Nebraska Mutual Bond Ass'n v. Klee

97 N.W. 476, 70 Neb. 383, 1903 Neb. LEXIS 292
CourtNebraska Supreme Court
DecidedNovember 18, 1903
DocketNo. 13,171
StatusPublished
Cited by11 cases

This text of 97 N.W. 476 (Nebraska Mutual Bond Ass'n v. Klee) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nebraska Mutual Bond Ass'n v. Klee, 97 N.W. 476, 70 Neb. 383, 1903 Neb. LEXIS 292 (Neb. 1903).

Opinion

Kirkpatrick, C.

This action was instituted in the district court for Douglas county by the Nebraska Mutual Bond Association, plaintiff, against Fred Klee, defendant, declaring upon three promissory notes aggregating $88. In his answer, the defendant pleaded that the notes were wholly void, and that their execution had been obtained by duress, in that the plaintiff, through its agents and others, threatened the defendant that, if he did not sign the notes and settle with the plaintiff, on an alleged charge that the 'defendant’s son-in-law, one Charles W. Norton, had embezzled moneys from the Singer Sewing Machine Company, the plaintiff would prosecute and imprison Norton, and send him to the penitentiary; the answer alleging that said threats were made for the purpose of overcoming the will of the defendant, and that they did overcome his will, causing him to sign the notes'; that he would not have signed them but for the threats mentioned. The answer alleged that Klee was a German by birth, and a working" n,\an, em[384]*384ployed in the Union Pacific shops; that he was not well versed in the English language,-and that, at the time of the signing of the notes sued upon, he was wholly unaccustomed $0 the transaction of such business; and that his mind was so weak as to be easily overcome by threats, such as those alleged, which were well calculated to overcome the will of a man of ordinary strength and experience. A second paragraph in the answer alleged substantially the same facts; that Norton, defendant’s son-in-law, was charged with the embezzlement of a sum of money from the Singer Sewing Machine Company, and that plaintiff threatened to prosecute him unless defendant signed the notes and that defendant was induced by this threat to sign the notes.

In reply, plaintiff alleged that prior to the signing of said notes, Norton had applied to it for a fidelity bond, in favor of the Singer company, of $500; that, before giving ■this bond, plaintiff required an indemnity bond to secure it against loss by reason of signing the fidelity bond; that plaintiff then requested Klee, the defendant, to sign the indemnity bond, which he did, in the sum of $500, the bond being set out in the reply. The reply further alleged that Norton defaulted, and became indebted to the Singer company in about the sum of $115; that by agreement between Klee and the Singer company, this shortage was settled for the sum of $88, and that Klee instructed the plaintiff to pay this sum to the company, and gave the notes described in the petition in settlement of the amount so paid by plaintiff to the company.

There was a trial to the court and a jury, a verdict for defendant Klee, and judgment thereon. A motion for a new trial was overruled, and plaintiff presents the cause here by petition in error.

The record discloses that, some time prior to December 28, 1900, Charles W. Norton, who was a son-in-law of defendant Klee, sought employment with the Singer Sewing-Machine Company at Omaha, but found that a condition of employment was a fidelity bond acceptable to the com[385]*385pany. He made application to plaintiff company for a bond, but was told by it that it could not bond him unless he could indemnify them against loss. It appears that, as a reslult of his negotiations with plaintiff, the indemnity bond set out in plaintiff’s reply Avas executed, signed by Norton and defendant Klee. In December, 1900, it appears that Norton was discoArered to be short in his accounts with the Singer Sewing Machine Company in the sum of $88, and that company accordingly made a demand upon plaintiff, by virtue of its bond to the company. This sum Avas, thereupon, paid to the Singer Sewing Machine Company.

There seemed to have been some slight difference of opinion, betAveen the agents and managers of plaintiff, as to Avhether plaintiff should rely upon the bond given by Klee for indemnity, or secure notes signed by Klee covering the amount of the loss sustained by plaintiff by reason of Norton’s defalcation. It Avas, hoAvever, decided to arrange with Klee to give the notes. A meeting Avas accordingly arranged for at the office of plaintiff’s president. As to AA'hat took place at this meeting, there is a conflict in the testimony. The testimony on behalf of plaintiff is that Klee was willing to sign the notes, being doubtful only as to his ability to pay unless given plenty of time. That testimony also represents him as indignant with Norton because of the latter’s conduct, and as signifying his Avillingness to assist plaintiff’s officers in apprehending Norton and prosecuting him.

Klee’s version is substantially at variance with that of the plaintiff’s. From the reporter’s transcript of his testimony, it is almost painfully apparent that his knowledge of English Avas exceedingly limited, but it is sufficiently clear that- he came to the office of the plaintiff in response' to a request either by postal card or letter, and that he intended to bring Avith him a confidential friend, more familiar with the English language than he AAras, who it appears failed him in the last moment. He Avas unwilling to sign the notes. Something, it appears, was said about [386]*386sending his son-in-law to the penitentiary, and he was told that he had to sign the notes. It appears from his testimony that the threat of sending his son-in-law to the penitentiary operated on his mind and induced him to sign the notes, not so much because of a concern for his son-in-law, but rather as a result of contemplating the stigma that would attach to his daughter if her husband was imprisoned. Klee was cross-examined by- plaintiff at some length; but a perusal of the questions and answers does not make it clear that anything was added to, or detracted from, the substance of his testimony in chief.

The trial court gave the two following instructions:

“4. Under the admissions and allegations made in these pleadings, the only issue which you are called upon to try is this: Were the notes set out in plaintiff’s petition given by the defendant by reason of the threats of imprisonment of the said Charles W. Norton, made by the plaintiff or its agents to the defendant at the time said notes were given.
“5. The burden of proof in this case is upon the defendant and, after admitting the; signing and execution of the notes, before he can avoid the payment thereof, he must prove by a preponderance of the evidence that said notes were not given voluntarily by him, but were obtained from him by such threats and duress as to overcome his will and understanding.”

In addition to the above the trial court instructed the jury in the following language:

“You are instructed that duress, in order to avoid the payment of these notes, must be such an influence exerted by the plaintiff upon the defendant as to overcome his will and compel a formal assent to an undertaking when he really does not agree to it, and make that appear to be his free act, which is not his but is another’s imposed upon bi-m through fear, which deprives him of self control. And, in this case, if you find that the defendant has proved by a preponderance of the evidence that he signed these notes, wholly and entirely on account of the fear which the plaintiff had created in his mind that his son-in-law, Charles W. [387]

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Bluebook (online)
97 N.W. 476, 70 Neb. 383, 1903 Neb. LEXIS 292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nebraska-mutual-bond-assn-v-klee-neb-1903.