State Bank v. Huffman

160 N.W. 115, 100 Neb. 396, 1916 Neb. LEXIS 190
CourtNebraska Supreme Court
DecidedNovember 17, 1916
DocketNo. 18895
StatusPublished

This text of 160 N.W. 115 (State Bank v. Huffman) is published on Counsel Stack Legal Research, covering Nebraska 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. Huffman, 160 N.W. 115, 100 Neb. 396, 1916 Neb. LEXIS 190 (Neb. 1916).

Opinion

Hamer,-J.

This is an action by the State Bank of Omaha against Walter Moise and William L. Huffman. The petition alleged that on the 6th day of June, 1913, the Omaha Motor Oar Company, a corporation under the laws of Nebraska, for a valuable consideration made and delivered to the plaintiff, the State Bank of Omaha, its promissory note as follows:

“Omaha, June 6, 1913. No. 572. Due Dec. 6, |5,000. Six months after date we or either of us promise to pay to the State Bank of Omaha or order five thousand and no/100 dollars, value received, at the State Bank of Omaha, Nebr., with interest at the rate of 6 per cent, per annum from maturity until due, payable annually. If this note is not paid at maturity, principal and interest shall draw [398]*398interest at the rate of 10 per cent, per annum from maturity until paid. Omaha Motor Car Co.,
“By W. L. Huffman, Sec. and Treas.”

The petition further set forth that the names W. L. Huffman and Walter Moise were indorsed on the back of said note; that prior to the delivery of said note, and as a part of the consideration for the loan of $5,000 as alleged therein, the defendants, W. L. Huffman and Walter Moise, indorsed their names upon the said note as joint makers; that said note was duly presented for payment- at maturity, but was not paid, and thereafter was duly protested for nonpayment, and notice was duly served as provided by law upon said W. L. Huffman and Walter Moise, informing them of the dishonor of the said note, and that they would be held for payment of the same; that the costs of said protest and notice was the sum of $2.59; that no part of the said note or interest or protest fees has been paid, and that there is due and owing from the defendants to the plaintiff the sum of $5,002.59, with interest thereon at the rate of. 6 per cent, per annum from the 6th day of December, 1913. The plaintiff prays for judgment against the defendants, W. D. Huffman and Walter Moise, in the sum stated, with interest and for the costs. The Omaha Motor Car Company, whose name appears on the note as the maker, was not sued.

By answer and cross-petition, William L. Huffman submitted to the court a controversy with his codefendant and comaker of the note, Walter Moise, as to which one of the two 'was primarily liable on the note. It is contended by the bank that it had no notice of a controversy between Huffman and Moise. A jury was waived, and the district court held both defendants, Huffman and Moise, to be primarily and severally liable on the note and entered judgment against them. It is contended by the bank that neither defendant claimed at the trial that the bank had agreed to look to either defendant more than to the other for the payment of the note. It is claimed on behalf of the bank that it was entitled to a joint and several judg[399]*399ment against both defendants, and that, if there exists a valid contract between Moise and Huffman wherein only one was security for the other on the note, then that contract is enforceable in a separate suit brought for that purpose, but that it cannot be enforced in this suit by having a judgment entered other than that which a joint contract between them and the bank would justify. This court is asked to reach a different conclusion from that reached in the trial court.

Huffman contends, as appellant, that the judgment is not sustained by the evidence, and that it is against the clear weight of the evidence, and that it should have been in favor of the appellant, William L. Huffman, and against Walter Moise, the appellee. It is contended by Huffman that the judgment should have found Walter Moise primarily liable to the plaintiff on the note set forth in the petition, and should have directed execution to issue first against him before any liability could be enforced against appellant. It was claimed that the court erred in not finding that the appellant was an accommodation indorser on the note set forth in the petition, and at the request of Walter Moise, the appellee.

The defendant Huffman filed a long answer and cross-petition in which he set up that the defendant Walter Moise entered into a contract with D. W. Henry, himself, W. A. Gordon, and the Omaha Motor Car Company to loan the company $15,000, the same to be secured by a bill of sale covering certain furniture and fixtures owned by the corporation, and all material, machinery, fixtures, and other personal property owned by said company, including two automobiles. There was a recital in the agreement that all of the parties were stockholders in the Omaha Motor Car Company, which was engaged in the manufacture of automobiles; that pursuant to the agreement a certain bill of sale was executed by the Motor Car Company, and delivered to the defendant Walter Moise, and which was for his security; that on June 7,1912, Moise took a note signed by the Motor Car Company for the sum [400]*400of $5,000., due December 6, 1912, to the Merchants National Bank of Omaha, and indorsed the same; that said Moise caused $5,000 to be paid by the Merchants National Bank to the Omaha Motor Car Company; that the $5,000 note became due, and that to obtain money to pay the same said Walter Moise obtained the note of the said Omaha Motor Car Company for $7,000, and indorsed the same; that the defendant Huffman also indorsed the same; that the sum of $7,000 was obtained from the State Bank of Omaha, and that there was paid to the said State Bank of Omaha the sum of $2,000 of the said $7,000; that said Moise agreed to pay said note when it became due, but failed to do so, and that $5,000 thereof was renewed by a new note, while $2,000 was paid on the said sum of $7,000; that said notes made by the Omaha Motor Car Company were placed in the hands of the said Walter Moise to enable him to carry out his agreement of furnishing $15,000 for the use of the company; that the defendant Huffman .indorsed said notes for the purpose of enabling the said Walter Moise to obtain said money, and that what Huff■man did was done.for the accommodation of Moise and without other consideration; that Moise was to pay the notes and save the defendant Huffman from all liability. Judgment was asked by Huffman to the effect that as between the defendant Huffman and Walter Moise the court should find that Moise was first liable for the payment of said note and interest, and that execution should first issue upon said judgment against said Moise, and that said judgment should be collected from him, the said Moise.

Moise answered the cross-petition of Huffman setting forth that the bill of sate was made to protect him, said Moise, from loss or damage by reason of advances of money to said Omaha Motor Car Company, and to protect him, said Moise, from any liability which he might incur by signing or indorsing notes on behalf of the said Motor Car Company; that said Moise admitted that the note signed by the Omaha Motor Car Company for the sum of $5,000, due Dec. 6, 1912, to the Merchants National Bank of [401]*401Omaha was indorsed by him, said Moise and also by D. W. Henry and the defendant W. L.

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131 N.W. 600 (Nebraska Supreme Court, 1911)

Cite This Page — Counsel Stack

Bluebook (online)
160 N.W. 115, 100 Neb. 396, 1916 Neb. LEXIS 190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-bank-v-huffman-neb-1916.