Pendleton v. Greever

1920 OK 350, 193 P. 885, 80 Okla. 35, 17 A.L.R. 317, 1920 Okla. LEXIS 136
CourtSupreme Court of Oklahoma
DecidedNovember 23, 1920
Docket9806
StatusPublished
Cited by7 cases

This text of 1920 OK 350 (Pendleton v. Greever) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pendleton v. Greever, 1920 OK 350, 193 P. 885, 80 Okla. 35, 17 A.L.R. 317, 1920 Okla. LEXIS 136 (Okla. 1920).

Opinion

PITCHPORD, J.

Prior to the 22nd day of September. 1910. plaintiffs in error were engaged as partners in conducting a bank known as the Waggoner Banking Company, at Vernon, Texas. The Texas-Oklahoma Grain Company was conducted in the same town.by one Hugh Greever, as manager, a brother of the defendant. The stock in the grain company was owned by Hugh Greever, his wife, and another brother of the defendant. The grain company had become indebted to the banking company in a large sum. Upon settlement and after assigning to the bank the assets of the grain company, there was still due the bank the sum of $5,000. W. W. Greeyer, the father of Hugh Greever, paid the bank $2,000 in cash and with the defendant executed the note sued on.

The execution of the note was admitted by the defendant, who. assumed th.e burden of proof and sought to defeat recovery by relying upon section 8 of his answer, -which is as follows:

“And for further answer to the plaintiff’s petition this defendant says, that said note is null and void for the reason that it was executed in pursuance of a contract and agreement which was against public policy and void, under the following circumstances, to wit: That at the time the said note was executed, the plaintiffs were alleging that one Hugh Greever, who is the son of W. W. Greever, had committed an offense against the laws of the state of. Texas, in that he had defrauded plaintiffs and misappropriated funds -of a corporation of which he was an officer, and the said plaintiffs were threatening to prosecute him for said alleged offenses, which' constituted felonies undter the laws of the state of Texas, said plaintiffs agreeing with the said Hugh Greever and with W. W. Greever and this defendant that if they would sign the note herein sued on that the plaintiff would cover up and quash said prosecution and excuse the said Hugh Greever from his crime and that said note was signed in pursuance of said agreement and there was no other consideration for the same; that said agreement was and is contrary to public policy and that by virtue of said fact, said note is wholly void;”

W. W. Greever testified in behalf of the defendant that he met Mr. Hicks, the cashier of the bank, together with some of the directors, in the office of Mr. Cook, who was the attorney for the banking company; that threats were there made by the representatives of the bank that Hugh Greever would be prosecuted for dissipating and embezzling the funds of the grain company unless the indebtedness to the bank was adjusted; that it was finally agreed that if W. W. Greever would pay $2,000 cash and execute his note for $3,000 with the defendant as surety, Hugh Greever would not be prosecuted. W. W. Greever further testified that he was instructed at the time to go to Frederick, Oklahoma, where the defendant resided, and see whether the defendant would sign the note with him, and they promised “if I could get Charlie to sign the note with me, the matter would be settled, and promised they would release Hugh and not prosecute him.” He further testified that he went to Frederick and stated to the defendant the threats that bad been made to prosecute Hugh and the promise not. to prosecute if the defendant would sign the note. The defendant corroborates W. W,. Greever as to what occurred at Frederick.

It is the contention of the plaintiffs that, in order for the defendant to be relieved of liability, as no indictment had been returned and no prosecution was pending at the time of the execution of the note, it was necessary for him to allege and prove that a crime, the prosecution of which had been threatened against Hugh Greever, had actually been *36 committed, and that there was a positive agreement, either expressed or implied, to stifle the prosecution of the same; and cite us to a number of authorities. We have carefully examined the authorities cited, but decline to follow the rule therein enunciated. In a criminal prosecution for the offense of compounding a felony, the injury is primarily to the public and it is apparent why it should be required,- in the absence of an indictment or a pending prosecution, to allege and prove that a felony had actually been committed.' Evidently -the authorities cited -by plaintiffs followed this rule in civil actions of this nature.

We are of the opinion that it is more in keeping with modern conceptions of right dealings between individuals that, in order to render a contract voidable on the ground that its sole consideration was the suppression of a prosecution, the crime charged need not have been committed, and one should not be encouraged to obtain a promise upon the threat to accuse of a felony as in the instant ease and afterwards avoid the consequences by showing that there was no felony committed as a matter of fact.

In the case of Koons v. Vauconsant, 129 Mich. 200, 88 N. W. 630, 95 Am. St. Rep. 438, the court said:

“The arrangement, then, was to all intents and purposes an agreement to compound an alleged felony. It may be said that they thought there was no forgery, and perhaps there was none, and that, therefore, no felony was really compounded; but one cannot obtain a promise upon a threat to accuse of a felony and afterward avoid the consequences and make the consideration legal by showing that, there was no felony committed as a matter of fact. If the minds of these parties met upon the consideration, it was that there should be no prosecution for a crime which both understood defendant’s representatives to assert. There is some confusion on the subject of duress, and it may be due in part -to the unnecessary attempt to invalidate such contracts as this upon the ground of duress. It is evident that there are few husbands, wives, parents, or children who would not make a heavy sacrifice to avert punishment to their immediate relatives, and this is so natural that few blame them. Yet the law punishes those who compound a felony. As a consideration for an undertaking, a promise not to prosecute a felony is illegal and void. No other consideration appears here. The moral obligation would, perhaps, support a promise, if it entered into the transaction. There is not only no evidence that it did, but the clearest evidence that it did not. It is right that men should pay their debts, and not culpable for creditors to collect by legitimate means and methods; hut making merchandise of the criminal law is not a lawful method.”

In the case of Beal-Doyle Dry Goods Company et al. v. Barton (Ark.) 97 S. W. 58, the Supreme Court of Arkansas lays down the same rule in the following language:

“It is not necessary for a party to be under arrest and actually in the course of being prosecuted, in ¡order to enable a party who secures the dismissal or termination of the prosecution for a moneyed consideration, to plead thé illegality of such consideration in bar of its collection. Mr. Beach says: ‘A contract, the consideration of which, in whole or in part, is the suppression of a criminal prosecution, is without any legal efficacy, either as a cause of action or as a defense to an action not founded on or arising out of the agreement.’ 2 Beach on Modern Contract, sec. 1651. Contracts to suppress evidence or in any way interfere with the course of justice, whether within the terms of any statute or not, are against public policy and void. See note on page 121, Henderson v. Palmer 22 Am. Rep. 117; Peed v. McKee, 42 Iowa, 689, 20 Am. Rep. 631.

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Cite This Page — Counsel Stack

Bluebook (online)
1920 OK 350, 193 P. 885, 80 Okla. 35, 17 A.L.R. 317, 1920 Okla. LEXIS 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pendleton-v-greever-okla-1920.