McCormick v. Badham

85 So. 101, 85 So. 401, 204 Ala. 2, 1919 Ala. LEXIS 3
CourtSupreme Court of Alabama
DecidedOctober 23, 1919
Docket6 Div. 845.
StatusPublished
Cited by29 cases

This text of 85 So. 101 (McCormick v. Badham) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCormick v. Badham, 85 So. 101, 85 So. 401, 204 Ala. 2, 1919 Ala. LEXIS 3 (Ala. 1919).

Opinions

THOMAS, J.

This is the third appeal in this case. The several trials were had before different judges.

On the first appeal the ruling of the trial court was sustained on demurrer to certain counts of the complaint; the written contract, on which the suit was sought to be maintained, was construed, and reversal was had for the giving of the general affirmative charge for defendant. McCormick v. Badham, 191 Ala. 339, 347, 67 South. 609.

The verdict for plaintiff, on the second trial, was set aside on motion for a new trial; and that judgment was affirmed. The Chief Justice declared that, although the seller agreed to sell the stock of the plaintiff buyer to a third person and to account for the stipulated price obtained, and later made a contract with such third person rescinding the contract, in the absence of a showing as to what the seller would have realized by forcing the third person to perform, or that the amount stipulated was realized by the sale made, plaintiff could only recover the market value of the stock. McCormick v. Badham, 201 Ala. 210, 77 South. 736.

The present appeal is from a judgment for defendant. In plaintiff’s motion for a new trial it is averred, among other grounds, that the jury improperly carried with them to the jury room three papers which had not been introduced in evidence, which said papers had a bearing on the issues in the case and were considered by the jury in arriving at a verdict. The. motion was overruled and due exception reserved.

[1, 2] On the first appeal the sufficiency of the twelfth count was not passed upon, since demurrer thereto had been overruled. McCormick v. Badham, 191 Ala. 339, 346 (5), 67 South. 609. In counts 13 and 14 plaintiff had the benefit of the issue of fact sought to be presented by the twelfth count. That “the defendant agreed with the plaintiff to account to the plaintiff or to settle with 1he plaintiff for the price of the said stock,” without other essential averment, did not clearly disclose to what the words “price of the said stock” referred; that is, whether reference was made to the market valu§ of the stock or the amount for which it was purchased by plaintiff, or contracted to be sold to a third party. The word “price,” as it occurs in the twelfth count, is made to refer, or may be referred, to two different sums, viz., defendant agreed to sell plaintiff 45 shares of the stock of said company at the par value and at the price of $100 each; and defendant agreed to sell the stock to V. C. Badham at the price of $200 a share. Testing the count by its weakest averment, in the light of this varying use of the word “price,” it was subject to challenge by demurrer. This indefiniteness was remedied in count 13 by the averment that “defendant agreed with the plaintiff to account to the plaintiff or to settle with the plaintiff for the price at which the said stock was sold to the said V. C. Badham”; and in count 14 *8 by the averment that “the defendant agreed with the plaintiff to account to the plaintiff or to settle with the plaintiff for the said stock, meaning the value thereof, not exceeding the price at which it was sold.” It is evident that the issue of fact sought to be presented under count 12 was afforded plaintiff in counts 13 and 14, and that no evidence could have been introduced under count 12 which was not introduced under the ]two latter counts.

[3, 4] There was a consideration imported by the written contract. B. R. L. & P. Co. v. Littleton, 201 Ala. 141, 77 South. 565, 572-574; Prudential Casualty Co. v. Kerr, 80 South. 97, 99; 1 Georgia Home Ins. Co. v. Boykin, 137 Ala. 350, 367, 34 South. 1012. It was not necessary that plaintiff prove the true consideration for that contract. The surrender of rights, indicated on former appeal, was said to constitute the consideration for the alleged new parol agreement between the plaintiff and defendant. McCormick v. Badham, 191 Ala. 339, 346 (6), 67 South. 609. This suit is founded on said new agreement between said parties. It follows that the question, “What was the consideration of this contract?” (the written contract of July 7, 1904) did not call for evidence material to a controverted issue of fact as presented in counts .13 and 14.

[5] No error was committed in not permitting plaintiff to introduce in evidence the letter (of January 26, 1907) from defendant to plaintiff. It contained no statement bearing on the issues made by the pleading. The gravamen of the complaint was that defendant, by agreement with plaintiff, sold or agreed to sell stock of the Dorchester Lumber Company to defendant’s brother, Y. C. Badham, and to include in the sale the stock in which plaintiff had an interest, and that defendant would account to plaintiff for the price at which the said stock was sold to the said Y. C. Badham. If plaintiff had any right of action, it was based on this completed transaction with V. C. Badham, and not on^the rights plaintiff would have had if defendant had otherwise contracted for the sale of the stock. That is to say, it was immaterial what negotiations defendant had with other persons for the sale of the stock. Eor like reason, there was no error in refusing to allow plaintiff to testify of his conversation with H. L. Badham at the mill relative to its sale through one Tucker in Charleston. Nor was that matter made relevant by the statement of plaintiff’s counsel that defendant (at some other time) went to Charleston for the purpose of negotiating a sale of the stock through Tucker to Lindsay at $200 a share. The irrelevancy of the foregoing proposed testimony is further shown by the fact that, at the time of the alleged conversation sought to be given in evidence, no dividends had been declared on shares of stock in said lumber company, and no payment had been made by plaintiff to defendant for the stock in question. The indebtedness of the lumber company had not only not been canceled, but had largely increased from the time when McCormick began his employment with that company.

[6, 7] The measure of the value of plaintiff’s “contingent, inchoate, contractual right to impose upon Badham the obligation to sell the stock to him” (McCormick v. Badham, 191 Ala. 346 [6], 67 South. 609) was not affected by the fact, if it be a fact, that the stock could have been disposed of to other parties than V. C. Badham for the same or a different price, at other times. Of this, defendant’s counsel aptly observes:

“It is one thing to say that the surrender of such rights (secured by the written contract) would afford consideration for a new undertaidng (McCormick v. Badham, 201 Ala. 210, 77 South. 738), * * * and say, on the other hand, that they had an actual monetary value capable of measurement” at the time in question.

This, by way of plaintiff’s effort to introduce evidence tending to show the reasonable market value of the stock at other times than that when H. L. Badham had completed the sale of said stock to V. C. Badham. However, the record shows that plaintiff was permitted to testify that its fair market val-‘ ue was easily $200 a share. If the court had been in error in excluding the evidence in question, plaintiff could not ask more than that he testify generally as to what was the fair market value of the stock. This he was permitted to do.

The letter of H. L. Badham, dated Birmingham, Ala., 3/5/07, to plaintiff was not material.

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Bluebook (online)
85 So. 101, 85 So. 401, 204 Ala. 2, 1919 Ala. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccormick-v-badham-ala-1919.