Morad v. Whitaker

565 P.2d 484, 1977 Wyo. LEXIS 264
CourtWyoming Supreme Court
DecidedJune 15, 1977
DocketNo. 4614
StatusPublished
Cited by1 cases

This text of 565 P.2d 484 (Morad v. Whitaker) 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
Morad v. Whitaker, 565 P.2d 484, 1977 Wyo. LEXIS 264 (Wyo. 1977).

Opinion

ARMSTRONG, District Judge, retired.

Appellant Ethel S. Morad and her now deceased husband, Roland Morad, entered into a written agreement on February 5, 1971, to sell their interest in certain land to appellees, Raymond B. Whitaker and Bloody Turnip, Inc., a Wyoming corporation, for the sum of $40,000.00. The contract called for a down payment of $15,-000.00, which was paid, and annual installments of $5,000.00 for five years drawing interest at 8% per annum.

Roland Morad died January 15,1974. On February 5, 1974, appellant, Mrs. Morad, requested of appellee Whitaker a payment of an installment and for a statement of account of the balance due on the contract. On July 19, 1974, appellee, on his own behalf and as president of the corporation, delivered a “preliminary accounting” of payments made to Roland Morad in his lifetime. The accounting consisted of a list of checks from the accounts of both appel-lees.

[485]*485Mrs. Morad filed suit as an individual and as executrix against appellees on December 27, 1974. An amended complaint was filed May 23, 1975, which alleged that no installments had been paid and that even if the credits, which appellees claimed in the preliminary accounting and in the answers to interrogatories, were allowed there was a balance then dué and owing of $10,568.56.

Appellee Whitaker filed a counterclaim alleging that Mrs. Morad owed him $4,550 for legal services.

At trial, on August 5, 1975, Mrs. Morad testified that the down payment had been made and that other sums has been received by her late husband, but she did not know the amounts or purpose thereof.

Appellees offered into evidence 67 checks which had been listed theretofore in the interrogatories, together with a summary of the checks, as book records of the payments on the contract. Appellants objected to the offer on the ground that payment or accord and satisfaction had not been pleaded as affirmative defenses required by W.R. C.P. 8(c). Appellants’ further objection was that the dead man’s statute, § 1-140, W.S. 1957, prohibited Whitaker from testifying to transactions with the decedent when appellants were the sole heir and executrix of the estate.

The trial court overruled the first objection and permitted appellees to amend their pleading to conform to the evidence. After it was established that the checks and the corresponding stubs were kept by appellees’ employees in the regular course of business as their only record of the account, the court overruled the second objection and admitted the checks and summary into evidence.

A witness for appellees testified that he had calculated the interest on a declining balance from each payment, including some made before the date of the sales agreement, and that the balance due on August 1, 1975, was $12,074.70; that the balance would be $15,212.21 if the payments made to decedent prior to the contract were excluded.

The district court entered judgment on September 29, 1975, in favor of appellants for $10,212.21 since the last of installments of $5,000.00 would not be due until February 5, 1976. The judgment also gave Whitaker $4,000.00 for legal services rendered Mrs. Morad in other matters, one of which will be briefly discussed herein.

Appellants present three issues on appeal: (1) whether evidence of payment can be asserted and allowed when it was not pleaded; (2) whether appellees’ testimony of transactions with the decedent is admissible when the appellants were the executrix and heir of that decedent; and, (3) whether the evidence supported the judgment for appel-lee’s fees as Mrs. Morad’s attorney.

In the light of the facts of this case the court will answer the three issues in the affirmative.

I.

W.R.C.P. 8(c) provides in pertinent part:

“In pleading to a preceding pleading, a party shall set forth affirmatively * * payment * * * and any other matter constituting an avoidance or affirmative defense. * * * ”

Appellants contend that a failure to plead payment as an affirmative defense constitutes a waiver and that evidence thereof may not be received. They cite Pangarova v. Nichols, 419 P.2d 688 (Wyo.1966) and Texas Gulf Sulphur v. Robles, 511 P.2d 963 (Wyo.1973) to support the statement. We find no fault with the application of the rule in those cases. However, the facts in the case at bar make those cases easily distinguishable. In neither cited case was there: (a) an offer of proof; (b) a timely motion to amend the pleading to conform to the evidence; (c) any showing of prejudice or surprise or the lack thereof; (d) interrogatories submitted by the objector in which the answers disclosed payments; and (e) in the Texas Gulf ease, the issue of failure to plead affirmative matter was not raised until a motion for a new trial was proposed after judgment.

[486]*486Appellees correctly argue that W.R.C.P. 15(b) gives the court discretion to allow pleadings to be amended under certain conditions, and no abuse of that discretion has been sufficiently shown. Section 15(b) of the rules reads in part:

“ * * * Such amendment of the pleadings as may be necessary to cause them to conform to the evidence and to raise these issues may be made upon motion of any party at any time, even after judgment; but failure so to amend does not affect the result of the trial of these issues. If evidence is objected to at the trial on the ground that it is not within the issues made by the pleadings, the court may allow the pleadings to be amended and shall do so freely when the presentation of the merits of the action will be subserved thereby and the objecting party fails to satisfy the court that the admission of such evidence would prejudice him in maintaining his action or defense upon the merits. * * * ”

Wright & Miller, Federal Practice and Procedure: Civil Section 1495, pages 478 and 480 says this with respect to Rule 15(b):

“To justify the exclusion of the evidence, the rule contemplates that the objecting party must be put to some serious disadvantage; it is not enough that he advances an imagined grievance or seeks to protect some tactical advantage. * * * Thus, Rule 15(b) requires that the party opposing the amendment be seriously prejudiced in the presentation of his action or defense on the merits. Absent a showing of this character, the court should grant leave to amend and allow evidence on the newly raised issue to be introduced. * * * ”

Appellants here admitted that they were not prejudiced by the offer to prove the payments which had not been affirmatively pleaded. The court finds no serious disadvantage to the appellants by the reception of that evidence.

It must be understood that the ruling in this case does not in every case suggest that a trial court should allow an amendment to pleading to conform to the evidence especially when such evidence encompasses an affirmative defense. Such defenses, of course, should ordinarily be pleaded at the proper time. The facts, the pleadings, and the evidence in this case, however, clearly show that appellants were not surprised or prejudiced by the payments alleged and listed by appellees. In fact, appellants, before trial, recognized the appellees’ claimed credits in discovery processes and in summary judgment proceedings.

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Bluebook (online)
565 P.2d 484, 1977 Wyo. LEXIS 264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morad-v-whitaker-wyo-1977.