switch to said factory site, were all and singular made with the false and fraudulent intention to deceive, cheat and defraud this appellant; and that appellant was so deceived by said Cox’s statements, and relying and acting upon them, he executed his note and mortgage to pay the money aforesaid to said Cox.

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Bluebook (online)
39 N.E. 901, 12 Ind. App. 27, 1895 Ind. App. LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccloy-v-cox-indctapp-1895.