Perkins Oil Co. v. Davis

157 So. 417, 153 So. 417, 228 Ala. 190, 1934 Ala. LEXIS 182
CourtSupreme Court of Alabama
DecidedMarch 1, 1934
Docket8 Div. 573.
StatusPublished
Cited by9 cases

This text of 157 So. 417 (Perkins Oil Co. v. Davis) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perkins Oil Co. v. Davis, 157 So. 417, 153 So. 417, 228 Ala. 190, 1934 Ala. LEXIS 182 (Ala. 1934).

Opinion

KNIGHT, Justice.

Suit by holder of a promissory note against an accommodation indorser. The rights of a bona fide holder, in due course, before maturity, are not involved. Under the pleadings and evidence in the case, any defense open to the defendant as against plaintiff’s assignor, is equally available to him against the plaintiff. Code, § 9084; Fortson v. Bishop, 204 Ala. 524, 86 So. 399.

The plaintiff’s case is stated in count 2, in which the note is set out in full, including the indorsement upon the back of the note, under which defendant’s name is signed.

The defendant filed quite a number of pleas, somé of which were subsequently stricken, upon his motion, and to some of which demurrers were sustained. The plaintiff, having been cast in the suit, here complains of a number of the rulings of the trial court. Assignments of error numbered 9, 10, 11, 12, and 13 present for review the action of the court in ’overruling certain grounds of appellant’s demurrer to pleas A and 6.

In his brief, appellant argues only the first and fourth grounds of his demurrer to plea A. He submits no argument to show the insufficiency of plea 6.

Under our uniform ruling, we will here consider only those grounds of demurrer which are argued, and will treat as 'waived, or abandoned, the demurrer to plea 6. St. Louis-S. F. R. Co. v. Kimbrell, 226 Ala. 114, 145 So. 433; Fhutvoye et al. v. Chuites et al., 224 Ala. 458, 140 So. 432; Howell v. Moon, 217 Ala. 421, 116 So. 518.

The defendant’s plea A appears in the report ¡of the case, and we deem it here unnecessary to restate it. We do not think this plea subject to the defect poiixted out in either the first or fourth ground of demurrer.

It must be kept in mind that the plaintiff’s rights under the note were no greater or better than those of its assignor, the Tuscumbia Oil Mill, and if the defense asserted by the defendant under its plea A would be available to him in an action by the Tuscumbia Oil Mill, it was and is equally open to him in this suit.

In the case of Jefferson County Ravings Bank v. Compton, 192 Ala. 16, 68 So. 261, 262, in an opinion by the late Justice Somerville, it was said:

"“Whex’e the terms of a written contract are not thex’eby varied or contradicted, it is always competent, as between the immediate parties, to show the real consideration for a promissory note, axxd to show by pax-ol evidence the terms and conditions upon which it' is payable, or by which payment may be avoided. Barlow v. Flemming, 6 Ala. 146; *192 Corbin v. Sistrunk, 19 Ala. 203; Self v. Herrington, 11 Ala. 489; Booth v. Dexter Co., 118 Ala. 369, 379, 24 So. 405.
“Proof of any condition attached to the payment of this note, and of its nonfulfillment, could be properly made in defense of this suit, provided, of course, that notice thereof was fastened upon the plaintiff, and that the pleadings were appropriate.”

In the Jefferson County Savings Bank Case, supra, a suit was brought upon a promissory note made by Compton for a certain share of capital stock in the Planters’ Cooperative Stores Company. This note was transferred to the Jefferson County Savings Bank, and the latter brought suit thereon against the maker. The evidence showed that defendant bought the stock from the payee of the note, but it was agreed that the note was not to be paid unless the payee’s business became a paying proposition; if it¡ did, the note was to be paid, and the stock issued to the defendant; if not, the note should be returned to the defendant. It was in evidence that the payee failed and went into bankruptcy. The court held that the defendant could assert this defense to defeatj the action on the note under proper pleading.

The fact must not be lost sight of that the defendant in this action is setting up a collateral parol agreement, not only on the part of the makers of the note, but also of the payee, touching and concerning the same matter as that of the note, and which does not vary or contradict the writing. The defendant brings forward by his plea a collateral agreement of the Tuscumbia Oil Mill with the defendant, by which it assumed on its part, in consideration of, and as an inducement to defendant’s indorsement of said note, certain obligations or duties of the defendant touching the note, that is, it was to receive and apply the proceeds of cotton seed delivered to it by the Snoddys during that year in payment of said note, that it had a contract with the Snoddys to that end, and that thereafter the Snoddys did in fact deliver an amount of cotton seed to the payee more than sufficient to pay said note. The defendant, by its plea, does not attempt to vary or contradict his contract, but asserts that under the contract he had with the payee, said note had been discharged.

We are not unmindful of the fact that in order to let in evidence of a collateral agreement between the parties, such agreement must be entirely consistent with the terms of the written instrument, and if the evidence tends to vary or contradict the writing, or to defeat its operation, it would be inadmissible. 22 O. J. 1248.

In the case of Barlow v. Flemming, 6 Ala. 146, the plaintiff sued on a promissory note given for a horse. The contract for the sale of the horse was not in writing.- In that case, this court held that it was competent to prove by parol that the -note was to be returned if the horse died.

In our recent case of Bell, Rogers, etc., Bros. v. Jenkins, 221 Ala. 652, 130 So. 396, 397, this court, while recognizing the rule that parol evidence was inadmissible to varj or contradict the terms of a written contract, had this to say with respect to a collateral parol agreement about the same subject-matter: “But it is equally well settled that evidence of a collateral parol agreement about the same matter as that of the writing, but which does not vary or contradict the writing, is admissible upon proper pleading. Middleton v. Ala. Power Co., 196 Ala 1, 71 So. 461; Roquemore v. Vulcan Iron Works, 151 Ala. 643, 44 So. 557; Maness v. Henry, 96 Ala. 454, 11 So. 410; Jefferson County Sav. Bank v. Compton, 192 Ala. 16, 68 So. 261; Mid-Cont. Life Ins. Co. v. Beasley, 202 Ala. 35, 79 So. 373.”

In that case, it was claimed by the defendant that the payee of the note, and mortgagee of the crops, agreed at the time of taking the note and mortgage given as the price of seed and fertilizer to make the crop, that he would purchase the potatoes when ready for market at market price. The court held the defendant could show this agreement, though resting in parol, and that the reception of such evidence did not violate the rule that parol evidence is not admissible to vary or contradict the terms of a written contract.

There is nothing in the case of Holczstein et al. v. Bessemer Trust & Savings Bank, 223 Ala. 271, 136 So. 409, which conflicts with the holding in the above-cited cases. The pronouncement in the Holczstein Case is sound, and abundantly supported by the authorities. But the defense set up in that case by the defendant to defeat the action is quite different from the defense set up in this, ease.

Nor is there any conflict in the holdings in the case of Bell, Rogers, etc., Bros. v. Jenkins, supra, and our -more recent case of Gafford v. Tittle et al., 224 Ala. 605, 141 So. 653. In the latter case the defendant, an indorser, undertook to set up a collateral parol agreement

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Bluebook (online)
157 So. 417, 153 So. 417, 228 Ala. 190, 1934 Ala. LEXIS 182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perkins-oil-co-v-davis-ala-1934.