Minor v. Carpenter

169 P. 434, 35 Cal. App. 200, 1917 Cal. App. LEXIS 358
CourtCalifornia Court of Appeal
DecidedNovember 5, 1917
DocketCiv. No. 1720.
StatusPublished

This text of 169 P. 434 (Minor v. Carpenter) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Minor v. Carpenter, 169 P. 434, 35 Cal. App. 200, 1917 Cal. App. LEXIS 358 (Cal. Ct. App. 1917).

Opinion

BURNETT, J.

The action was for the amount due on a promissory note and to foreclose a mortgage given to secure the payment of the same.

The complaint is in the usual form, and the genuineness and the execution of the note and mortgage were not denied.

The defenses were (1) that the note was fully paid on December 21, 1909; (2) that by virtue of certain instruments in writing set out in the answer “the time for the payment of the debt represented by said promissory note and mortgage sued upon herein was extended and postponed to the time of the expiration of the said bond for a deed, exhibit ‘ C, ’ to wit, to the twentieth day of August, 1916”; (3) that exhibit “A” was taken and accepted by plaintiff as a substitution for the said promissory note and mortgage with the intention to extinguish the same, and that “there was a novation of said contract, exhibit ‘A,’ for said promissory note and mortgage, and that said promissory note and mortgage was thereby annulled, extinguished, and fully paid”; (4) that the execution and delivery of a certain deed was intended “as a full and complete payment of all and every debt of all and every kind, due from said Carpenter to said plaintiff, including the promissory note and mortgage debt involved in this action, that plaintiff accepted said deed as such full payment, and then and there agreed with said Samuel Carpenter to reconvey to said Carpenter the said property described in said deed on the payment by Carpenter to him of the sum of twenty-six thousand four hundred dollars.”

The findings and judgment were in favor of plaintiff and the appeal is from the judgment and the order denying the motion for a new trial. Defendant Pentuff, who had taken a bond for a deed of the premises, has filed a stipulation herein that the appeal as to him may be dismissed, so that in considering the cause upon its merits only the interest of the plaintiff and the defendant Carpenter will receive attention. It is not disputed that the burden was upon the defendants to establish the affirmative matters set up in their answers. *202 {Brenneke v. Smallnan, 2 Cal. App: 306, [83 Pac. 302]; Melone v. Buffino, 129 Cal. 514, [79 Am. St. Rep. 127, 62 Pac. 93].) On the contrary, that the debt was not paid and the note discharged as an existing obligation either by the payment of money or by virtue of the execution of any instrument in writing or agreement of the parties is fully shown by the evidence. It also appears, at least sufficiently to support the finding of the court, -that the time for the payment' of the obligation was not extended. To show abundant support for the conclusion of the trial court respondent calls attention to various portions of the transcript wherein are revealed important facts that justify the inference that the original obligation remained in full force and effect. A brief resumí of these facts, may not be amiss: Plaintiff testified positively that no part of the note had been paid; in defendant Carpenter’s original proposition, the words “cancel my note and mortgage” were included, but they were omitted from said exhibit “A” with Carpenter’s knowledge and consent; in said exhibit “A” signed by him on December 20, 1909, occur these words, “the mortgage and interest and notes heretofore given T. H. Minor amounting at this date to about fifteen thousand dollars will be paid, and T. H. Minor to have besides the payment of the mortgage notes and interest, eleven thousand four hundred dollars, out of the first payment made on sale, bond or lease”; the words, “and additional accrued interest on existing mortgage” were inserted in supplemental agreement of December 21, 1909, with full knowledge of the matter; the power of attorney prepared by defendant Carpenter and dated September 1, 1911, contains this significant phrase, ‘ ‘ Cash and additional accrued interest at eight per cent per annum upon the existing $12,462.15 mortgage upon said eight hundred acres of land from December 20, 1909, to the date of sale or bonding”; Carpenter admitted that he included $12,462.15 at eight per cent interest in his statement in the amount specified in the bond, the sum for which this mortgage herein was given; in the deed to plaintiff dated November 14, 1910, defendant incorporated this provision, “subject, however, to $12,462.15 at eight per cent per annum, mortgage dated December 13, 1907, and executed by Samuel Carpenter in favor of T. H. Minor,” and he had in his possession this deed containing this exception from November 14, 1910, until September 1; 1911; at np *203 time did defendant ask to have the mortgage canceled. Other significant circumstances are pointed out, but the foregoing are sufficient to show how substantial is the support for the finding of the court that the note was not paid nor the time extended.

Indeed, the language of the instruments themselves, upon which Carpenter relies as operating to discharge the indebtedness or to extend the time for its payment, affords no ground for Ms contention. There is nothing of the kind provided therein. No expression is used from which the inference would follow that the parties thereby intended or contemplated that a novation should take place or that the obligation arising from the note was extinguished, extended, or modified in any respect. The terms of said instruments, to the contrary, expressly recognize the validity of said note as an existing obligation. In addition, as to the extension of time it may be said that no definite time is stated or intimated to which the payment is to be deferred, and, of course, it will not be disputed that where a party depends upon an extension of time to meet his obligation, he must show an agreement for a time certain. (Prather v. Young, 67 Ind. 480; Brenneke v. Smallman, 2 Cal. App. 306, [83 Pac. 302].)

It is apparent that only by virtue of parol evidence could it be held that the instruments referred to should be deemed as constituting a novation or modification of the terms of said note. Appellant, indeed, claims that parol evidence was admissible to show such intention of the parties, and he insists that the court erred in sustaining the objection to certain questions having that object in view. The inquiry ^assumed various forms, but the following will illustrate the situation: “What was your agreement with Col. Minor with reference to the mortgage and notes here in controversy as connected with or modified by the exhibit ‘A’ contract which is now in evidence?” “What was your understanding at that time, what was your belief rather, as to the understanding Col. Minor had as to whether that mortgage and note would be in existence, or this would take its place?” “You may state whether or not at the time of the execution of exhibit ‘A’ from Mr. Minor’s conversation with you at the time you believed, and now believe, that he understood at that time that by the execution of exhibit !A’ the debt represented by the *204 note and the mortgage in this ease was to be extended until you bonded, sold, or leased the Gold Mountain mine and received the money therefor?” In considering the ruling of the court upon these and other similar questions, we can hardly lay out of view the utterly inconsistent attitude assumed by appellant.

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Related

Brenneke v. Smallman
83 P. 302 (California Court of Appeal, 1905)
Piper v. Kellerman
162 P. 423 (California Court of Appeal, 1916)
Melone v. Ruffino
62 P. 93 (California Supreme Court, 1900)
Prather v. Young
67 Ind. 480 (Indiana Supreme Court, 1879)

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Bluebook (online)
169 P. 434, 35 Cal. App. 200, 1917 Cal. App. LEXIS 358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/minor-v-carpenter-calctapp-1917.