Merchants & Farmers State Bank v. Ronning

222 N.W. 618, 57 N.D. 482, 1928 N.D. LEXIS 152
CourtNorth Dakota Supreme Court
DecidedDecember 20, 1928
StatusPublished

This text of 222 N.W. 618 (Merchants & Farmers State Bank v. Ronning) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merchants & Farmers State Bank v. Ronning, 222 N.W. 618, 57 N.D. 482, 1928 N.D. LEXIS 152 (N.D. 1928).

Opinion

*483 Christianson, J.

Plaintiff brought this action to recover upon a promissory note and to foreclose a chattel mortgage securing payment of such note. The complaint alleges that the plaintiff is a foreign banking corporation having its place of business at Grove City, Minnesota ; that the defendant executed and delivered a certain promissory note to the Bresden-Larson Lumber Company and at the same time executed and delivered to the said company a chattel mortgage to secure the payment of the note; that said note and chattel mortgage were thereafter in due course and before the maurity of the note, sold, transferred and assigned by the Bresden-Larson Lumber Company to the plaintiff and that the plaintiff became and now is the owner and holder thereof and that no part of the indebtedness has been paid. Judgment is demanded for the amount of the note with interest; and that the chattel mortgage be foreclosed and the property covered thereby sold and the proceeds applied in payment of thé indebtedness. The defendant interposed what is denominated an answer and counterclaim wherein the execution and delivery of the note and chattel mortgage are admitted; but it is denied that the note was given for a consideration. It is further denied that the plaintiff is a holder in due course; and it is alleged that if the note has been assigned to the plaintiff such assignment was not in good faith but merely to enable it to maintain an action upon the note. It is further alleged that the indebtedness represented by the note arose during the year 1922 and prior thereto and was renewed from year to year until on or about October 9, 1926, when the note in suit was executed and delivered in payment of such indebtedness. It is further alleged that while such indebtedness was outstanding and before the execution and delivery of the note in suit the defendant assigned, endorsed and delivered to the Bresden-Larson Lumber Company, as collateral security for the payment of her indebtedness to that company, a certain promissory note dated August 11, 1921, executed and delivered to. .the defendant as payee by A. H. Austinson and Henry J. Austinson; such note being in the sum of $595.50, bearing interest at the rate of ten per .cent per annum, and payable October 1, 1922. It is further alleged that on or about December 15, 1922 without the knowledge or assent of the defendant the said Bresden-Larson Lumber-Company made full and final settlement with said A. H. and Henry J.. Austinson by then and there taking and accepting from them in pay *484 ment of such promissory note, another promissory note in writing dated on that day, payable to the Bresden-Larson Lumber Company and at the same time took from said A. EL - and Henry J. Austinson, a chattel mortgage upon twenty-eight head of live stock, certain farm machinery and certain crops to secure the payment of the latter note. It is further alleged that the defendant was never informed of these facts; and at the time of the execution and delivery of the note in suit did not know that the Bresden-Larson Lumber Company had, converted said collateral note. It is further alleged that the Bresden-Larson Lumber Company did then and there take the said note pledged by the defendant as collateral and convert the same to its own use, and has at all times since December 15, 1922 exercised ownership over the same. It is further alleged that the defendant at the time of the execution and delivery of the note in suit had no knowledge or information of the acts of the said Bresden-Larson Lumber Company in converting the said collateral note to its own use and that the said company fraudulently concealed the said fact from her and led her to believe that she was still indebted to them; and that the Austinson note which she had pledged as collateral security had not been paid but was still held by it as collateral security to defendant’s indebtedness; and that said defendant in reliance upon said representations executed the note in suit. It is further alleged that by reason of the payment of the Austin-son note or the conversion thereof by the Bresden-Larson Lumber Company the defendant was not indebted to said company in any amount whatsoever at the time the note in suit was executed and delivered. It is further alleged that the defendant, in the belief that she was still indebted upon the note in suit, has made various payments aggregating in all some $250. The defendant avers that by reason of these facts the note in suit is without consideration and that the obligation evidenced thereby has been fully paid and satisfied. Judgment is asked “that the plaintiff take nothing by this action and that the same be dismissed; that the defendant’s counterclaim offset the plaintiff’s claim; that the defendant have her costs herein and such other relief as to the court may seem just.”

The case came on for trial before a jury upon the issues thus framed. The plaintiff offered the note in evidence. The court asked if there was any objection to the admission of the proffered exhibit; defendant’s *485 counsel replied that the defendant in its answer admitted the execution of the note but did not admit that it was given for a valuable consideration. • The note was received in evidence. There was also an admission as regards the execution of the chattel mortgage whereupon plaintiff rested its canse. The defendant thereupon adduced evidence tending to establish the fi.cts alleged in her pleading. At the close of all the evidence, that is, after both parties had rested, the defendant moved for a directed verdict. Plaintiff’s counsel stated that he opposed the motion but in a subsequent colloquy between the court and' counsel it was agreed that there were no disputed questions of fact and that there was only a question of law for the court to decide. The court thereupon discharged the jury and in so doing stated: “There is not a fact in this case that is disputed. . . . There is no issue of fact for the jury so they have agreed to submit it to the court.” Some thirty days later the plaintiff, pursuant to notice, moved that a new trial of the action be had; that further testimony be taken therein, or that said action be dismissed, without prejudice.

The trial court ordered a dismissal of the action without prejudice. Judgment was entered accordingly and defendant has appealed. The sole question presented on this appeal is whether the trial court erred in ordering a dismissal of the action without prejudice to the commencement of another action. Our statute (Comp, laws 1913, § 7597) provides:

“A civil action may be dismissed, without a final determination of its merits, in the following cases:

“1. By the plaintiff, at any time before trial, if a provisional remedy has not been allowed, or counterclaim made, or affirmative relief demanded in the answer; provided, that an action on the same cause of action against any defendant shall not bé dismissed more than once without the written consent of the defendant or an order of the court on notice and cause shown.

“2. By either party, with the written consent of the other; or by the court upon the application of either party, after notice to the other, and sufficient cause shown, at any time before the trial.

' “3. By the court, when upon the trial and before the final submission of the case, the plaintiff abandons it, or fails to substantiate or establish his claim, or cause of action, or right to recover.

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Cite This Page — Counsel Stack

Bluebook (online)
222 N.W. 618, 57 N.D. 482, 1928 N.D. LEXIS 152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merchants-farmers-state-bank-v-ronning-nd-1928.