Starke v. Wannemacher

156 N.W. 494, 32 N.D. 617, 4 A.L.R. 167, 1916 N.D. LEXIS 135
CourtNorth Dakota Supreme Court
DecidedFebruary 5, 1916
StatusPublished
Cited by13 cases

This text of 156 N.W. 494 (Starke v. Wannemacher) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Starke v. Wannemacher, 156 N.W. 494, 32 N.D. 617, 4 A.L.R. 167, 1916 N.D. LEXIS 135 (N.D. 1916).

Opinion

Christianson, J.

This action was brought to recover upon a promissory note in the sum of $1,500, which it is alleged was executed [620]*620and delivered by tbe defendant to the Missouri Slope Brick & Tile Company for a valuable consideration, on or about March 30, 1908, and thereafter sold and assigned to the plaintiff for a valuable consideration. The answer interposed the defenses of (1) want of consideration; (2) failure of consideration; (3) nondelivery of the note; and (4) that the plaintiff was an attorney at law, duly admitted to practice and practising his profession in the state of North Dakota, and that he purchased the note with other choses in, action from the said Missouri Slope Brick & Tile Company for the purpose of bringing suit thereon, and that hence the purchase was champertous, and plaintiff barred from maintaining the action. The latter defense was first tried to the court without a jury. The court held that the plaintiff’s purchase of the note was not champertous, and that plaintiff had a right to maintain the action. A jury was thereupon impaneled, and the other issues were submitted to the jury, which returned a verdict in favor of the plaintiff. Judgment was entered pursuant to such verdict. Defendant did not move for a new trial, but, some time subsequent to the entry of judgment, moved for judgment notwithstanding the verdict. The appeal is taken from the judgment and from the order denying defendant’s motion for judgment notwithstanding the verdict.

Appellant makes no specification of insufficiency of evidence, but presents for our consideration certain errors of law.' A number of s\xcli assignments, however, have been abandoned, and the only errors argued in appellant’s brief, and, hence, the only ones which we shall consider are: (1) Was the plaintiff’s purchase of the note in question champertous and void under the laws of this state? (2) Was defendant entitled to a directed verdict upon the grounds of nondelivery of the note or want or failure of consideration thereof? We will consider these propositions in the order stated.

(1) The note sued upon was given by the defendant to Missouri Slope Brick & Tile .Company for fifteen shares of stock in such company. The stock was purchased through the agency of one Kalman. At the time the note was given, the defendant also purchased ten shares of stock in the same company, owned by Kalman. The defendant executed and delivered his two notes, one for $1,000 for the ten shares of stock purchased from Kalman, and one for $1,500 for the fifteen shares of stock purchased, from the Missouri Slope Brick & Tile Company [621]*621(the latter being tbe note involved in this action). Kalman testified that he sold the stock, prepared the note involved in this action, and that the defendant, Wannemacber, signed it in his presence.

He further testified:

Q. And what was that note given for ?
A. Eor $1,500 worth of stock in the Missouri Slope Brick & Tile Company.
Q. Was there any understanding or agreement as to what was to be done with the stock?
A. The stock was to be held as collateral on the note.
Q. That is, Mr. Wannemacher was not to have the stock until he paid the note ?
A. No, that says on the face of the note.
Q. I call your attention to some writing in the lower left-hand corner of the note as follows: ‘Secured by Mo. Slope B. & T. Company stock No. —’ and ask you in whose handwriting that is ?
A. That’s in my handwriting.
Q. And when was that put on there ?
A. At the time this note was made.
- Q. At the same time that Mr. Wannemacher gave this “Exhibit E,” the note for $1,500, did he purchase any other stock besides this of the Missouri Slope Brick & Tile Company?
A. He did.
Q. How many shares?
A. Ten.
Q. Who owned that ten shares ?
A. I did.
Q. Bid he give you a note for that?
A. I don’t rpmember now which it was, but I think it was.
Q. Was it understood between you and Mr. Wannemacher that tbe stock could be issued and held as security for the note?
■ A. Yes, sir.

The defendant paid the thousand dollar note and received the canceled note and the ten shares of stock. Subsequently in 1910, the Missouri Slope Brick & Tile Company became insolvent and a receiver [622]*622was appointed. On April 5, 1913, the receiver, pursuant to the order of the court, offered for sale and sold at public auction all the remaining assets of the company, consisting of twenty-four accounts, notes and judgments against various parties, including the note involved in this, action, and 16,850 miscellaneous bricks. All of such assets were purchased by the plaintiff at such receiver’s sale.

Appellant contends that defendant’s purchase of the note was champertous and void under the provisions of §§ 9412 and 9417 of the Compiled Laws of 1913. These sections read as follows: “Every attorney who, either directly or indirectly, buys or is interested in buying any evidence of debt or thing in action, with intent to bring suit thereon, is. guilty of a misdemeanor.” Comp. Laws 1913, § 9412.

“The provisions of §§ 9412, 9414, and 9416 relative to the buying of claims by an attorney, with intent to prosecute them, or to the lending or advancing of money by an attorney in consideration of a claim being delivered for collection, shall apply to every ease of such buying, a claim, or lending or advancing money, by any person prosecuting a suit or demand in person.” Comp. Laws 1913, § 9417.

The only evidence on the question of champerty was the testimony of the plaintiff himself.

On being called by the defendant for cross-examination, under the statute, he testified in part as follows:

Q. How did you purchase this note ?
A. I purchased this note at a sale which was advertised in the Dickinson Press, of the assets and uncolleetable accounts of the receiver of the Missouri Slope Brick & Tile Company, at public auction at the,front door of the courthouse in Dickinson.
Q. And was the note delivered to you at that time ?
A. No.
Q. Did you buy any other choses in action at that time ?
A. I bought a number of accounts at that time.
Q. And you expected to sue on them when you bought them, if necessary, for collection ?
A. I expected that if I couldn’t collect them otherwise probably suit would be necessary on some of them.
[623]*623Q. And in pursuance of your intent to sue, if necessary, you brought this action ?
A. Yes.
Q. Did you ever demand this of Mr. Wannemacher before bringing suit ?

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Bluebook (online)
156 N.W. 494, 32 N.D. 617, 4 A.L.R. 167, 1916 N.D. LEXIS 135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/starke-v-wannemacher-nd-1916.