Ryan v. Ryan

295 P.2d 1111, 48 Wash. 2d 593, 1956 Wash. LEXIS 396
CourtWashington Supreme Court
DecidedApril 5, 1956
Docket33232
StatusPublished
Cited by23 cases

This text of 295 P.2d 1111 (Ryan v. Ryan) 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
Ryan v. Ryan, 295 P.2d 1111, 48 Wash. 2d 593, 1956 Wash. LEXIS 396 (Wash. 1956).

Opinion

Weaver, J.

Plaintiff appeals from a judgment dismissing his action for twenty thousand dollars.

For a number of years, Ryan Furniture Company and Grote Rankin Furniture Company, in Seattle, were owned and operated by three brothers, Joseph H. Ryan (plaintiff), Frederick A. Ryan, and William E. Ryan (defendants), under an oral partnership agreement. Plaintiff managed the Grote Rankin Furniture Company.

January 8, 1954, the partners signed a written dissolution agreement which, in so far as it is pertinent to our inquiry, fixed the liquidating cash value of the partnership assets at two hundred seventy thousand dollars and provided that “the cash value of each of the three shares is Ninety Thousand ($90,000.00) Dollars.” The dissolution agreement further provided:

“That Joseph H. Ryan [plaintiff] shall receive as his share Seventy Thousand ($70,000.00) Dollars in cash upon *595 the execution of this Agreement, together with a promissory note of Frederick A. Ryan and William E. Ryan [defendants] in the sum of Twenty Thousand ($20,000.00) Dollars, payable one year from the date hereof with interest at four percent (4%) per annum.”

Defendants were to continue the furniture business.

Defendants pleaded and offered evidence, which the trial court admitted, that on November 17, 1953, plaintiff, with the consent of his brothers, had drawn twenty thousand dollars cash from the Grote Rankin Furniture Company as the initial payment on his share of the partnership assets. Defendants contend that this sum, together with the fifty-thousand-dollar check plaintiff drew on January 8, 1954 (the date the dissolution agreement was signed), paid plaintiff in full for his share of the partnership assets. The promissory note has been paid.

Plaintiff argues that the dissolution agreement of January 8, 1954, is plain, clear, and unambiguous; that the consideration expressed is more than a mere recitation — it is contractual in character; that evidence of the alleged twenty-thousand-dollar initial payment on November 17, 1953, varies the terms of a written instrument by parol and extrinsic evidence and is inadmissible.

Where the consideration consists of a specific and direct promise by one of the parties to do certain things, this part of the contract can no more be changed or modified by parol evidence than any other part. A party has the right to make the consideration of his agreement the essence of the contract. When this is done, the provision, as to consideration, stands on the same plane as other provisions of the contract. They are conclusive and immune from attack by parol or extrinsic evidence.

In Union Machinery & Supply Co. v. Darnell, 89 Wash. 226, 154 Pac. 183 (1916), the court illustrated this principle by quoting from Jackson v. Chicago, St. Paul & Kansas City R. Co., 54 Mo. App. 636, 644 (1893), as follows:

“Suppose the consideration in a deed should be: ‘In con- . sideration of the sum of one thousand dollars to be paid to me in beef cattle weighing not less than one thousand two *596 hundred pounds each, at five cents per pound.’ Would it be contended that a consideration thus expressed contractually could be orally shown to be other than as expressed?
“But money may also be contracted for as the consideration in a written contract. And when the intention to so contract is disclosed by the written instrument, no other or additional consideration can be shown. Thus, suppose that the consideration was stated in the written contract to be ‘one thousand dollars to be paid as follows: Two hundred dollars in six months from date without interest; four hundred dollars in twelve months from date with three per cent, interest; and four hundred dollars in eighteen months from date with ten per cent, interest from maturity; all to be secured by a mortgage’ on certain described property. Could it be shown in contradiction to this that the consideration agreed upon was fifty head of cattle or an additional sum of money? Clearly not. The reason is that it has been contracted otherwise by the parties and that contract has been reduced to writing.”

The proffered evidence does not tend to vary the written agreement. It does not change the amount of the contracted consideration nor change performance from one method to another. On the contrary, it recognizes the efficacy of the contract and tends to prove, if believed, that the contract was performed according to its terms.

Plaintiff’s actions disclose that ft was not the intent of the parties that he receive “cash” for his interest when the dissolution agreement was signed. Instead, he received the “equivalent of cash” when he drew his own check for fifty thousand dollars on January 8, 1954. Did he receive any other “equivalent of cash”?

There is no explanation in the record why plaintiff withdrew twenty thousand dollars from Grote Rankin Furniture Company account on November 17, 1953, except his testimony that he drew it “because I wanted $20,000.” Previous to this, none of the partners had ever drawn a substantial sum, in excess of the amount drawn by the others, except one time when one of them purchased an automobile. This particular withdrawal was equalized at the end of the year.

Contrary to the general practice of former years, plain *597 tiff’s twenty-thousand-dollar withdrawal of November 17, 1953, was not equalized among the parties at the end of the fiscal year. Prior to any dispute among the partners, defendant Fred Ryan informed the accountant in charge of the partnership books that the twenty thousand dollars was the initial payment on the dissolution of plaintiff’s partnership interest. It was posted in .the partnership books as follows:

“Deferred Drawings
“Drawings Account — J. H. Ryan [plaintiff]
“To record initial payment to J. H. Ryan covering purchase of his partnership interest by F. A. & Wm. E. Ryan effective as of date 1/2/54.”

It appeared in the balance sheet of the partnership’s 1953 Federal income tax return as an asset, and in the accountant’s balance sheet as an asset described as a “deferred drawing.”

January 8, 1954, when the dissolution agreement was signed, a cancellation of plaintiff’s deferred drawing was effected, and it no longer represented a partnership asset. On that date, plaintiff received a twenty-thousand-dollar credit as truly as he received a fifty-thousand-dollar check “as cash” in payment of his partnership interest.

Is evidence of the twenty-thousand-dollar check inadmissible because it was delivered prior to the date of the written dissolution agreement? We think not.

We are supported in this conclusion by Harstad v. Olson, 57 Wash. 264, 106 Pac. 741 (1910). Therein, plaintiff argued that the parol evidence rule barred certain evidence that defendants had paid a portion of the agreed consideration. Subsequent to part payment, the parties had reduced their contract to writing, which provided that certain sums “were to be paid” upon completion of the work.

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Bluebook (online)
295 P.2d 1111, 48 Wash. 2d 593, 1956 Wash. LEXIS 396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryan-v-ryan-wash-1956.