Segar v. Bailey

154 P.2d 520, 62 Ariz. 93, 1944 Ariz. LEXIS 89
CourtArizona Supreme Court
DecidedDecember 11, 1944
DocketCivil No. 4693.
StatusPublished

This text of 154 P.2d 520 (Segar v. Bailey) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Segar v. Bailey, 154 P.2d 520, 62 Ariz. 93, 1944 Ariz. LEXIS 89 (Ark. 1944).

Opinion

STANFORD, J.

This action was brought in. the superior court by appellee against the appellant, who had assigned to him four promissory notes from J. B. Graham. The notes were each for $500. ■. .

*95 Prior to his action and while Graham was still the owner of the notes, he brought an action on the first of the four notes. The notes were all dated June 18, 1940, and the maturity of the first one was August 1, 1940. Suit was brought on it August 30th of that year. Summons was issued the same date and the return of the sheriff shows receipt of summons August 30th, but the return was dated February 12, 1942, setting forth that he was unable to locate Segar, the defendant in the action.

For each note in the instant case a separate cause of action is set out in the complaint. The case was tried without a jury and findings and judgment were rendered in favor of appellee on August 2, 1943.. From such judgment this appeal is taken.

We believe the six assignments of error complained' of by the appellant can be covered by the following: (1) As to the cause of action brought by J. B. Graham against this appellant before the filing of this case, the trial court erred in denying the motion to dismiss because of another action pending and undetermined; (2) that appellee was not the real party in interest; (3) that there was no consideration for the delivery of the notes in question to the assignee, the appellee herein; (4) that the notes were executed and delivered under duress; (5) that the trial court failed to make findings as to whether or not the appellee was the only party in interest; (6) that costs for witness J. B. Graham should have been disallowed because he was a part owner of the notes and therefore a necessary party to the action.

In reference to the question of another action pending, our Code, Sec. 21-320, reads as follows:

“Abatement if summons not served in one year.— An action shall abate if the summons be not issued and served, or the service thereof by publication com *96 menced within one (1) year from the filing of the complaint. ’ ’

Section 21-301, Arizona Code Annotated 1939, reads:

“Commencement of action. — A civil action is commenced by filing a complaint with the court.”

The present action was filed in the superior court of Mohave County on May 22, 1943. The records of that court show, relative to the dismissal of this action on note due August 1, 1940, the following: “January 18, 1943, certificate of dismissal by abatement. ’r'

Considerable has been submitted as to the fact that the first action filed by Graham against the appellant was pending at the filing of this action in the superior court and therefore this present action could not be had against the appellant on the first cause of action for which suit was brought by Graham. We hold that the minute entry of January 18, 1943, disposes of the first action.

The second contention of appellant is that Bailey, the appellee, is not the real party in interest in the' case. $500 was paid on May 12, 1943, and $600 was paid on account of the notes on July 1, 1943, to Graham by Bailey. The total consideration that was to be paid by plaintiff Bailey for notes was $1800. The appellee was to pay the balance of $700 when the suit was settled.

Our "Code, Section 21-501, reads:

“Real party in interest. — Every action shall be prosecuted in the name of the real party in interest; but ‘ an executor, administrator, guardian, trustee of an express trust, a party with whom or in whose name a contract has been made for the benefit of another, or a party authorized by.statute may sue in his own name without joining with him the party for whose benefit the action is brought; and when a stat *97 ute of the state so provides, an action for the use or benefit of another shall be brought in the name of the state.”

The case of Mosher v. Bellas, 33 Ariz. 147, 264 Pac. 468, 369, reads in part as follows:

“It cannot be questioned that the assignee of a chose in action is, under the law, the legal owner of it and as such entitled to sue for its collection. Sroufe v. Soto Bros. & Co., 5 Ariz. 10, 43 Pac. 221; Leon v. Citizens’ Building & Loan Ass’n, 14 Ariz. 294, 127 Pac. 721, Ann. Cas. 1914D, 1151. ...”

On the third point raised that there was no consideration for the giving of the notes, Sec. 52-121, our Code, reads as follows:

“Consideration to maker and signer presumed— Value defined. — Every negotiable instrument is deemed prima facie to have been issued for valuable consideration, and every person whose signature appears thereon to have become a party thereto for value.

“Value is any consideration sufficient to support a simple contract. Any antecedent or pre-existing debt constitutes value, and is deemed such whether the instrument is payable on demand or at a future time.”

The question that arises is what benefit did Segar get for giving these notes? The contract given at the time of giving the notes says there should be terminated two certain contracts theretofore entered into between Graham and this appellant, and the agreement recites:

“That for and in consideration of the cancellation and annulment of those two (2) certain contracts heretofore entered into by and between the parties hereto, and bearing dates of Sept. 21, 1939 and October 13, 1939, respectively, one being a development contract and the other a production contract, and for other good and valuable considerations running from each party hereto to the other party hereto, it is *98 hereby mutually understood and agreed as follows, towit: ”

We see no merit to this contention of the appellant.

As to the next assignment of error, that the notes and contract were signed under duress, we quote the following from the evidence of appellant:

“The Witness: Well, the threat against me was not made against me over what had happened. He, Graham, was angry; he was not normal.'

“Mr. Elmer: Q. What was that? A. He said he would beat the Hell out of me.
“Q. About what? A. Because things had not gone well. ’ ’

It appears from the evidence that the appellant needed an experienced mining man to do the work about the Silver Hill Mine near Chloride, Arizona, and he inquired of Mr. Ben Griffith, an attorney of California, and also a friend of appellant, and Griffith recommended Graham.

The evidence also shows that when the difficulty arose between the appellant and Graham that Attorney Griffith was in Kingman, the county seat of Mohave County, and Griffith drew the contract whereby the notes were turned over.

Appellant further testified:

“Q.

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Related

Lundvall v. Hughes
65 P.2d 1377 (Arizona Supreme Court, 1937)
Mosher v. Bellas
264 P. 468 (Arizona Supreme Court, 1928)
Sroufe v. Soto Bros.
43 P. 221 (Arizona Supreme Court, 1896)
Leon v. Citizens' Building & Loan Ass'n
127 P. 721 (Arizona Supreme Court, 1912)
Kline v. Kline
128 P. 805 (Arizona Supreme Court, 1912)
Barrett v. French
1 Conn. 354 (Supreme Court of Connecticut, 1815)

Cite This Page — Counsel Stack

Bluebook (online)
154 P.2d 520, 62 Ariz. 93, 1944 Ariz. LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/segar-v-bailey-ariz-1944.