Park v. Brandt

119 P. 877, 20 Idaho 660, 1911 Ida. LEXIS 138
CourtIdaho Supreme Court
DecidedNovember 25, 1911
StatusPublished
Cited by8 cases

This text of 119 P. 877 (Park v. Brandt) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Park v. Brandt, 119 P. 877, 20 Idaho 660, 1911 Ida. LEXIS 138 (Idaho 1911).

Opinion

STEWART, C. J.

This is an action upon a promissory note executed by respondents to McLaughlin Brothers, and by them indorsed and transferred to appellant. The complaint is in the ordinary form and alleges that the note sued upon was sold and delivered to the plaintiff for value before maturity, and that the plaintiff is now the owner and holder thereof. The answer puts in issue the allegations of the complaint, and affirmatively pleads fraud, want of consideration, breach of warranty and false representations on the part of McLaughlin Brothers in the inception of the note.

The cause was tried to a jury and a verdict rendered in favor of the respondents. Judgment was rendered in accordance with the verdict. This appeal is from the judgment and also from an order overruling the motion for a new trial.

Sixty-one errors are assigned, thirty-two of which errors relate to the ruling of the trial court in permitting certain questions to be asked plaintiff upon cross-examination. All of these errors were fully discussed and passed upon by this court in Park v. Johnson, recently decided by this court and reported ante, p. 548, 119 Pac. 52. In that ease the plaintiff was the same as in the case under consideration, and the note in suit was given in payment of the purchase of a stallion sold by the same McLaughlin Brothers, and the only difference in the two transactions is the names of the defendants, [664]*664and in the former case one Wood was the agent of McLaughlin Brothers, while in the case now under consideration one Byers was the agent who made the sale. The evidence, however, is practically the same. What this court said in that case applies in this case, and justifies this court in holding that the evidence in this case is sufficient to support the verdict of the jury and that the trial court committed no error in his ruling upon the questions asked the plaintiff upon cross-examination, and that such inquiries were proper cross-examination-and that the evidence was relevant, competent and proper.

In principle, we think the case of City National Bank v. Jordan, 139 Iowa, 499, 117 N. W. 758, and the ease of Citizens’ Savings Bank v. Houtchens (Wash.), 116 Pac. 866, support the decision of this court. These two cases to which reference has thus been made were cases in which the courts were dealing with promissory notes executed to the same McLaughlin Brothers who were payees of the note involved in this case, and were given under the same circumstances and in like cases as the case now under consideration. These cases are likewise supported in many of the questions involved by the following cases where the same McLaughlin Brothers were payees of the notes, and such notes were given under circumstances very much like the one now under consideration. (Hallowell v. McLaughlin Bros., 136 Iowa, 279, 111 N. W. 429; Union National Bank v. Winsor, 101 Minn. 470, 118 Am. St. 641, 112 N. W. 999; Hallowell v. McLaughlin Bros. (Iowa), 121 N. W. 1039.)

A reading of these cases will throw much light upon the transactions of the McLaughlin Brothers and their relationship with persons who had purchased promissory notes given to McLaughlin Brothers under the same circumstances and for like payment as the case now under consideration, and discuss many legal questions which are interesting and of value in such cases, and all of which we think clearly hold that promissory notes given under the circumstances discussed by this court in the cases of Winter v. Nobs, 19 Ida. 18, 112 Pac. 525, and Park v. Johnson, supra, and the present case, are tainted with fraud in their inception, and that a purchaser [665]*665of such notes under like circumstances is not a holder in good faith before maturity.

Assignments of error from 32 to 42 relate to the action of the court in allowing evidence in regard to fraudulent representations made by Byers, the agent of McLaughlin Brothers, made to defendants, at the time their signatures were procured to the note. We think the court did not commit any error in allowing this evidence. Byers was the agent of McLaughlin Brothers; it was he who negotiated the sale to the defendants, and it was his representations as the agent and representative of McLaughlin Brothers that induced the defendants to execute, the note sued upon; and it was perfectly proper to introduce evidence showing the representations made by Byers at the time the sale was made and the note was executed and their falsity, as McLaughlin Brothers were responsible for the representations made by Byers in the course of his employment and while acting as such agent; and the plaintiff in this case, as the purchaser of said note from McLaughlin Brothers, is bound by such representations the same as McLaughlin Brothers would be bound, provided the plaintiff was not a purchaser in good faith and before maturity, and this question was one for the jury to determine. (Shellenberger v. Nourse, ante, p. 323, 118 Pac. 508.)

Assignments of error Nos. 42 to 49, inclusive, relate to the action of the trial court in refusing to give certain instructions requested by the plaintiff. We shall not discuss these requested instructions. The cases of Winter v. Nobs, 19 Ida. 18, 112 Pac. 525, and Park v. Johnson, heretofore referred to, fully discuss the questions involved in these requested instructions, and we are satisfied that the trial court committed no error in refusing to give them.

Counsel for appellant contend that the trial court erred in adding to the definition of a holder in due course, as provided by the statute, certain explanations and modifications thereof. This same objection was urged in the case of Park v. Johnson, supra, and passed upon and the instruction disapproved, but held not prejudicial error, and the court again disapproves said instruction, but holds that the same was not [666]*666prejudicial error when taken into consideration with the other instructions given by the trial court.

Objection is also urged to instruction No. 14 given by the trial court. This instruction reads as follows:

“The court instructs the jury that in considering the question whether or not the plaintiff is a holder of the instrument sued on in good faith, you may consider the fact, if shown in evidence before you, as to whether or not the plaintiff has attempted to recover on the promissory note from the indorsers, that is McLaughlin Brothers, as he has a right to proceed against McLaughlin Brothers as the indorsers of the said promissory note to recover the amount due thereon from the indorsers.
“You may also consider as to whether of not, if given in evidence before you, the plaintiff knew or was acquainted with the defendants, or any of them.”

We have discussed in the case of Park v. Johnson, supra,

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Bluebook (online)
119 P. 877, 20 Idaho 660, 1911 Ida. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/park-v-brandt-idaho-1911.