Ohio Finance Co. v. Greene

76 Ohio Law. Abs. 424
CourtOhio Court of Appeals
DecidedMarch 28, 1956
DocketNo. 3830
StatusPublished
Cited by1 cases

This text of 76 Ohio Law. Abs. 424 (Ohio Finance Co. v. Greene) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio Finance Co. v. Greene, 76 Ohio Law. Abs. 424 (Ohio Ct. App. 1956).

Opinion

OPINION

By PHILLIPS, PJ.

On August 12, 1952, plaintiff finance corporation loaned defendant $700.00 secured by his cognovit promissory note of even date payable in twenty equal monthly installments, on which he allegedly defaulted when the balance due on such note was $632.12. On July 30, 1954, plaintiff secured judgment against defendant in the Municipal Court of Youngstown for that amount and interest on the cognovit provision of his note.

As alleged by defendant’s answer on November 16, 1954, defendant filed a voluntary petition in bankruptcy in which plaintiff claims he listed nine creditors to whom he represented he owed $1017.19, and, as alleged in defendant’s answer, on February 1, 1955, he was duly and regularly discharged as a bankrupt.

[425]*425On August 22, 1955, plaintiff filed proceedings in aid of execution in he Municipal Court of Youngstown and attached defendant’s wages. 3y answer, which the trial judge interpreted as a motion, defendant alleged his discharge in bankruptcy on February 1, 1955, and prayed for lismissal of plaintiff’s order in aid of execution, and that his wages paid nto court be returned to him.

Plaintiff filed a motion to strike defendant’s motion from the files irging that defendant’s motion was a collateral attack upon a good mpaid judgment and contrary to the procedure of the court in which lied and federal and state courts of Ohio.

The trial judge overruled plaintiff’s motion, dismissed the order in fid of execution, and refused to permit plaintiff to introduce evidence Df fraud or misrepresentation for the purpose of establishing that the original obligation evidenced by the note was excepted from discharge in bankruptcy.

Plaintiff appealed from the action of the trial court to this court >n questions of law.

By assignments of error, not all of which were argued and accordingly will not be disposed of, plaintiff maintains:—

“1. That the judgment of the court in overruling plaintiff’s motion is contrary to law.
“2. That the judgment of the court, wherein the court ordered the attachment released filed by the plaintiff in pursuance to a judgment obtained, is contrary to law.
“3. That the judgment of the court on the motion filed by the plaintiff without giving the plaintiff an opportunity to be heard is prejudicial to this appellant.
“4. That the court erred prejudicially to the rights of this plaintiff in entertaining the motion of the defendant and releasing the attachment without having acted upon same, and that the judgment stands in full force and effect.
“5. For any other errors committed by the court which occurred during the hearing of the motions as shown by the original papers.”

Plaintiff states by brief:—

“It is our contention that the court erred prejudicially to the rights of this appellant in entertaining the motion of the defendant and releasing the attachment without having acted upon the motion of the defendant and the judgment hereinbefore obtained in the Municipal Court of Youngstown, so that we can consolidate all the errors into one proposition; that the order made by the court is contrary to law and is prejudicial to the rights of this plaintiff.
“* * * for the defendant to avail himself of the defense of a bankruptcy discharge, it is incumbent upon the defendant to file the proper pleadings, that is by way of a motion within term to suspend the judgment or a petition after term from date when judgment is obtained, and tender an answer stating the defense of discharge and pray for a stay of execution until the case is finally determined upon the merits.
“* * * that the state court does not take judicial notice of bankruptcy proceedings in the federal court.”

[426]*426While there is no evidence to support its claim plaintiff contendí that in a financial statement furnished by defendant to plaintiff finance corporation for the purpose of securing such loan of $700.00 defendant listed two creditors to whom he represented he owed $280.00, and stated in his own writing that he owed “no other bills” when in fact he had other obligations amounting to $1017.19, and that such financial statement was materially false.

In the case of Ohio Finance Company v. Greathouse, 64 Abs 1, this court said in the third syllabus:—

“Where a discharge in bankruptcy did not relieve a defendant from liability on his promissory note because the debt for which tha note was given was created in reliance upon a materially false statement in writing made by defendant for the purpose of obtaining such credit from plaintiff, plaintiff may bring his action in contract and plead defendant’s tort by way of reply to defendant’s answer setting up the discharge in bankruptcy.”

In the body of the opinion in that case Nichols, J., pertinently observed:—

“It will be kept in mind that defendant was charged with knowledge that this fraudulently incurred indebtedness was not dischargeable in bankruptcy. Certainly plaintiff in the Municipal Court was not required to anticipate that defendant would assert the defense of discharge of a non-dischargeable debt. Defendant having asserted such discharge, plaintiff need only deny the same in its reply, which it did and alleged ihe reasons for such denial. Defendant cannot decide for plaintiff the nature of the cause of action. Nor can defendant change plaintiff’s cause of action by alleging matters defensive thereto. Having attempted to avail himself of a discharge in bankruptcy, which was denied, it was incumbent upon defendant to prove an effective discharge, since he admitted the execution and delivery of the note. Defendant simply failed upon the proof of his alleged defense, although he may have established a prima facie defense by the introduction of his certificate of discharge together with evidence of this debt having been listed in his schedule of debts and that notice thereof was had by plaintiff. Such prima facie defense was effectively rebutted by the facts alleged in plaintiff’s reply and established upon the trial wherein no prejudicial error has intervened.
“This court as now constituted has previously held thrat the same procedure as followed in this case was proper. See opinions in the cases of The Ohio Finance Company, Plaintiff-Appellee, v. Charles E. Wilson, et al, No. 1003, Trumbull County, The Ohio Finance Company. Plaintiff-Appellee, v. Luigi Valle, Defendant-Appellant, No. 2942, Mahoning County.
“The authorities upon which we rely are numerous and include: Gregory v. Williams, 106 Kan. 819, 189 Pac. 932, in which the situation was identical with that in the instant case. Many cases are cited by the Kansas Court in support of its decision. Hisey v. Lewis-Gale Hospital, D. C., 27 F. Supp. 20, 40 Am. Bankruptcy Reports (n. s.) 206. Wieczorek v. Merskin, 1944, 308 Mich. 145, 13 N. W. (2d) 239.
“The cited cases also refer to other authorities.”

[427]*427In the case of The Ohio Finance Company, v. David W. Waller, Ma-íoning unreported Appeal Number 2822, this court, speaking through fudge Carter, said:—

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Public Finance Corp. v. Ockerman
200 N.E.2d 808 (Ohio Court of Appeals, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
76 Ohio Law. Abs. 424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-finance-co-v-greene-ohioctapp-1956.