Rydeen v. Collins

220 Minn. 374
CourtSupreme Court of Minnesota
DecidedJuly 13, 1945
DocketNo. 33,949
StatusPublished

This text of 220 Minn. 374 (Rydeen v. Collins) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rydeen v. Collins, 220 Minn. 374 (Mich. 1945).

Opinions

Peterson, Justice.

Respondent filed a claim for a promissory note for $5,000 against decedent’s estate, which, was disallowed by the probate court. On appeal, the district court reversed the probate court and ordered the claim allowed. The appeal is from the judgment.

Appellant challenges the finding of fact, without which the judgment cannot stand, that there was a consideration for the note, and the conclusion of law that the note was a valid claim against decedent’s estate, even though it had not been presented for payment to decedent or, prior to the filing thereof, to appellant as his personal representative. It is also claimed that the trial court erred in denying a neiv trial upon the ground of newly discovered evidence.

Respondent’s statement of facts and law in the district court showed that her claim was based on a promissory note, dated June 27, 1940, payable to her on demand and purporting to have been executed and delivered by decedent. The note recites a “value received” and that it bore interest “before and after maturity.” Appellant by answer denied the execution of the note and that there was “any consideration whatsoever” for it. Thus, the issues were whether the signature on the note was genuine and whether there was a total want of consideration. Although respondent’s testimony, as we shall show, was to the effect that the note was given partly as compensation for her services and partly as a gift, no attempt was made to show that a particular part was for services and another as a gift. In other words, there was no attempt to apportion the amount of the note between compensation and gift. On the contrary, the issue made and litigated by the parties was whether there was any consideration at all and not whether there was a partial want of one. According to the issue, the consideration, or the want of it, was single and entire and went to the note as a whole. It was a case of a consideration or none at all. Here, as below, the parties make the same contentions.

Respondent’s evidence showed that on June 27, 1940, decedent executed the note in question and delivered it to her; that she had [376]*376prepared the note at the office, where she was employed, and took it for signature to decedent at the hospital where he was then confined, and that he signed it “William 21. Hore.” She testified further that the note was not “exactly” a gift, but that “it probably was a gift and compensation for my services.” It appears that shortly after decedent’s wife, died he commenced to court respondent and that they became engaged to marry each other. Her companionship afforded him consolation and encouragement. For a period of about ten months she devoted about five or six hours a day doing work for him, consisting of taking care of various matters for him, getting and delivering his mail, writing and sending checks to pay his bills, and taking care of him to some extent.

The value of respondent’s services was not shown. Nor was it shown that decedent deemed them to be of a greater or less value than the amount of the note. It appears without dispute that they were valuable. Appellant, who acted as decedent’s attorney, testified that decedent had said that he had every confidence in respondent; that she had been of “invaluable help” to him following his wife’s death in straightening out his affairs and in other ways; and that he (appellant) had recommended to respondent’s then attorney to accept $500 in settlement for the services.

Appellant attempted to show that-the signature was not genuine. There was no direct contradiction of respondent’s version that decedent signed the note. The evidence to establish that the signature was not genuine consisted of opinions based upon comparisons of the signature on the note and admittedly genuine specimens of his signature on checks and other notes. These were signed “Wm. M. Hore.” A petition filed by decedent in his wife’s estate signed “William M. Hore” was also produced. So far as we can tell, the signature on the note is identical with those produced. The trial judge apparently was of that view.

The trial judge found that the note was given for a valuable consideration ; that it was unpaid, and that it was a valid and subsisting claim against decedent’s estate; and ordered judgment that the claim be allowed by the probate court. After the findings of fact [377]*377and conclusions of law were filed, appellant moved for a new trial upon the ground of newly discovered evidence consisting of testimony of two handwriting experts in St. Paul of whom he claims to have had no knowledge prior to the trial, and who would give opinions upon a retrial, if one was granted, that the signature on the note is not genuine. The motion was denied.

The finding that the note was given for a valuable consideration is sustained by the evidence. Under N. I. L. § 25 (Minn. St. 1941, § 335.131 [Mason St. 1927, § 7068]), an antecedent or preexisting debt constitutes value, whether the instrument is payable on demand or at a future time: The evidence supports the finding that decedent was indebted to respondent for the services in question. It is undisputed that respondent rendered the services at decedent’s request and that they were valuable. No claim is made here that the services are presumed to have been rendered gratuitously because of the fact that the parties stood in the relationship of fiance and fiancee. See, Kramer v. Bins, 205 Wis. 562, 238 N. W. 407; 71 C. J., Work and Labor, § 41. The giving of a promissory note for personal services is evidence that the services were rendered upon the understanding that they should be paid for, even where the parties stand in a relationship from which it would be presumed otherwise that the services were gratuitous, and in such a case the services are a sufficient consideration for the note. Petty v. Young, 43 N. J. Eq. 654, 12 A. 392; Sutch’s Estate (No. 1), 201 Pa. 305, 50 A. 943. Personal services rendered under such circumstances that there is a legal obligation to pay for them constitute sufficient consideration for a note given for them, regardless of their economic value as compared to the amount of the note. In other words, while the services may be a sufficient consideration, they need not be an adequate one. Adequacy in fact, as distinguished from value in law, is exclusively for the determination of the parties. Clark’s Appeal from Commissioners, 57 Conn. 565, 19 A. 332; Foxworthy v. Adams, 136 Ky. 403, 124 S. W. 381, 27 L.R.A. (N.S.) 308, Ann. Cas. 1912A, 327; Rightor v. Aleman, 4 Rob. (La.) 45; Citizens Nat. Bank v. Custis, 155 Md. 173, 141 A. 556; Earl v. Peck, 64 N. Y. 596; Worth [378]*378v. Case, 42 N. Y. 362; Rauschenbach v. Estate of McDaniel, 122 W. Va. 632, 11 S. E. (2d) 852; 7 Am. Jur., Bills and Notes, § 234. In the cited cases, the notes greatly exceeded in amount the market value of the services for Avhich they Avere given. In Earl v. Peck, supra, the court said (64 N. Y. 599) : “If the intestate chose to pay for the services rendered a much larger sum than they Avere Avorth, he had a right to do so. The note Avas not a gratuity or gift.” Similar statements are found in the other cases cited. Standing alone, the services Avere a sufficient consideration for the Avhole note.

This is not a case, hoAvever, Avhere the sole consideration for the note was personal service. Here, according to respondent’s own testimony, part of the consideration was a gift. A promise to pay made as gift is Avithout consideration and is not binding. There is a partial want of consideration for the part of a note represented by the gift. Williams v.

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Bluebook (online)
220 Minn. 374, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rydeen-v-collins-minn-1945.