State Bank v. Dronen

197 N.W. 150, 50 N.D. 583, 1924 N.D. LEXIS 8
CourtNorth Dakota Supreme Court
DecidedJanuary 26, 1924
StatusPublished
Cited by3 cases

This text of 197 N.W. 150 (State Bank v. Dronen) 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
State Bank v. Dronen, 197 N.W. 150, 50 N.D. 583, 1924 N.D. LEXIS 8 (N.D. 1924).

Opinion

Johnson, J.

This is an action on a promissory note executed by tbe defendants on October 11, 1919, in tbe sum of $5,700, and payable to the plaintiff October 15, 1920. The defendants A. E. Dronen and Nils Olson did not appear or answer in the trial court and judgment went against them by default. S. O. Dronen defended and a jury returned a verdict against him for the full amount of the note. From the judgment entered on the verdict, he alone appeals.

'Flic complaint is in the ordinary form. The defendant Dronen answered admitting the execution of the note, hut alleging, in substance, that the note was delivered to the plaintiff upon condition that the money should not be delivered to A. E. Dronen, for whose benefit S. O. Dronen and Nils Olson signed as sureties or accommodation makers, unless and until a deed to certain premises, to be purchased by A. E. Dronen, be made to them jointly. It appears that A. E. Dronen was desirous of purchasing a quantity of land, but that plaintiff required additional- signers to the note before it would loan the necessary money to him. The land in question belonged to an estate in process of pro[585]*585bate 'and the transactions were had with the executrix. It is further alleged in the answer that the plaintiff agreed to procure a second mortgage from the defendant A. B. Dronen, for the protection of the accommodation makers, but, without legal justification, failed to do so.

The evidence tends to show that on the loth of June, 191!), a note was executed by the defendants to the plaintiff in the sum of $5,TOO, duo and payable in the fall; that the defendant Nils Olson was a resident of Minneapolis and that it was necessary to mail the note to him for execution; that when all three had signed and on the 23rd day of June, 1919, the amount of $5,TOO was turned over by the plaintiff bank to the executrix of the estate as a cash payment upon the purchase price of the land sold to the defendant A. B. Dronen. The testimony of plaintiff’s witnesses tends to show that the executrix required this cash payment and that it was the desire and understanding of the parties and signers of the note that the payment be made in order that the purchaser might take possession of the land and put in the crop and farm it during the season of 1919; that upon no other condition would the executrix permit A. It. Dronen to go into immediate possession. It further appears that on October 11, 1919, the note executed on the 13th of June was surrendered to the makers and the bank accepted a note in the same amount, dated that day and due October 15, 1920. This is the note in suit. Thereafter, this last named note was twice renewed, to-wit, on December 2, 1920, and again, on October 20, 1921.

The principal defense relied on by the appealing defendant is that he signed the note with the understanding that the money should not be paid to the executrix in payment of the land until a deed had been executed by her to himself and the other signers jointly; this was for his own protection as surety on or accommodation maker of the note. The testimony upon this vital issue in the lawsuit is conflicting. Long, the cashier of the plaintiff, testified positively that no such agreement existed; that the money was paid, pursuant to agreement with all the parties, including this defendant, on June 23, 1919; that the executrix would not permit the purchaser to take possession of the land during the farming season of 1919 without such payment and that plaintiff never had any agreement or understanding with any of the defendants that the money should be retained until a joint deed was delivered or a second mortgage taken. The testimony of the witnesses for the de[586]*586■fondant is not very clear or specific upon this point. It is needless to review it. The jury found against the defendants upon both points, the questions having been submitted under instructions clearly stating the theory of the defendant and at the same time advising the jury that if it found that such an agreement or understanding existed, namely, < hat the money should not be paid to the executrix until a deed to the signers jointly was delivered, or that a second mortgage should be procured by the plaintiff for the protection of the defendants, and that in violation thereof the money was paid and no mortgage procured, the verdict must be for the defendants. These issues were fairly and fully submitted to the jury and a verdict was returned against the defendant. There is ample evidence in the record to sustain the verdict in this regard and we shall pass to a consideration of errors bastid upon rulings of the trial court upon motions and the admissibility of evidence.

Error is based upon the refusal of the trial court to direct a verdict at the conclusion of the plaintiff’s case and also upon denial of defendant’s motion to dismiss. This assignment of error cannot be considered under the ruling in Leonard v. Raleigh Co-op. Mercantile Co. ante, 400, 196 N. W. 102; and Carson State Bank v. Grant Grain Co. ante, 558, 197 N. W. 146, the defendant having failed to renew the motion for a directed verdict at the conclusion of the entire case. The plaintiff, however, clearly established a prima facie case before it rested, having* proved the execution of the note by the defendant and its nonpayment. The grounds of the motion are, among others, that the note is not labeled “renewed note” in conformity with chapter 91, Session Laws 1921. The note in suit, being plaintiff’s exhibit 1, has written upon its face the word “renewal.” At the time the note sued on was given, to Wit, in October, 1919, the original note was returned; nor was there at that time any law in force, in this state requiring renewed or renewal notes to be labeled in any manner. Tt is true that the note renewing the indebtedness, dated October 26, 1921, is not. marked “renewed” or “renewal.” Suit, however, is not brought on that note. Suit is brought upon'the original note and the statute referred to has no application. The plaintiff may, under the facts here, sue on the original note notwithstanding the renewals. Wirtz v. Wolter, 32 N. D. 364, 155 N. W. [587]*5871092; Farmers State Bank v. Kvamme, ante, 549, 196 N. W. 143; 8 C. J. 808, note 36.

It was claimed by tbe defendant that a contract was entered into in writing between tlie defendants on the one hand, and the executrix of the estate to which the land purchased belonged, on the other; that this contract provided that the deed should be delivered to them jointly and that in violation of this contract, which, it was asserted, was known to the hank, and in the procuring of which agreement the bank was said to bave been active, tbe deed was delivered to the defendant A. TÍ. Dronen as sole grantee. The evidence entirely fails to connect the bank with this contract or to show that its active officers or agents had knowledge of or legal responsibility for its terms. It is alleged that the court erred in excluding evidence sought to he elicited, for the purpose of showing that the land was advertised for sale in violation “of the terms of this contract.” The inference seems justified that the notice or advertisement referred to was the statutory notice required to he published by tbe executrix in order to make a valid sale of the land belonging to the estate. This question was asked of the appealing defendant, hut, on objection, the answer was excluded. The contract had not been offered or introduced in evidence, altho the witness testified that he thought it was, at the time of the trial, in the possession of his attorney; the terms of it were not known.

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Cite This Page — Counsel Stack

Bluebook (online)
197 N.W. 150, 50 N.D. 583, 1924 N.D. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-bank-v-dronen-nd-1924.