Werry v. Goodman

301 P.2d 1111, 78 Idaho 298, 1956 Ida. LEXIS 275
CourtIdaho Supreme Court
DecidedOctober 2, 1956
Docket8430
StatusPublished
Cited by8 cases

This text of 301 P.2d 1111 (Werry v. Goodman) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Werry v. Goodman, 301 P.2d 1111, 78 Idaho 298, 1956 Ida. LEXIS 275 (Idaho 1956).

Opinion

TAYLOR, Chief Justice.

December 14, 1944, the defendants (respondents), husband and wife, executed and delivered to plaintiff (appellant) their promissory note in the sum of $16,000, payable on or before five years after date, with interest at the rate of 5% per annum. The note was originally secured by real and chattel mortgages, but at the request of the mortgagors the mortgages were not recorded until November 2, -1953. In the meantime the mortgaged property was sold with the knowledge and 'consent of0 the mortgagee. Upon the trial it was agreed, and the trial court found, that the security of the mortgage had been waived as to the real property, but plaintiff is entitled to be secured by the balance unpaid on the contract of sale.

The note bears five endorsements of payments of principal totaling $11,000. Upon the occasion of each payment, interest was computed at the rate of 4% per annum and paid to the date of payment. The balance of principal is endorsed opposite each payment. As a part of the last endorsement, bearing date “Jan 49”, the balance of principal is entered, “5,000”.

This action was commenced September 23, 1954. In her complaint appellant alleges that “various payments of principal and interest have been made. Last payment was made in November, 1953, at which time the interest was paid and principal balance reduced to $4,800; that all interest payments were computed and paid by defendants at the rate of 4% per annum instead of at rate of 5% per annum; that there is an amount due on principal of said note of $4,800 together with a balance of interest in the amount of $460, being balance due on all interest computed at 5%, together with interest at the rate of 5% from about the 20th day of November, 1953, on said principal amount of $4,800.00”. A copy of the note is attached to the complaint as. an.exhibit, but the endorsements are not set out therein.

*301 Defendants plead a general denial and then as follows:

* * * admits the execution of the promissory note and mortgage described in said Complaint, and the making of payments thereon by the defendants as set forth in the said Complaint, and further admit that there is a balance remaining on said note and mortgage, but allege that the said balance is subject to an offset on account of money due from plaintiff to defendants as hereinafter set forth in defendants’ Counter-Claim herein.”

Appellant contends that the foregoing constitutes an admission that the balance due upon the note is the amount alleged by plaintiff, and coupled with the general denial, constitutes nothing more than a negative pregnant. It does not appear that the pleading should be so construed. The admission that there is a balance remaining on the note is not equivalent to an admission that that balance is the amount claimed by plaintiff, so as to preclude proof of further payments. We think the intent of the pleader is sufficiently clear. Nobach v. Scott, 20 Idaho 558, 119 P. 295.

The counterclaim alleges that on or about September 19, 1951, the plaintiff and defendants purchased certain real and personal property at Arco in Butte County as tenants in common; an undivided one-half to the plaintiff and an undivided one-half to the defendants; that it was agreed that plaintiff would contribute one-half of the purchase price and the defendants would contribute the other one-half; that plaintiff contributed $6,000 and defendants have contributed a total of $11,354.89, an excess of $5,354.89 over the amount contributed by plaintiff. Defendants claim one-half of such excess, or $2,677.44, as an offset against the amount due the plaintiff on the note in suit.

Upon the trial defendants introduced in evidence their cancelled check drawn by Mrs. Goodman, payable to plaintiff in the sum of $3,000, dated January 2, 1950. On the witness stand plaintiff acknowledged her endorsement, and receipt of the proceeds, of the check. At first she explained that she had not endorsed the payment on the note because at the time of its receipt she was preparing to leave for a trip to California. Then she thought it might have been given in payment of an old obligation of the defendants, her final testimony being that she did not know what it was for, or how she had applied it, and that she had no record of it. Both defendants testified it was given in response to her demand for, and as, a payment on the note. This evidence amply supports the trial court’s finding that a payment of $3,000 was made on the principal of the note in January, 1950.

' November 6, 1953, Mrs. Goodman paid to plaintiff in cash'$1,000,' for which- she received plaintiff's receipt 'as follows:

*302 “■Received of ■ "Valeria ' Goodman'
'$1000.00 (one thousand) dollars to pay-all hack interest on mortgage covering years 1950, 1951, 1952, 1953. $200.00 to apply on principal. Due $4800.00.
“/s/ Dora M. Werry
“Wit Pearl Gtiisasola
“Nov. 6, 1953.” (Defendants’ Exhibit 5.)

Interest on this occasion was ’ also computed at 4%. • ■

Appellant assigns as error the finding of the trial court that the insertion in the note of 5% was a mutual mistake; that the parties agreed upon 4% and intended to provide for interest at that rate. The evidence shows plaintiff had previously made loans to defendants and had always charged and collected interest at 4%. In her testimony plaintiff said she had not charged more than 4% until this note was executed. Although she testified that the agreement in this instance. was for 5%, she also testified she received and accepted the interest .payments at 4%, and, as evidenced by Exhibit 5, she accepted interest at that rate in payment of “all back interest” for the four years mentioned.

Appellant’s present contention is that such evidence should not have been received because neither mistake nor accord and satisfaction were pleaded by defendants. To be relied upon, such affirmative defenses should be pleaded. Bowers v. Bennett, 30 Idaho 188, 164 P. 93; Cupples v. Zupan, 35 Idaho 458, 207 P. 328; Stone v. Webster, 65 Idaho 392, 144 P.2d 466; Boise City v. Better Homes, 72 Idaho 441, 243 P.2d 303; 45 Am.Jur., Reformation of Instruments', § 108; 76 C. J.S., Reformation of Instruments, § 76.

However, no such contention was made in the trial court. The case was tried on the theory that such issues were properly before the court. No objection was made on the ground the defenses were not pleaded. Want of pleading was therefore waived. Stone v. Webster, 65 Idaho 392, 144 P.2d 466.

In Marysville Development Co. v. Hargis, 41 Idaho 257, 239 P. 522, it was held that an agreement to discharge a debt for a sum smaller than is due, is valid and irrevocable when it is fully executed and evidenced by a written receipt.

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Bluebook (online)
301 P.2d 1111, 78 Idaho 298, 1956 Ida. LEXIS 275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/werry-v-goodman-idaho-1956.