Strauss v. Monitor Specialty Co.

131 N.W. 193, 89 Neb. 176, 1911 Neb. LEXIS 169
CourtNebraska Supreme Court
DecidedApril 24, 1911
DocketNo. 16,396
StatusPublished
Cited by2 cases

This text of 131 N.W. 193 (Strauss v. Monitor Specialty Co.) 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
Strauss v. Monitor Specialty Co., 131 N.W. 193, 89 Neb. 176, 1911 Neb. LEXIS 169 (Neb. 1911).

Opinion

Fawcett, J.

The petition alleges substantially: That the defendant the Monitor Specialty Company is a Nebraska corporation; that on February 18, 1908, said defendant was adjudged a bankrupt, and defendant Abel Y. Shotwell was appointed trustee in bankruptcy of its estate; that during all of the times mentioned in the petition defendant D. G. Walker was the president and defendant M. J. Ramaekers the secretary and treasurer of the corporation; that on November 14, 1907, the defendant corporation made and executed three promissory notes, one for $300 due on or before December 14 after date, one for $300 due on or before December 24 after date, and the third for $202.90 due on or before January 14 after date. These notes were all alike in form, payable to the order of “ourselves,” and signed “The Monitor Specialty Co., by D. G. Walker, President, by M. J. Ramaekers, Sec’y & Treas.” Each note was indorsed upon the back as follows: “D. G. Walker. M. J. Ramaekers.” That after the notes were so signed and indorsed “all of said defendants for a valuable consideration delivered said notes to these plaintiffs.” That at the time of the execution and delivery of the notes “it was the intention of the defendants to execute to these plaintiffs valid and enforceable promissory notes aggregating said sum of $802.90, but that at said time said defend-. ant the Monitor Specialty Company failed to indorse said notes, by reason of which failure to indorse said notes these plaintiffs are unable to enforce same against said defendants, and will be unable to enforce same unless this court shall require said defendant the Monitor Specialty Company to indorse same. * * * That at the time of the execution and delivery of said promissory notes, as herein set forth, it was agreed and understood that said notes should be indorsed by the defendant the Monitor Specialty Company, but that through inadvertence and mistake said defendant the Monitor Specialty Company failed and omitted to indorse said notes, and said defend[178]*178ant the Monitor Specialty Company has failed and refused, and still fails and refuses, to indorse said notes, though often requested by these plaintiffs so to do, and said defendants the Monitor Specialty Company, Ó. G. Walker, and M. J. Ramaekers claim and contend that, by reason of the failure and omission of said the Monitor Specialty Company to indorse said notes, same are of no force or effect and create no liability against the said mentioned defendants.” That when the notes became due they were duly presented to the defendant corporation for payment, but were not paid, whereupon said notes were duly protested for nonpayment, “of all of which said D. G. Walker and M. J. Ramaekers had due notice,” the cost of said protest, $9.30, being paid by plaintiffs. That plaintiffs are the owners and holders of same, and that there is now due and owing to the plaintiffs thereon the sum of $802.90, together with interest and the further. sum of $9.30 protest.

The prayer of the petition is that the defendants the Monitor Specialty Company and D. G- Walker, as president, and M. J. Ramaekers, as secretary and treasurer, and Abel Y. Shotwell, as trustee in bankruptcy, be required forthwith to indorse said notes in the name of the Monitor Specialty Company as of the date of November 14, 1907, by writing across the back of said note the name of said “The Monitor Specialty Co., by D. G. Walker, President, by M. J. Ramaekers, Secretary and Treasurer, and by Abel V. Shotwell, Trustee in Bankruptcy of the estate of said The Monitor Specialty Co.and that plaintiffs recover judgment against the defendants the Monitor. Specialty Company, D. G. Walker, and M. J. Ramaekers for the amount of said notes and interest.

The answer admits the corporate capacity of defendant the Monitor Specialty Company; that defendant Shotwell is trustee in bankruptcy of the estate of said bankrupt; that defendant the Monitor Specialty Company is indebted to plaintiffs “in the sum of about $800, but on open account, less certain dividends paid thereon,” and denies [179]*179each and every other allegation in the petition. Further answering, defendants allege that the petition does not state facts sufficient to constitute a cause of action, and that several causes of action are improperly joined. There was a trial to the court, which resulted in a decree of reformation and judgment upon the notes as prayed in plaintiffs’ petition. Defendant Ramaekers alone appeals.

At the opening of the trial defendant objected to the introduction of any evidence on the part of plaintiffs, “for the reason that the petition filed by said plaintiff does not state facts sufficient to constitute a cause of action; and for the reason that several causes of action in said petition are improperly joined.” This objection was overruled, which ruling is now assigned as error. The objection that several causes of action were improperly joined is not discussed in the briefs. It will therefore be treated as abandoned and the objection to the sufficiency of the petition alone considered. The defendant contends that, in order to obtain the reformation of a written' instrument, the right to such reformation must be established by evidence which is “clear, convincing, satisfactory, specific, and free from reasonable controversy; and that complainant was free from negligence,” and that, if that degree of proof is required, the petition, upon which the action is based, should allege the facts with equal clearness and certainty. We think defendant has stated the rule a little more strongly than it has ever been applied in this court; yet we concede that his contention is substantially correct. Our understanding, however, of the clearness and certainty of allegation and proof necessary to. sustain a suit for reformation of a written instrument is that it must be sufficient to satisfy the mind that the contract as written is not the contract intended by the parties, and that the error or deficiency therein is the result of a mutual mistake of law or fact on the part of the parties to such contract. Does this petition meet that requirement? Let us see. It alleges that at the time of the execution and delivery of the notes in controversy “it was the intention of [180]*180the defendants to execute to these plaintiffs valid and enforceable promissory notes aggregating said sum of $802.90.” It is contended by defendant thát this allegation is insufficient. The petition had already alleged the giving, indorsing and delivery of the notes in suit and had set them out in full. The effect, therefore, of the allegation just quoted is that it was the intention of the defendants in executing these notes to execute valid and enforceable notes; and the allegation complained of is immediately followed by a statement of the fact which rendered them unenforceable. We are unable to concur in defendant’s contention.

The petition further alleges that at the time of the execution and delivery of the notes “it was agreed and understood that said notes should be indorsed by the defendant the Monitor Specialty Company, but that through inadvertence and mistake said defendant the Monitor Specialty Company failed and omitted to indorse said notes.” If it was the agreement that the notes which were made payable to “ourselves” were to be indorsed by 'the maker, the Monitor Specialty Company, that agreement, if carried out, would have made the notes “valid and enforceable.” They were not so indorsed, the petition alleges, “through inadvertence and mistake.” We think this allegation was sufficient. We therefore hold that the petition stated a cause of action.

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Cite This Page — Counsel Stack

Bluebook (online)
131 N.W. 193, 89 Neb. 176, 1911 Neb. LEXIS 169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/strauss-v-monitor-specialty-co-neb-1911.