Schlapkohl v. Schlapkohl

194 Iowa 330
CourtSupreme Court of Iowa
DecidedSeptember 19, 1922
StatusPublished
Cited by1 cases

This text of 194 Iowa 330 (Schlapkohl v. Schlapkohl) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schlapkohl v. Schlapkohl, 194 Iowa 330 (iowa 1922).

Opinion

Arthur, J.

I. Plaintiff and defendant are brothers. Their father, in distribution of his estate, had given and conveyed to Herman Schlapkohl, plaintiff, 240 acres of land, and plaintiff, by the arrangement of his father, was to and did execute to his brother, O. D. Schlapkohl, two notes in the total amount of $27,000, one note for $12,000 and one for $15,000, to effect division of the property between these two sons. Defendant was not satisfied with the arrangement, which, he claimed, was not an equal'division (on account of the land’s being valued too cheaply), and the brothers became estranged, and did not speak. When defendant received the notes, he placed them in th Farmers State Bank of Clutier, with M. A. Caslavka, cashier, for collection. The notes were dated July 3, 19.19. There is no controversy about the $12,000 note. The $15,000 note signed by Herman Schlapkohl read:

[331]*331“$15,000 Dysart, Iowa, July 3, 1919.

“March 1, 1920 after date, for value received .... promise to pay O. D. Schlapkohl or order, fifteen thousand no/100 dollars with interest at the rate of eight per cent per annum from due until paid, payable annually,” etc.

On March 1, 1920, the day the $15,000 note was due, the plaintiff appeared at the bank to pay it. The cashier presented the note, and demanded payment of the principal, .with interest from the date of the note, July 3, 1919. The defendant had told the cashier that he claimed interest on the note from its date, and directed the cashier to collect interest on it. The defendant was present in the bank, without conversation with his brother, but within hearing distance of his brother and the cashier, when the cashier demanded payment of interest on the note. The plaintiff paid to the cashier the principal of the two notes and interest on the $15,000 note from July 3, 1919, to March 1, 1920, in the sum of $740, and took up his notes.

This action was brought to recover the $740 interest money paid on the $15,000 note. Plaintiff alleged that he paid the principal of the $15,000 note and $740 interest thereon, and that the defendant had received such payments; that the sum of $740 interest did not belong to the defendant, but was the property of plaintiff; and that “the payment of said sum of $740 was an error and mistake,” resulting from a computation of interest at 8 per cent on the $15,000 note from July 3, 1919, to March 1, 1920, when, in fact, the said note was not to draw interest, and did hot by its terms draw interest.

Answering, defendant, in addition to a general denial, alleged the arrangement whereby the note was given; that he was dissatisfied with the arrangement, and deemed the same unfair and unequal; that the plaintiff was receiving a much larger share of the estate than he was; that the plaintiff was advised of defendant’s dissatisfaction regarding the division of property; that a controversy arose between plaintiff and defendant regarding the liability of the plaintiff to pay interest on the $15,000 note; that he (defendant) understood, at the time of the transaction, that he was to have interest upon the note from its date, and that the note provided for the payment of [332]*332interest from date; that it was doubtful to both the plaintiff and the defendant, at the time, whether the note provided for interest from date or from its due date, by reason of the manner in which it was written, both plaintiff and defendant having inspected the note, plaintiff claiming that the note was not to bear interest, and that it was written so as not to call for interest until the principal was due: but that, by way of settlement of the controversy, and for the purpose of putting an end to the controversy, the plaintiff had paid the interest, and the defendant received the same in settlement of the said controversy; that, whether the note, in fact, provided for interest from maturity only or from its date (the fact being at the time in controversy), the payment of interest made by plaintiff was a voluntary payment, in settlement of said controversy; and that plaintiff was estopped from recovering said payment.

Under the issues thus made, the case went to trial to a jury. When both parties had rested, plaintiff moved that a verdict be directed in his favor for $740 and interest thereon at 6 per cent, on the grounds that the evidence failed to show any matter to be in controversy between the parties, at the time the $740 interest payment was made; that the evidence failed to show that any dissatisfaction which the defendant claimed he had with the transaction was ever brought to the knowledge or notice of plaintiff; that the evidence submitted by both parties sustained the claim made by plaintiff that the interest payment of $740 was made by mistake, and wholly failed to sustain the defense of voluntary payment on the part of plaintiff by reason of some existing controversy between the parties at the time, and failed to show any grounds of estoppel against plaintiff, to prevent his recovery.

The motion was sustained. By direction of the court, the jury returned a verdict for plaintiff for $740, with 6 per cent interest thereon from March 1, 1920, and judgment was entered on the verdict, from which judgment this appeal is taken.

II. Appellant’s assignments of error are that the court erred in sustaining the motion to direct a verdict, because the jury could have found from the evidence that the plaintiff did not make the interest payment by mistake; and because the jury could have found from the evidence that there was a contro[333]*333versy between, tbe parties, at tbe time of payment, as to wbetber tbe note bore tbe interest demanded, and that plaintiff knew that tbe note did not bear interest, bnt paid tbe interest voluntarily, in settlement of tbe controversy.

Three witnesses testified to matters of tbe transaction: tbe parties and M. A. Caslavka, cashier of tbe Farmers State Bank, where tbe notes were paid.

Plaintiff testified that be lived on tbe 240-acre farm given to him by bis father, as tenant of bis father, 11 years before his father deeded it to him; that bis brother was to have $27,000 out of tbe farm for bis share; that such arrangement was made in July, 1919, by bis father; that be was present, but that bis brother was not present when tbe arrangement was made; that he bad paid $6.00 an acre rental for the farm for the years 1919 and 1920, and before that, bad paid $3.00 an acre; that, after his father bad arranged tbe division, in July, 1919, between him and bis brother, by giving him the land and requiring him to pay bis brother $27,000, be bad a tall?; with his brother, and bis brother was not satisfied with tbe division; that bis brother then asked him if be would pay tbe whole amount on March 1, 1920, and he arranged to pay both notes on March 1, 1920, and paid them; that be did not talk with bis brother about interest on the notes; that bis dealing in tbe payment of tbe notes and interest was with Caslavka, cashier of tbe bank; that, when be went to the bank to pay tbe notes, Caslavka, cashier, said that one note was drawing interest; that be told Caslavka be did not think so, because be was there when they were made, and they were made without interest to tbe 1st of March; that Caslavka said, “You got to pay that interest, — you can’t get out of it;” and that be paid it; that, tbe next day, he went to F.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Winn v. Williams
205 N.W. 541 (Supreme Court of Iowa, 1925)

Cite This Page — Counsel Stack

Bluebook (online)
194 Iowa 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schlapkohl-v-schlapkohl-iowa-1922.