McDonald v. Mulkey

231 P. 662, 32 Wyo. 144
CourtWyoming Supreme Court
DecidedJuly 6, 1926
Docket1091
StatusPublished
Cited by14 cases

This text of 231 P. 662 (McDonald v. Mulkey) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDonald v. Mulkey, 231 P. 662, 32 Wyo. 144 (Wyo. 1926).

Opinion

*150 KiMball, Justice.

This is a direct appeal from a judgment entered on a directed verdict. The parties will be called plaintiff and defendant as in the court below.

The defendant (appellant) was sued as the maker of three promissory notes, each for $1250, payable to S. L. Vance, one dated July 31, 1919, due in one year, the others dated August 16, 1919, due in ten months. The notes are endorsed in blank by the payee. The action was commenced *151 August 19, 1920, the plaintiff in his petition alleging, among other things, that he was then “the bona fide owner and holder in due course” of said notes, and the “purchaser thereof for value and before maturity.” The defendant answered that he was induced to make the notes by the fraud of the payee. The answer denied that the notes “were endorsed by said S. L. Vance to the plaintiff;” that they “were negotiated for value prior to the maturity thereof;” that “plaintiff is now or ever has been a bona fide owner and holder in due course” of said notes; and that “plaintiff was the purchaser thereof for value and before maturity. ’ ’ The answer alleges further that the notes were placed for collection with the Cheyenne State Bank of which the plaintiff is the vice-president and manager, and that at the time the bank received the notes the plaintiff knew of the fraud practiced by Vance in obtaining them. The answer also recited that prior to the maturity of the notes the defendant was notified by the bank that it was the owner and holder thereof; that defendant then inquired about the notes at the bank and was again informed that the bank was the owner and holder of them, “when as a matter of fact said notes were merely left there for collection, and said Cheyenne- State Bank and the plaintiff herein are merely the agents for a third party; that plaintiff is not the real party in interest and that therefore under the laws of this state, he is not entitled to maintain or carry on the suit; that said plaintiff never paid any consideration for said notes, or had any pecuniary interest therein. ’ ’

The reply denied the fraud. It denied, also, that the notes had been placed with the Cheyenne State Bank for collection, and alleged facts to show that the bank became a holder in due course of the notes and continued to own and hold them until on or about September 7, 1920 when it sold and transferred them to the plaintiff. This, it would seem, was inconsistent with the allegation of the petition that the plaintiff was the holder of the notes on August 19, 1920 when he commenced the action. This defect in the *152 plaintiff’s pleadings was not called to the attention of the court before the trial, and, apparently, passed unnoticed until the last stages of the trial as will presently be stated.

At the trial the plaintiff in his ease in chief proved the genuineness of the signature of the payee on the back of each of the notes, introduced the notes in evidence, and testified that he “acquired them from the Cheyenne State Bank September 7, 1920.” When the plaintiff rested his case in chief this was all the evidence as to the plaintiff’s title and possession, and no question was then raised in regard to his failure to prove that he was the holder of the notes at the time of the commencement of the action.

After the defendant had introduced his evidence, the plaintiff moved for a directed verdict, and the judge announced that the motion would be sustained on the ground that the evidence on the issue of fraud was insufficient to warrant the submission of the issue to the jury.

Thereupon, the defendant moved that a verdict in his favor be directed. This motion was predicated on four grounds, which may be shortly stated as follows: (1) because of material variance between the allegations of the petition and the proof, the petition alleging that the plaintiff purchased the notes before maturity, and the proof showing that he did not purchase or become the owner until after maturity; (2) because the purchase of the notes by the Cheyenne State Bank was in contravention of the laws of the state, and therefore null and void; (3) because under the laws of the state the bank had no power or authority to sell or dispose of the notes to the plaintiff, and any attempt to do so was ultra vires and void, and (4) because the uncontradicted evidence showed that the plaintiff had no right, title or interest in- the notes until September 7, 1920, after the commencement of the action.

To cure the defect thus suggested by the fourth ground of the defendant’s motion the plaintiff asked leave to reopen his case for the purpose of proving that the notes were in the -possession of the plaintiff at the time the- action was *153 brought. In objecting to the granting of this request the defendant for the first time called attention to the fact that the reply alleged that the bank was the holder of the notes at the time of the commencement of the action.

The plaintiff’s request for leave to re-open the case was granted, and testimony was then given by the plaintiff himself, one of his attorneys and the cashier of the Cheyenne State Bank from which, we think, it clearly appeared that the plaintiff was entitled to sue as the bearer or holder of the notes under the Negotiable Instruments Law, as explained in Hay v. Hudson (Wyo) 224 Pac. 840. We deem it unnecessary to recite the testimony given on this point after the re-opening of the case. It may not have been sufficient to show that the plaintiff was the owner of the notes at the time of commencement of the action, but we •think it did conclusively show that he was then in possession with the right to sue with the consent of the owner.

After: the taking of this testimony, plaintiff’¡3 counsel announced that ‘ the plaintiff now amends the reply * * * by substituting the words 10th day of August for the words 7th day of September.” Bach party renewed his motion for a directed verdict, and the court granted the plaintiff’s motion and denied the defendant’s. In the course of the colloquy between the judge and counsel, the judge said: “Let it appear in the record, prior to directing the verdict, that the court permitted the re-opening of the case for additional evidence on the part of the plaintiff, and also permitted the amending of the pleadings to conform to -the proof. ’ ’ No actual change was made in the reply, but that omission is not material. If the amendment might have been made, the judgment will not be disturbed because of failure to change the form of the pleading. Kuhn v. McKay, 7 Wyo. 42; 49 Pac. 473, 51 Pac. 205; Chicago, B. & Q. R. Co. v. Pollock, 16 Wyo. 321, 93 Pac. 847.

The defendant earnestly contends that the court should have directed a verdict in his favor on the ground that the plaintiff was not the real party in interest, and should not *154 have permitted the plaintiff to re-open bis case and amend bis reply. While it is conceded that the granting of leave to re-open a case for the purpose of taking further’ evidence and the granting of permission to amend pleadings are matters usually left to the discretion of the trial court, it is insisted that in the circumstances of this case the discretion has been abused.

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Bluebook (online)
231 P. 662, 32 Wyo. 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonald-v-mulkey-wyo-1926.