Van Geest v. Willard

180 P.2d 78, 27 Wash. 2d 753, 1947 Wash. LEXIS 325
CourtWashington Supreme Court
DecidedMay 1, 1947
DocketNo. 30004.
StatusPublished
Cited by14 cases

This text of 180 P.2d 78 (Van Geest v. Willard) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Geest v. Willard, 180 P.2d 78, 27 Wash. 2d 753, 1947 Wash. LEXIS 325 (Wash. 1947).

Opinion

Jeffers, J.

This is an action on a promissory note, instituted by C. Van Geest, as the owner and holder of such note, against Howard Willard and Faye Willard, his wife, makers of the note. The note, introduced as plaintiff’s exhibit No. 1, is dated July 18, 1944, and is for the principal sum of five hundred dollars. It is made payable to the order of R. W. Privette and became due February 1, 1945. The note draws interest at the rate of six per cent per annum from date. It is signed by Mr. Howard Willard and Mrs. Howard Willard and is endorsed on the back, “Pay to the order of C. Van Geest. R. W. Privette.”

The complaint alleged the transfer of the note, before maturity, for a valuable consideration, by R. W. Privette to *755 plaintiff; that the note had not been paid, although demand for payment had been made. The complaint was filed February 5, 1945.

Defendants Willard and wife, by their answer and cross-complaint, admitted the execution of the note and its delivery to plaintiff, but denied it was delivered to plaintiff before maturity and for value. Defendants then set up two affirmative defenses, in the first of which it was alleged that, on or about July 18, 1944, defendants entered into negotiations with R. W. Privette and wife, looking toward the purchase of the following described real property in King county, to wit: The north 150 feet of the south 180 feet of the west 90 feet of the east 480 feet of the southeast quarter of the southwest quarter of section 2, township 24 north, range 6, E.W.M. (this is beach property); that, as a part of such negotiations, a certain contract form was prepared by Privette, and defendants were informed and believed that this contract form was signed by Privette and wife; that such contract was never signed by defendants, and defendants thereafter refused to complete the contemplated purchase and refused to enter into the proposed contract of purchase.

It was further alleged that the note here sued upon by plaintiff was given by defendants Willard to evidence the down payment under the proposed contract. It was further alleged that, prior to the time plaintiff acquired any ownership of or interest in the note, he was orally informed by defendants of the facts surrounding the note and the proposed real estate contract; that there was no consideration for the note.

In the second affirmative defense, it was alleged that defendants were informed and believed that, sometime between July 18, 1944, and December 8, 1944, plaintiff purchased the property hereinbefore described, and received conveyance thereof, from R. W. Privette, and purchased and accepted an assignment of the vendor’s interest in the real estate contract hereinbefore mentioned, which contract was dated July 18, 1944, and in which Privette and wife were named as sellers, and Willard and wife as purchasers.

*756 It was further alleged that, on or about December 8, 1944, plaintiff caused to be served upon defendants a notice of intention to declare a forfeiture of such contract, which notice provided that

“. . . all payments heretofore made thereunder will be retained by the undersigned in liquidation of all damages sustained by reason of your default”;

that, after service of the notice, defendants exercised no dominion over the property and acquiesced in the forfeiture by plaintiff; that the note sued upon by plaintiff was intended to represent a portion of the down payment under such purported contract, and this fact was known to plaintiff at the time he acquired the note.

Defendants Willard, by way of cross-complaint, made the defendants Privette parties to this action. The allegations in the cross-complaint were in effect the same as those set out in the two affirmative defenses. The prayer of the cross-complaint was that plaintiff’s action be dismissed; that, in the event plaintiff was, permitted to recover against defendants Willard, they be granted judgment against the Privettes for any amount plaintiff was allowed to recover against defendants Willard.

Defendants Privette, by their answer to the cross-complaint, denied the following allegations of the cross-complaint:

“That the defendants, Willard, executed said note and delivered the same to said Privettes and said Privettes accepted said note, all parties intending said note to represent the down payment under the proposed contract for the purchase and sale of the above mentioned described real property. That no contract for the purchase and sale of said property was ever entered into or consummated between the said Willards and said Privettes. That there was no consideration for said note.”

Defendants Privette then alleged that the note was given and accepted in lieu of cash or payment of the portion of the purchase price of the property receipted for in the contract. Plaintiff, by his reply, denied the material allega *757 tions of the answer of defendants Willard. The cause came on for trial before the court on November 16, 1945.

We shall refer to the witnesses as they were called, and give a summary of the material part of their testimony. Mr. Van Geest was the first witness called. He testified that he was the owner and holder of the note (plaintiff’s exhibit No. 1), and that no part of the note had been paid. The note was admitted in evidence, without objection. On cross-examination, this witness testified he purchased the note from Mr. Privette about a week or ten days after its execution; that he purchased the note and real estate contract at the same time, but as separate transactions, and paid Mr. Privette fifteen hundred dollars for them.

Defendants’ exhibit No. 2 was then marked for identification, and the witness stated that the exhibit was one of the copies of the contract he purchased;- that there were three or four copies. Exhibit No. 2 purports to be a real estate contract entered into on July 18, 1944, between R. W. Privette and Vivian Privette, his wife, called “seller,” and Howard Willard and Faye Willard, his wife, called “purchaser,” wherein the seller agreed to sell and the purchaser agreed to purchase the real estate hereinbefore described. We quote the following terms of the contract:

“The purchase price is Seventeen Hundred ($1700.00) Dollars, of which Five Hundred ($500.00) Dollars has been paid, the receipt whereof is hereby acknowledged, and the balance of said purchase price shall be paid as follows: $50.00 on August 1st 1944, and $25.00 on Sept. 1st 1944 and $25.00 each and every following month thereafter, until the said principal sum, together with six per cent interest on remaining balances shall have been fully paid.”

The contract contains a provision that the purchaser is entitled to possession on August 1, 1944. It contains the usual provisions of such contracts, including a forfeiture clause. This particular exhibit was signed and acknowledged by Mr. and Mrs. Privette, before Paul Meyer, a notary public, on July 18, 1944.

Mr. Van Geest stated that Mr. Willard wanted him to buy “this deal,” or loan him some money to make the deal, *758 and that he told Willard he would be willing to buy the note and contract at a discount; that thereafter Willard and Mr.

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Bluebook (online)
180 P.2d 78, 27 Wash. 2d 753, 1947 Wash. LEXIS 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-geest-v-willard-wash-1947.