Olsgard v. Lemke

156 N.W. 102, 32 N.D. 551, 1916 N.D. LEXIS 125
CourtNorth Dakota Supreme Court
DecidedJanuary 10, 1916
StatusPublished
Cited by10 cases

This text of 156 N.W. 102 (Olsgard v. Lemke) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Olsgard v. Lemke, 156 N.W. 102, 32 N.D. 551, 1916 N.D. LEXIS 125 (N.D. 1916).

Opinion

Fisic, Ch. J.

This is an appeal from an order denying plaintiff’s [554]*554motion for judgment non obstante veredicto or for a new trial, and also from the judgment of dismissal. Plaintiff seeks to hold defendant B. W. Lemke liable on a certain $2,700 note, upon the theory that, while conceding and alleging that about the date of its maturity his name was affixed thereto by another without authority, he fully ratified the unauthorized act and has estopped himself from denying liability. In support of the alleged ratification, plaintiff relies upon a certain-letter written on November 22, 1909, by said Lemke .to plaintiff’s counsel, Frich & Kelly, as follows:

Dear sirs:—
While in your office sometime ago, you told me that you held that Olsgard note for collection. Now, what I would like to have you do if at all possible, is to have Mr. Olsgard consent to carry the note till November 1, 1910. The note, I think, draws 10 per cent interest. Considering the old, antiquated, and out-of-date machinery which he .sold Fred in part; the interest is too much. Fred, of course, signed for me also, but I am not trying to shirk the obligation, which in reality would be no obligation on my part. I have already paid $500 on the .note; and if you can get Mr. Olsgard to extend the note another year at 8 per cent interest, we will secure it with a collateral note signed by Will, Henry, and myself. Have already paid out over $5,000, and that is about all I want to pay this year. Most of those fellows were in no great hurry nor very particular while Fred was in business, and they had ought to be just a little considerate now. Hoping that you are meeting with success in the final windup of the Heavener mix-up,
I am, very respectfully,
(Signed) B. W. Lemke.

In support of the alleged estoppel of respondent Lemke to question his liability on such note, appellant relies upon the alleged fact that at or about the date of the maturity of such note the same was presented to Lemke for payment, and he paid thereon the sum of $500 without questioning his liability, and in other ways by his conduct led plaintiff to believe that he was liable, and plaintiff acted on such belief to his prejudice.

The cause was tried to a jury, and at the close of the evidence plain[555]*555•tiff moved, for a directed verdict -apon the principal ground that the sending of the letter above quoted constituted a ratification, and effectually fastened liability upon B. W. Lemke for the payment of the note. The trial judge denied such motion, and such ruling constitutes appellant’s principal assignment of error.

Appellant’s counsel state that, as to the issue of liability through ■estoppel, there was a conflict in the evidence; and they concede that were this the only issue they would rest content with the verdict. But they strenuously contend that the trial court erroneously restricted the issues, and that it should have submitted to the jury the broad issue as to whether respondent had, by his representations and conduct, pre■cluded himself from setting up want of authority or forgery as a defense to the note. In support of this contention they refer to § 6908, Comp. Laws 1913, and argue that its provisions uphold their contention. This section reads: “Where a signature is forged or made without authority of the person whose signature it purports to be, it is wholly imperative, and no right to retain the instrument, or to give a discharge therefor, or to enforce payment thereof against any party thereto, can be acquired through or under such signature, unless the party against whom it is sought to enforce such right is precluded from setting up the forgery or want of authority.”

On the other hand, counsel for respondent contend that the word '“precluded” as used in such statute has no broader meaning than the Word “estopped,” and that the former as therein employed is synonymous with the lattter. In support of this construction they direct our .attention to the definitions of the words “estoppel” and “preclude” as given in the Century Dictionary, also to the definition of “estoppel” given in Bouvier’s Law Dictionary as “the preclusion of a person from asserting a fact, by previous conduct inconsistent therewith, on his ■own part or the part of those under whom he claims.” To these we add the definition of the verb “estop” as given in Bunk & Wagnall’s New 'Standard Dictionary, as follows: “To preclude from averring in an action what is contrary to prior acts or admissions.” Counsel for respondent assert that, under the word “precluded” as used in the statute, the issues both of ratification and adoption were not excluded, but were properly submitted to the jury in so far as those issues involved the [556]*556elements of estoppel. ' The instructions to the jury on this phase of the case were as follows:

“I charge you, therefore, that if you find by a fair preponderance of the evidence, as I shall hereafter explain that term to yon, that the defendant B. W. Lemke, by remaining silent when he should have spoken, or by his acts or by declarations, whether oral or written, led the plaintiff to believe he had signed the note in suit, or that he had authorized the signature or would pay this note, and that the plaintiff has acted on such belief, and has suffered, or may be made to suffer, some material injury, loss, or detriment with respect to such note, or the enforcement thereof, your verdict will be for the plaintiff for such sum as may be due thereon at this time, if you further find from the evidence, by a like preponderance, that any sum is due upon the note. So, in this case, if B. W. Lemke so acted or conducted himself, or so spoke, or remained silent when it was his duty to speak, and knew or had reason to know that Mr. Olsgard might rely on his conduct, acts, speech, or silence, and Mr. Olsgard did so rely, and because of such has parted with property or security which he held against Fred Lemke, or Fred Lemke doing business as Lemke Brothers Implement Company, to secure the indebtedness sued on in this action, and B. W. Lemke would be estopped to deny his liability, and would be found to pay this note, even though he never signed it nor authorized his signature.”

We are satisfied that the above instruction fully and fairly embraced the entire issues which were proper for submission to the jury.

In the first place, we do not construe the above-quoted statute as including ratification or adoption as used exclusively in their primary sense; hut only when they involve some of the elements of an estoppel. As respondent’s counsel very clearly point out in their printed brief, there is a wide distinction between these terms as used in their primary sense and as used when they involved some of elements of an estoppel. This distinction is made clear by the Colorado court in Smyth v. Lynch, 7 Colo. App. 383, 43 Pac. 670, and the authorities cited on page 673 of the opinion. See also McArthur v. Times Printing Co. 48 Minn. 319, 31 Am. St. Rep. 653, 51 N. W. 216; Capps v. Hensley, 23 Okla. 311, 100 Pac. 515, and cases cited; also 31 Cyc. 1246.

Secondly, the issues raised by the pleadings do not include an alleged liability either through a ratification or adoption excepting as they [557]*557involve some of the elements of an estoppel. This, we think, is quite clear from the pleadings, and is an all-sufficient answer to appellant’s contention on this point.

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Bluebook (online)
156 N.W. 102, 32 N.D. 551, 1916 N.D. LEXIS 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olsgard-v-lemke-nd-1916.