Powers Elevator Co. v. Stolz

157 N.W. 693, 33 N.D. 628, 1916 N.D. LEXIS 117
CourtNorth Dakota Supreme Court
DecidedApril 10, 1916
StatusPublished
Cited by2 cases

This text of 157 N.W. 693 (Powers Elevator Co. v. Stolz) 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
Powers Elevator Co. v. Stolz, 157 N.W. 693, 33 N.D. 628, 1916 N.D. LEXIS 117 (N.D. 1916).

Opinions

Burke, J.

On the 5th of April, 1910, the Northern Real Property Company sold upon contract a half section of land to the defendant Stolz for $7,506.84. Among the provisions of that contract was one that Stolz was to pay certain instalments — usually $600 — the first of each November thereafter, until the purchase price had been reduced to a $1,750 mortgage, which was at that time an encumbrance upon the place. The contract contained the further provision that if the payments were not made and the contract was forfeited, all of the payments made and all of the buildings and improvements should he taken and deemed to be rental for the use and occupation of said premises from the date of the contract to the date of its termination. The first payment was to he $500, and was covered by additional security in the shape of a chattel mortgage. Stolz’s copy of the contract was not to be delivered to him until he had paid this $500 note. Stolz went into possession of the land and incurred an indebtedness of $395.50 for building materials purchased of the Powers Elevator Company, for which they filed a lien upon the premises. An examination of the evidence convinces us that the land company knew nothing about this indebtedness until almost a year after the lien was filed. On the 30th of January, 1913, Stolz was in default, having failed to malee any of the payments stipulated, and owing at that time considerably over $8,000 upon his contract. Upon that date the land company sent one Still to the village of Medina to make settlement of the claim. The negotiations were conducted in the hank at that place of which the [632]*632cashier was one Stege. Stege, Still, and Stolz were witnesses at the trial and each has given a version of the conversation. Mr. Still was acting under written instructions from the land company, and upon several occasions the president of the land company was called upon over the long-distance telephone, and he also has testified. From all of this testimony we are agreed that in the negotiations Still insisted that the first note of $500 upon which there was additional security be paid, and that then Stolz should be allowed to remove two small buildings from the place, cancel the contract, and receive back his notes marked paid. Stolz requested the land company to take care of the mechanic’s lien, but Still insisted that he was acting under written instructions, and had no authority to assume this obligation, under exhibit 10, which is directed to him, signed by the president of the land company and reads as follows:

Jamestown, N. D., February 12, 1913.

N.-J — 3—138—69

N.E.J — 35—139—69

Mr. S. W. B. Still,

City,

Dear Steve:—

In compliance with our arrangement of to-day we hand you herewith note of William Stolz for $500, dated April 5, 1910, due Nov. 1, 1910, drawing interest at 6 per cent per annum from date until due, 12 per cent thereafter until paid. Interest payable Nov. 1, 1910, and annually thereafter. Interest not paid when due to bear interest at the rate of 12 per cent per annum until paid.

This is only one of a number of notes given for the purchase price of the N.-J of 3 — 138—69, the total price being $5,756.84, the only payments made being $100 applied on account of the whole deal, the-proportion of which applied on this note would be about $8. No other payment has been made on this note.

This is secured by the chattel mortgage upon cattle, copy of which we handed you to-day. We wish to collect this note or take the cattle and conduct the necessary foreclosure proceedings to do so.

We also hand you herewith notice of cancelation to be served personally on Stolz if he can be found, and if not at his residence, the [633]*633same as a summons is served. This refers to the N.E.¼ of 35—139—69, another quarter which he has purchased from us.

The matter is turned over to you to handle, with the understanding that if foreclosure proceedings are carried through that it will spoil four days’ time for you, and that in that case your compensation is, to be $25 over and above actual and necessary expenses. In case the matter is settled in a way that it does not require very much attention, compensation to you to be proportionately reduced.

Tours truly,

W. B. De Nault,

President.

Still testifies that his instructions were to collect the $500 from the chattel security and cancel the contract, — that Mr. Stege acted for Stolz and consulted with an attorney before the settlement was finally made. Still denies having assumed the lien. Mr. Stege — among other things — testifies that his bank had- furnished Stolz with money to buy seed and feed and other things, and that when Still came up to make the settlement he (Stege) acted as interpreter for Stolz. That after considerable negotiations it was finally agreed that Stolz was to pay the $500 note and surrender his contract. That the land company in writing authorized the removal of the two frame buildings aforesaid, and that all other buildings were to remain on the property.

He further testifies:

A. I told Mr. Still the Powers Elevator Company held a lien against the buildings on that place, also they had Mr. Stolz’s note secured by a chattel mortgage, and that they would have to take care of the lien, and if he would not do so, they should turn the note back to Mr. Stolz without any consideration. Mr. Still said, “We will take care of that.” Then it was agreed that we would pay this $500 and interest.

Mr. Stege’s testimony is undoubtedly honestly given, but upon his whole testimony his recollection appears vague and unsatisfactory.

Stolz testifies as follows:

Q. At the time that you signed this paper, exhibit E, what did Mr. Still, for the defendant Northern Beal Property Company, agree you should have in return for this cancelation ?

[634]*634Á. I wanted to take all of the buildings off, but he allowed me to take off only the summer kitchen and the bam.

Q. What was said about the mechanic’s lien on the other building at that time ?

A. I could not very well say. The talk was in English. I could not understand, but Mr. Stege will tell you about that when he comes to Jamestown.

De Nault, the president of the land company, testifies that he had given specific instructions to Still in writing. That Stege called him up over the telephone from Medina, and asked him if he would be responsible for the mechanic’s lien, and that he told him that he would not. Upon the whole testimony we have no hesitancy in holding, as did the trial court, that there was no agreement on the part of the land company to assume this indebtedness. The conversation in the bank culminated in the surrender of the contracts as aforesaid. This was effected by an instrument in writing signed by Stolz and his wife. This action was brought by the lumber company to foreclose its mechanic’s lien, and, among other relief, asked that the land company be required to set forth its claim to the real property, and that they be decreed to have no interest superior to the lien of plaintiff. Defendant answered with a general denial setting up all of the facts in reference to their title, and asking that the title of the said defendant land company be quieted to such claim of the plaintiff, and that plaintiff be forever barred and enjoined from asserting the same.

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Cite This Page — Counsel Stack

Bluebook (online)
157 N.W. 693, 33 N.D. 628, 1916 N.D. LEXIS 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powers-elevator-co-v-stolz-nd-1916.