Midland Investment Co. v. Nelson

148 S.E. 9, 107 W. Va. 220, 1929 W. Va. LEXIS 67
CourtWest Virginia Supreme Court
DecidedApril 16, 1929
Docket6422
StatusPublished
Cited by3 cases

This text of 148 S.E. 9 (Midland Investment Co. v. Nelson) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Midland Investment Co. v. Nelson, 148 S.E. 9, 107 W. Va. 220, 1929 W. Va. LEXIS 67 (W. Va. 1929).

Opinion

Lively, Judge:

A verdict and judgriient thereon for $502.76 against E. B. McGee in favor of Midland Investment Company was rendered on August 18, 1928, and he prosecutes error.

*221 Plaintiff finances automobile dealers by purchasing negotiable notes taken by the dealers from the purchasers of cars, as well as notes taken under conditional sales. Rufus Nelson purchased a truck from Clemans Motor Car Company and executed to the latter a note for $500.00 dated October 13, 1925, which is the note sued on and which was sold to plaintiff and payment thereof unconditionally guaranteed by the Motor Car Company. The note was to be discharged in ten monthly payments with accrued interest, and if any installment payment was not made when due, then the entire amount of the note remaining unpaid became due. Nelson made the first payment and refused to pay further, claiming that the truck would not do the work for which it was purchased. Prior to the sale of the truck to Nelson the Clemans Motor Car Company, a partnership, was formed by Leroy Clemans and W. W. Hanshaw, who made an arrangement with the Midland for financing its business in the manner above indicated. A month or so after the Motor Car Company had operated, Clemans sold his interest to E. B. McGee and the Midland was so advised.. Later, in January, 1925, McGee sold his interest in the partnership to Hanshaw, who continued the business under the original firm name. It will.be observed that the note sued on was executed by Nelson to the Motor Car ‘Company about nine months after McGee had sold his interest in the Motor Car Company. McGee had, in fact, no interest in the Motor Car Company at the time the note was transferred and payment guaranteed to the Midland. He pleaded that fact. Midland replied that it had .no notice that he had severed his connection with the Motor Can Company, and that the note was purchased by it on the assumption, well founded, that he was still a partner, and that credit was extended to the Motor Gar Company solely because he was a member. This was one of the issues decided by the jury. Hanshaw and McGee both say they advised Bush, the manager of Midland, on July 13, 1925, that they were on a trade by which McGee would retire from the partnership, and they say they told him a day or so later that they would consummate the transaction that day, but did not tell him that they had actually done so. Bush admits that *222 they told him negotiations between, them were pending, but denies that he was advised that they would close the negotiations, or had done so. On the other hand, he says that Hanshaw told him later, about July 1, 1925, that McGee still was a partner, and that he purchased their paper only because of McGee’s responsibility as a partner. There is other evidence which tends to show that McGee and Hanshaw had advised Bush only of pending negotiations for the withdrawal of McGee from the firm, and that their remembrance that they had told Bush that their minds had met and that they would close the negotiations on a certain day, was an afterthought. The evidence as to whether Midland knew or should have known that McGee was not a partner at the time it purchased the note, was in sharp conflict, and presented a jury question. It is claimed, however, that the court took that question from the jury by instructing them as follows: “The court instructs the jury that notice that the partners were considering a dissolution, is not of itself notice of dissolution of the partnership.” The claim is that this instruction ignores the evidence of McGee and Hanshaw that they later told Bush their minds had met and they would that day close the deal. The instruction complained of is abstract in form, but there is evidence to sustain it. The jury could not have been misled from considering the evidence of McGee and Hanshaw on this part of the case, for they were told by other instructions that if they believed that McGee had withdrawn from the partnership prior to the execution and purchase of the note sued on yet to excuse him from liability thereon they must further believe from the evidence that plaintiff knew that the partnership had been dissolved before the purchase of the note. Defendant’s instruction No. 2 told the jury that if they believed Bush had been notified of the sale of McGee’s interest in the partnership prior to the purchase of the note sued on, then they should find for McGee. Instructions must be considered together. State v. Dodds, 54 W. Va. 289, 46 S. E. 228; Sacketts Inst., sec. 23; Showalter v. Chambers, 77 W. Va. 720, 88 S. E. 1072. We find no error in the instructions.

*223 The other points of error are encompassed in the assertion that the verdict is contrary to the law and evidence. It is argued (1) that no recovery could be had against Nelson or McGee until the Midland had sold the truck in conformity with the conditional sales law and accounted to the maker of the note for the proceeds; and (2) that there could be no liability on McGee (granting that he was a partner) as endorser or guarantor, because his liability was secondary to that of Nelson, the maker, and that the jury having found Nelson was not liable to plaintiff, the verdict against McGee, the endorser or guarantor, could not stand; therefore, it was error to refuse to set aside the verdict and grant McGee a new trial.

If there was a conditional sales contract between the Motor Car Company and Nelson for the truck, its terms do not appear in the record. No such contract was introduced in evidence, although it appears that a paper was in the hands of counsel for defendants McGee and Hanshaw which he intimated was a conditional sales contract. There is no evidence that such a contract accompanied the note when it was purchased or that Midland had notice of a conditional sale or its terms. It does appear, however, that after Nelson refused to pay for the truck on the ground that it would not do the work it was represented to do, Hanshaw repossessed it with the concurrence of Nelson and placed it in the garage of the Motor Car Company where it remained for several months, and it does not clearly appear what became of it. Whether he took it back under his conditional sales contract, if he had one, or because it was defective and no obligation rested on Nelson to pay for it, does not appear. What final disposition was made of the truck does not clearly appear. Hanshaw thinks it was sold about six months later at the same time other ears which belonged to Midland were sold (and which were on storage in his garage) and purchased by Midland. Bush did not know what became of it, and he says that Midland did not direct the truck to be repossessed, and did not know that it had been brought in, and that where cars are repossessed they go back to the dealer and belong to him. *224 Hanshaw attempted to testify that he repossessed the truck by direction of Midland, but this evidence was stricken out, and the court instructed the jury not to consider it. Under the evidence wre can perceive no duty on plaintiff to repossess or sell the cars as required by the conditional sales law. It reasonably appears that the duty of repossessing and selling (if sold conditionally) in order to hold the purchaser for the residue as between the seller and purchaser, was the duty of the seller, the Motor Car Company.

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Cite This Page — Counsel Stack

Bluebook (online)
148 S.E. 9, 107 W. Va. 220, 1929 W. Va. LEXIS 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midland-investment-co-v-nelson-wva-1929.