Rushlight v. MacLain

182 P.2d 62, 28 Wash. 2d 189
CourtWashington Supreme Court
DecidedJune 19, 1947
DocketNo. 30028.
StatusPublished
Cited by13 cases

This text of 182 P.2d 62 (Rushlight v. MacLain) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rushlight v. MacLain, 182 P.2d 62, 28 Wash. 2d 189 (Wash. 1947).

Opinion

Abel, J.

Plaintiff brought suit on three negotiable promissory notes, payable on demand, executed by defendant in Seattle, where defendant was then a resident. The first two notes were executed in 1937, and the last note on February 7, 1938. The first and second notes were payable to plaintiff, and the last note was payable to A. G. Rush-light & Company, a corporation, of which plaintiff was president. Plaintiff had endorsed the first two notes over to this company; however, all of the notes were endorsed to plaintiff for collection just prior to the time this suit was brought.

The notes grew out of the business association of plaintiff and defendant, which lasted during a period of eight or nine years prior to the bringing of this suit. During this *191 period, defendant worked for plaintiff in various capacities, and they were associated in several unprofitable business ventures.

Defendant was a resident of the state of Washington until some time in 1943, and was then absent and resided in the state of Oregon for a period of two years, during which time he was employed by plaintiff or plaintiff’s company.

Just prior to the bringing of this action, defendant brought suit in the state of Oregon for a balance of wages claimed to be due him, in which case A. G. Rushlight & Company, plaintiff’s assignor, was the defendant. In that suit, A. G. Rushlight & Company set up as a first affirmative defense the execution of the three notes involved in this case, and alleged plaintiff’s promise that he would pay the notes out of his earnings from the corporation when he went to work for it, the corporation’s reliance on such promise, his failure to pay them, and his assertion that the notes were outlawed by the Oregon statute of limitations; and that, in good conscience and equity, plaintiff is estopped from maintaining that action against the corporation.

No affirmative relief was asked in the Oregon case on the notes; however, in the instant case, defendant claims that these notes are pleaded as an “offset” in the Oregon case, and plaintiff takes the position that they are pleaded as constituting an estoppel in the Oregon action.

Defendant introduced evidence to show that the three notes were paid and were to be canceled, and that plaintiff was to pay defendant fifteen hundred dollars, in addition, as the purchase price of 25,050 shares of the stock of the Manganese Mining & Manufacturing Company. This transaction took place some time in December, 1941, and plaintiff did pay to defendant fourteen hundred dollars, in several payments, during that period. Certificate No. 81, of the Manganese Mining. & Manufacturing Company, for 25,050 shares, was issued on,December 17, 1941, to H. A. McLain and was endorsed on the back, on the same date, by H. A. McLain, in which endorsement he says, “For value received, I hereby sell, assign and transfer unto W. A. Rushlight, 25,050 shares . . . ” A similar certificate for *192 425 shares was issued to H. A. McLain on the same date and bears the same endorsement.

The third note was lost. However, no contention was raised concerning the execution of this note, and plaintiff introduced in evidence a written assignment of the note from A. G. Rushlight & Company.

The trial court held that the first note was outlawed, but that the second and third notes were not outlawed, that they had not been paid, and entered judgment for plaintiff.

Defendant has appealed and makes twelve assignments of error; however, these are argued under four separate heads. The first is appellant’s contention that the notes have been paid in full; second, that respondent is not the owner of the notes by reason of the fact that his assignor pleaded the identical notes in the Oregon suit, which case is now pending and in which case appellant is the plaintiff; that, because of pleading these notes in the Oregon suit, title to the notes has at all times remained in respondent’s assignor; third, that the notes are barred by the statute of limitations; and fourth, that the statute of limitations had run against these notes in the state of Oregon and respondent could not have successfully sued on them in that jurisdiction because of this, and, in view of Rem. Rev. Stat., § 178 [P.P.C. § 73-49], no suit is maintainable on them in the state of Washington.

This court has often said that the findings of the trial court on conflicting evidence will not be disturbed unless the evidence clearly preponderates against the findings. However, as held in Romano Engineering Corp. v. State, 8 Wn. (2d) 670, 113 P. (2d) 549, this court has never refused to reverse a trial court when convinced that the evidence was preponderate^ against its findings.

In a suit upon a promissory note, the burden of proof is upon the maker to show payment, when its execution and delivery have been admitted. Federal Rubber Co. v. M. M. Stewart Co., 180 Wash. 625, 41 P. (2d) 158.

Appellant argues that the facts showing payment preponderate against the trial court’s findings, and he lays *193 considerable stress upon the testimony of respondent, wherein he said “No” in answer to the question, “Was that assignment of the stock given at your request to secure these obligations?” We have examined the testimony, and it is apparent that respondent and his counsel did not consider this testimony to be in reference to the fourteen hundred dollars. From a reading of respondent’s testimony, it is not at all clear to us what he was referring to. Respondent had taken a contrary position all through the trial, and appellant’s counsel should have cross-examined respondent and made his testimony clear, if appellant were going to take the position that respondent had completely changed his testimony in this one statement. We have examined the testimony carefully and find that the evidence does not preponderate against the trial court’s findings.

The second question is whether respondent is the owner of the notes, by reason of the fact that his assignor pleaded the identical notes in the Oregon suit, which case is now pending and in which case appellant is the plaintiff. In passing upon this question, we call attention to the words used in respondent’s answer in the Oregon case. After setting forth the notes, he alleges that:

“Plaintiff should not in good conscience and equity be permitted to maintain this action, and Plaintiff should be and is estopped to maintain the same.”

No affirmative relief is pleaded in the Oregon case by reason of these notes. Plowever, in the event appellant should be estopped from maintaining the action in Oregon by reason of these notes, then that in itself would amount to affirmative relief, for the prayer asks that the case be dismissed. We have, then, a situation where a party sets out certain notes as a defense to an action in the state of Oregon, and, at the same time, he or his assignee, who stands in his shoes, maintains an action upon the identical notes in the state of Washington.

In support of his contention, appellant cites 31 C. J. S. 372, to the effect that it is well settled that a party who has knowingly and deliberately taken a particular position in *194

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Bluebook (online)
182 P.2d 62, 28 Wash. 2d 189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rushlight-v-maclain-wash-1947.