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Pappas v. Hauser

197 N.W.2d 607, 1972 Iowa Sup. LEXIS 828
CourtSupreme Court of Iowa
DecidedMay 11, 1972
Docket54945
StatusPublished
Cited by23 cases

This text of 197 N.W.2d 607 (Pappas v. Hauser) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pappas v. Hauser, 197 N.W.2d 607, 1972 Iowa Sup. LEXIS 828 (iowa 1972).

Opinions

UHLENHOPP, Justice.

The governing issue here is whether an alleged subscription to a college was, or was not, intended to be obligatory.

A number of residents of Charles City, Iowa, became enthusiastic about founding a college of considerable size. They worked with Dr. Millard G. Roberts, who had experience in such matters. They employed professional fund-raisers, and in particular one Peter J. Bruno. They caused Charles City College to be incorporated and they put on a fund drive.

Until the college was in operation and tuition was collected, the only source of funds was pledges. The original pledge form stated, “It is my intention to contribute the sum of $_ to the College Founders’ Fund.” The form also recited, “This is a statement of intention and expectation and shall not constitute a legal obligation and shall not be legally binding in any way.”

Money was needed to build and equip the physical plant as well as to pay personnel. The college promoters discovered that they could not obtain credit on the original pledge form. After consideration, they redrafted the form by dropping the statement that the pledge was not a legal obligation and by making the form read thus:

I/we intend to subscribe to the College Founder’s Fund the sum of
_Dollars.
I intend to pay: [ ] Monthly [ ] Quarterly [ ] Semi-Annually [ ] Annually over 36 months beginning- or as follows:-

Near the end of the fund drive and after the college had incurred indebtedness and was in operation, Peter J. Bruno approached defendant Carl F. Hauser for a pledge of $5,000. Eventually Bruno came down to $3,000. The redrafted pledge form was then in use. Before Hauser signed the pledge form, he and Bruno had a discussion about its meaning. Regarding that discussion, the parties before us stipulated at the trial of this action that Hauser’s testimony was as follows :

I asked Mr. Bruno, what if I should die, have a financial reversal or the College should fail ?
Mr. Bruno said, “this is only an intent and not binding and if anything like this should happen you just forget it.”
Mr. Bruno said “well, this (referring to the pledge card) is only an intent and is not binding and if some of these things would happen to you just forget about it.”

The parties also stipulated:

It is further stipulated and agreed by and between the parties to this action that the testimony of Carl F. Hauser quoted above may be taken by this Court to be true and relied upon accordingly.

After the discussion quoted, Hauser signed the pledge form. Herewith we set out a copy.

[610]*610

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Bluebook (online)
197 N.W.2d 607, 1972 Iowa Sup. LEXIS 828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pappas-v-hauser-iowa-1972.