Mundorff v. Ramm

226 P. 820, 66 Cal. App. 553, 1924 Cal. App. LEXIS 494
CourtCalifornia Court of Appeal
DecidedApril 16, 1924
DocketCiv. No. 2671.
StatusPublished
Cited by7 cases

This text of 226 P. 820 (Mundorff v. Ramm) 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
Mundorff v. Ramm, 226 P. 820, 66 Cal. App. 553, 1924 Cal. App. LEXIS 494 (Cal. Ct. App. 1924).

Opinion

HART, J.

This action was instituted by the plaintiff against the defendants to recover on a promissory note, alleged to have been executed by the defendants in favor of the plaintiff on the first day of September, 1920, for the sum of $25,000, interest payable at the rate of six per cent per annum.

The cause was tried before a jury by whom a verdict was returned in favor of Pearl Ramm, etc., and judgment as to her was entered accordingly. The defendants Knox, Noroian and Hagopian defaulted and judgment on their default was entered against them for the full amount of the note sued on. A motion for a new trial as against the verdict in favor of said Pearl Ramm, etc., was made and denied. This appeal is by the plaintiff from the judgment in favor of said Ramm.

The note declared upon is set out in full in the complaint. It provides for the payment thereof in installments as follows: $10,000 on or before the first day of January, 1921; $7,500 on or before the first day of April, 1921, and $7,500 on or before the first day of September, 1921. Said note provides that interest on the principal shall be payable semiannually and that if default be made in any installment of *556 principal or interest, the whole amount of said principal and interest shall become immediately due and collectible.

The complaint alleges: “That at the time of the making, execution and delivery of the aforesaid promissory note, to-wit, on the first day of September, 1920, and as a part of the same transaction, and as the consideration and inducement upon which and for which the plaintiff delivered to said E. J. Knox the consideration for said promissory note, the defendants George Noroian and Albert D. Hagopian, together with Charles H. Ramm, made, subscribed and caused to be endorsed and delivered upon the back of said promissory note their written instrument of guaranty in words and figures as follows, to-wit: ‘For value received, I hereby guarantee the payment of the within note and any renewal of the same, and hereby waive protest, demand and notice of nonpayment thereof. ’ ” (Signed by the last above-named defendants.)

It is alleged that there became due on the principal of said note on the first day of January, 1921, the sum of $10,000 and likewise there became due the sum of $7,500, “but that neither of said installments of principal has been paid and on March 1, 1921, the interest on the whole amount of principal of said promissory note became due; that no part of said installment of principal due and no part of said interest due has been paid, and pursuant to the terms of said promissory note plaintiff has and does hereby elect to declare the whole amount of principal and interest immediately due and collectible.”

It is further alleged that Charles H. Ramm died intestate in the county of Fresno, on the eleventh day of January, 1921; that thereafter, and on the thirty-first day of January, 1921, the defendant Pearl E. Ramm, after due proceedings, was appointed administratrix of the estate of said deceased, and that, on the eighteenth day of February, 1921, she duly qualified as such administratrix; that, on the nineteenth day of March, 1921, plaintiff duly filed, in legal form, a claim against said estate founded on the note in suit. It is further alleged that ten days had elapsed since the date of the filing of said claim and that the said administratrix had taken no action thereon, neither rejecting nor allowing the same within ten days from and after the filing thereof, and that plaintiff, therefore, proceeds upon the presumption *557 that said administratrix has rejected said claim. (Code Civ. Proc., sec. 1496.)

The answer, besides interposing formal denials to the averments of the complaint, sets np several defenses which are in the nature of pleas by way of confession and avoidance, viz.: 1. That Charles H. Ramm, at the time that he executed and so became a party to the obligation on which it is herein sought to hold and bind his estate, was mentally incompetent" to transact business; 2. That the consideration inducing’ and moving said Charles H. Ramm to sign and execute the in-' strument of guaranty “has wholly failed,” in that said Ramm executed said obligation wholly upon the condition that one W. S. Hunger would, prior to the delivery to plaintiff of said note, execute the said instrument of guaranty jointly with him (said deceased); that “the makers of said note delivered the same to plaintiff, the payee named therein, with said instrument of guaranty endorsed thereon, without ■ having first procured the execution of said instrument by said W. S. Hunger; that plaintiff had knowledge of said condition upon which said Charles H. Ramm executed "said instrument, prior to the delivery of the same to plaintiff; . . . that the maker of said note promised and agreed with said Charles H. Ramm that if said Charles H. Ramm would execute said instrument, the execution thereof by one W. S. Hunger would be procured prior to the delivery thereof to plaintiff, and in the ease of the failure of said Hunger to execute the same, said note, with said instrument of guaranty endorsed thereon would not be delivered to plaintiff; that without said promise and agreement on the part of the maker of said note, said Charles H. Ramm would not have executed said instrument; . . . that, notwithstanding his said promise and agreement, said maker fraudulently and without right delivered said note to plaintiff, the payee named therein, with said instrument of guaranty endorsed thereon, without first having obtained the execution of said instrument by the said W. S. Hunger.”

A third special defense is set up, to wit: That the execution of the guaranty by Charles H. Ramm was by mistake" “which mistake plaintiff knew at the time or suspected,” etc. This defense, however, is based upon the facts set out in support of the preceding special defense to the effect that Charles H. Ramm executed the guaranty solely upon the eon *558 dition that said Hunger would join in the execution of the same obligation prior to the delivery of the note, with said guaranty indorsed thereon, to the plaintiff.

At the trial there was little reliance predicated upon the two last defenses referred to above. The defense of mental incompetency was principally relied upon in resistance to recovery upon the guaranty as against the estate of the deceased. At any rate, the evidence was mainly addressed to that issue, and thus we may assume that it was upon that issue that the verdict was planted.

The plaintiff contends that the verdict is not sufficiently supported by the evidence. It is also likewise claimed that the court erred in instructing the jury upon the. question of failure of consideration for the alleged reason that there was no evidence introduced in support of the defense based upon that ground. Another instruction is assailed on the same ground. The contention is also made that there was no rescission of the contract, as required by section 1961, subdivision 2, Civil Code. The first point necessitates, of course, an examination herein of the evidence upon the issue of the alleged unsoundness of mind of the deceased, Charles H. Ramm, at the time he executed the obligation upon which this action is founded.

The note and guaranty in suit arose out of the following transactions: One E. J.

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Bluebook (online)
226 P. 820, 66 Cal. App. 553, 1924 Cal. App. LEXIS 494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mundorff-v-ramm-calctapp-1924.