White v. Hulls

195 P. 850, 59 Mont. 98, 1921 Mont. LEXIS 182
CourtMontana Supreme Court
DecidedFebruary 4, 1921
DocketNo. 4,240; No. 4,241
StatusPublished
Cited by6 cases

This text of 195 P. 850 (White v. Hulls) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. Hulls, 195 P. 850, 59 Mont. 98, 1921 Mont. LEXIS 182 (Mo. 1921).

Opinion

MR. JUSTICE GALEN

delivered the opinion of the court.

These two appeals were taken from the order of the district court denying appellant’s motion for a new trial and were, by order of the court, consolidated, as exactly the same issues are involved in each appeal.

Prior to the commencement of the trial in the lower court, the appellant dismissed as to the respondents Merchants’ Bank of Winona, Mary A. Cox, and the Sanborn Company. The cases were by agreement tried together before a jury, and findings of fact, conclusions of law and decree were made in each [100]*100case upon identically the same evidence, save and except the differences in the amount of the notes and mortgages executed by respondents Mary V. Hulls and G. S. Black.

The appellant sought to foreclose two mortgages, one against the respondent Hulls and the other against the respondent Black. As a defense in each action, the! respondents, by answer, pleaded a want of consideration for the notes secured by said mortgages, and failure of performance of contract, in that appellant had contracted to drill a well for the respondents, and had failed to fulfill the terms of his agreement. On July 20, 1912, thé respondents Mary Y. Hulls and G. S. Black, together with one J. J. Deputy, entered into a contract in writing with the appellant, whereby appellant agreed to drill and equip a' well on the property of the respondent Hulls for $3.30 per foot, which contract provided for payment by respondents for the work to be performed. The well was completed on or about September 23, 1912, but was not paid for in accordance with the terms of the contract, and as of that date the respondent Hulls (who had acquired the interest of J. J. Deputy in the contract) and the respondent Black, in the year 1913 gave to appellant their joint and several promissory notes in payment of the amount due under the contract. These notes not having been paid át maturity, and the respondents having had trouble in securing water from the well, the respondents, on July 27, 1914, took up these notes, and separately executed notes secured by mortgages on the lands owned individually by each of them, the note of respondent Mary V. Hulls so executed and secured being for the sum of $1,500, and that of respondent G. S'. Black for the sum of $365. At the time of the execution of these notes and mortgages, the appellant signed and delivered to the respondents a new contract as follows:

“July 27, 1914.
“Mrs. Mary Y. Hulls and G. S. Black,
“Manhattan, Montana.
“This is to certify that in consideration of the security, first mortgages on your farm lands, furnished me this day in con[101]*101nection with indebtedness of $1,865 covering balance due on one certain, well, drilled on the property of Mrs. Hulls some two years ago, I hereby agree to, within a reasonable time from date hereof, put the well in entirely satisfactory condition so that it shall deliver at least four gallons of water per minute.”

On July 15, 1915, the first payment on each of the notes secured by these mortgages being overdue and unpaid, and it being provided in the mortgages that in such event the mortgagee might at his option regard the entire debt due and collectible, appellant commenced these actions to collect the whole amount of the notes and to foreclose such mortgage security.

The answer of respondents pleads failure and refusal of performance of appellant’s contract, and want of consideration for the making of the notes and mortgages of July 27, 1914, and also a counterclaim for damages. The trial court eliminated the damage feature, and in this respect was entirely correct, in our opinion. It made findings of fact and conclusions of law, denying appellant the right of foreclosure on the mortgages, but found in favor of appellant for the amount of indebtedness for the drilling of the well under the first contract, and entered decree accordingly.

The pivotal question, and in fact the only question in the eases, is whether there has been a failure of performance of the contract or of consideration for the mortgage security given to appellant by the respondents, dated July 27, 1914.

For determination of the equities involved in this case, we shall consider the fifth assignment of error only, which raises every other question presented by the other specifications of error, such assignment being as follows: “(5) The court erred in making conclusion of law No. 1.”

Conclusion of law No. 1, as made by the trial court, is as follows: “That the plaintiff is not entitled to foreclose the mortgage sued upon in this action, for the reason that he has failed to comply with the terms of his contract at the time of the execution and delivery of the mortgage.”

[102]*102On first examination and study of the record and of the findings of fact and conclusions of law as made by” the trial court, we were of opinion that there was an inconsistency in the findings as adopted and made, but on careful study and review they have been found to harmonize. If the contract of the appellant White, dated July 27, 1914, be considered as superseding all former contracts, then there would be a manifest conflict in the findings as made by the district court, as it would not be proper under such theory to find a failure of performance of appellant’s contract, and also to find an existing indebtedness due from the respondents to the appellant for the full amount of the notes.

From a review of all of the evidence in the case, we are [1] satisfied that the findings of fact and conclusions of law made by the trial court were justified, as the original contract for the drilling of the well, dated July 20, 1912, had been fully executed and the well accepted by the respondents and by them paid for, by the execution and delivery of their joint and several promissory notes, dated September 23, 1912. Thereafter, due to the fact that the well was not working satisfactorily, the appellant, as an inducement to the respondents to secure the amount of the indebtedness then admittedly due and owing to the appellant for the drilling of the well, executed the contract dated July 27, 1914. Upon reference to the terms of such contract it will be found that there was then an admitted indebtedness on the part of the respondents to the appellant in the sum of $1,865, covering the balance due for the drilling of the well under the contract of July 20, 1912, and the appellant, by such contract of July 27, 1914, agreed, in consideration of first mortgage? security on the farm lands belonging to the respondents, to “put the well in an entirely satisfactory condition so that it will deliver at least four gallons of water per minute.” This agreement did not affect the executed contract or the amount of the admitted indebtedness, but rather constituted a new promise and obligation on appellant’s part in consideration of mortgage security for the amount of the [103]*103debt. The indebtedness existing under the original contract was not affected, but in consideration of such mortgage security appellant agreed to put the well in entirely satisfactory condition. This was a good consideration for the contract.

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Cite This Page — Counsel Stack

Bluebook (online)
195 P. 850, 59 Mont. 98, 1921 Mont. LEXIS 182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-hulls-mont-1921.