Miller v. Exchange Nat. Bank of Tulsa

1937 OK 373, 71 P.2d 456, 180 Okla. 550, 1937 Okla. LEXIS 492
CourtSupreme Court of Oklahoma
DecidedJune 8, 1937
DocketNo. 27247.
StatusPublished
Cited by3 cases

This text of 1937 OK 373 (Miller v. Exchange Nat. Bank of Tulsa) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Exchange Nat. Bank of Tulsa, 1937 OK 373, 71 P.2d 456, 180 Okla. 550, 1937 Okla. LEXIS 492 (Okla. 1937).

Opinion

[ELPS, J.

This was an action to -er upon a promissory note in the sum 50,000 given by the defendant Alma r England to the defendant Zack T. r, secured by a real estate mortgage, i note had in turn been assigned by T. Miller to the plaintiff as collat-security for the payment of a note of 30 given by the defendant Zack T. r to the plaintiff. No money judg-was sought against Zack T. Miller, was joined as a party defendant for mrpose of foreclosing any right which ,s pledgor of the Alma Miller England and mortgage, might have in the faged premises, and in order to de-ne the amount due on his note of 30. There was no controversy over .mount due on either note. Execution of notes, and the assignment to plaintiff lack T. Miller of the Alma Miller and note and mortgage, were admit-The trial court entered judgment in of the plaintiff, and the defendants 1. The defendant Alma Miller Eng-presents no argument upon appeal than by reference to the brief of [efendant Zack T. Miller, and the is-in this case are argued between and the plaintiff.

i defendant Zack T. Miller first urges the judgment of the trial court is st the clear weight of the evidence, ontends that the weight of the evi-was with his defense of failure of leration for the execution of the i0 note. The theory upon which he ded the action was that prior to tion of the note he was not personal-lebted to the plaintiff, but that the • Brothers 101 Ranch Trust was in-1 to plaintiff, and that the plaintiff threatening to institute receivership >ankruptcy proceedings against the trust, in which he owned a eonsid- ! share, and that he executed this assigning at the same time the $50,-note in suit as collateral, for the se of the plaintiff bank made by its president that it would in any event the filing of such action against the trust for a period of one year the date of his note; that the plaintiff bank had not kept the agreement, but did file such action for the appointment of a receiver, and said receiver was appointed, in a little more than six months following the date of the agreement and the execution of the note. He contends that this was an oral agreement made by the plaintiff with him at the time and on the date when he signed said $89,300 note. Therefore he contends that, since the promise of the bank was not kept, which promise was the consideration for which he signed the note, the $89,300 note should be canceled, and that likewise his assignment to the plaintiff of the $50,000 note in suit, which was merely colla feral to the $89,-300 note, should also ho canceled and rescinded.

Considering the case on its merits, and disregarding- questions involving the parol evidence rule, still the evidence does not bear out the contention of the defendant. The record clearly indicates the following to be the facts: On and prior to February 6, 1931, which was the date of the $89,300 note and of the collateral assignment to the plaintiff of the $50,000 note. in suit, the Miller Brothers 101 Ranch Trust was indebted to the plaintiff in the approximate sum of $121,000 on five promissory notes. The defendant Zack T. Miller owned about, one-third of the trust estate and was managing it. The notes of the trust estate were past duo and the plaintiff bank had been pressing Miller for payment, and had been threatening to institute court proceedings for that purpose. Miller on behalf of the trust estate was at that time negotiating with certain interests in New York for financial assistance. Miller fearing the effect upon those negotiations of any suit which might be instituted by the bank, arrangements were made between him and the hank whereunder he was to buy from the bank the $121,000 face value notes for the sum of $100,000, the bank agreeing to discount them that much for Miller’s personal note if he would give the bank sufficient collateral security for his said personal note. However, before the execution of the agreement, the trustee of the trust paid the bank $10,700 on the indebtedness of the trust to the bank, and accordingly the $100,000 purchase price which had originally been agreed upon was reduced to $89,300, the face amount of Miller’s note.

On February 6, 1931, the date of the execution of the $89,300 note and of the assignment . of the $50,000 Alma Miller England note by Zack Miller to the bank, *552 Mr. Thompson, vice president of the plaintiff bank, by prearrangement went to the ranch and. there had an extended conference with defendant Miller and certain attorneys then representing him. Four or five persons were present during the negotiations. The bank, acting through Mr. Thompson, there assigned to Miller ihe notes of the trust estate which had been owned by the bank, and the consideration for the sale of said notes to Miller was Miller’s execution of the $89,300 note to the bank. Miller then assigned back to the bank the notes' of the trust estate which it had owned, as collateral for his $89,300 note, lie also assigned as collateral the $50,000 note and mortgage which was the subject of this action. As further collateral he assigned the bank certain life insurance policies.

The $89,300 note which he gave the bank was to mature in six months. During the conference at the ranch and preceding his signing of the note, he contended that six months would not be long enough for him to get straightened out financially, and that he would need a year for that purpose. His testimony was (and this is the meat of his defense) that Thompson then and there made an oral agreement with him to the effect that, although the bank could not give him a year to pay the note on the face thereof, the bank would fore-go the filing of any court action against the trust estate, in bankruptcy or for the appointment of a receiver, for at least one year from that date. He testified that Thompson made this agreement orally, and that the bank thereafter did, within less than a year, institute such receivership action. But the evidence further discloses that Miller insisted upon this agreement being put in writing, and he stated on cross-examination that it was put in writing in the form of a letter from Thompson to him, written at that time, but that he had lost said letter. Being shown by plaintiff’s attorney a carbon copy of a letter, he admitted that it was a true and correct copy of the letter of which he had been speaking. The letter reveals that the promise of the bank was, not that it would defer instituting any action, such as described by the defendant Miller, but that the bank agreed that if Miller would pay $40,000 on the note within six months afterward, the bank would surrender back to Miller the $50,000 note and mortgage which is the subject of the present action, and would also extend the $89,300 note for an additional period of six me It does not appear that said $40,000 paid to the bank by the defendant A The letter follows:

“February 6, 193
“Mr. Z. T. Miller,
“Ponca City, Oklahoma
“Dear Mr. Miller: Pursuant to our ment made coincident with the ( tion by you of a note to our Bank i: sum of $89,300.00, dated February 6, and maturing six months after dab hereby agree that .upon the payment of $40,000.00 plus interest at 6% froi date of said note, to surrender to y< your order the $50,000.00 first, real . mortgage described in the promissory
“It is understood, however, that tin $40,000.00 and interest must be paid t bank on or before six months from of said note.

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Bluebook (online)
1937 OK 373, 71 P.2d 456, 180 Okla. 550, 1937 Okla. LEXIS 492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-exchange-nat-bank-of-tulsa-okla-1937.