Whittier v. Leifert

9 N.W.2d 402, 72 N.D. 528, 1943 N.D. LEXIS 88
CourtNorth Dakota Supreme Court
DecidedApril 26, 1943
DocketFile 6877
StatusPublished
Cited by2 cases

This text of 9 N.W.2d 402 (Whittier v. Leifert) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whittier v. Leifert, 9 N.W.2d 402, 72 N.D. 528, 1943 N.D. LEXIS 88 (N.D. 1943).

Opinion

*530 Morris, Ch. J.

This is an action wherein the plaintiffs seek judgment against the defendant on four promissory notes of $100 each dated May 12, 1932, and due October 1, 1934, 1935, 1936, and 1937, respectively.

At the close of the testimony in .the court below both parties made motions for directed verdict. The court directed a verdict for the plaintiff and .judgment was entered in accordance therewith. The defendant made a motion for a judgment notwithstanding the verdict or for a new trial which was denied. This appeal is taken from the order of the trial court denying the motion.

The notes are payable “To the Order of Estate of Herbert A. Whittier” and on the backs thereof bear the endorsement “Pay to the order of .Grace A. Whittier, Glenn H. Whittier and Gladys Whittier Ooleman.” ■ The indorsement is signed by the two parties first named as “executors of the estate of Herbert A. Whittier, deceased.”

The complaint alleges that before the commencement of the action the *531 iiotes were, for a valuable consideration sold, assigned and delivered to tbe plaintiffs who are the owners and holders thereof. The answer denies the allegations of the complaint generally, and specifically denies that the notes were given for a valuable consideration or that the plaintiffs are the owners and holders thereof.

Grace A. Whittier testified to the execution and delivery of the notes by the defendant and also testified that they were given in connection with a compromise settlement made with the defendant of a former note payable to her father for $900. The debt was scaled down to $500. Five notes were taken; one was paid, the remaining four are involved in this action. The heirs of the estate of Herbert A. Whittier, deceased, were the widow and the three children who are plaintiffs in this action. The notes, when taken, became assets of the estate which was in the course of probate in Nice County, Minnesota.

They were turned over to the plaintiffs and indorsed by two of them acting as coadministrators in August, 1932. It further appears from the testimony that this was done in carrying out a decree of partial distribution made in July, 1932:

The defendant asserts that the complaint alleges purchase of the notes for valuable consideration which is specifically denied by the answer and that the plaintiffs have wholly failed to meet the issue thus raised or to prove in any manner that they are the actual owners of the notes.

The examination of the witness, Grace A. Whittier, by her own counsel, the court and counsel for the defendant, is somewhat lengthy and involved. Numerous objections were made by defendant’s counsel who took the position that since the record showed that the notes were executed and delivered as assets of the estate their transfer from the estate to the plaintiffs could only be shown by properly authenticated records of the probate court having jurisdiction over the estate. The evidence consists wholly of oral testimony.

The point is further made by defendant’s counsel that the widow is shown to have had an interest in the estate and, therefore, in the notes and that the plaintiffs failed to show the transfer of her interest to them. In the course of his cross-examination of Grace A. Whittier, defendant’s counsel brought out facts which disclose how the notes were .transferred from the estate to the plaintiffs and how they became the *532 owners of the widow’s share therein. After the witness had testified that the notes were property of the estate the record discloses the following :

“Q. The notes are dated May 12th, 1932 ? A. Yes.
“Q. Your mother was alive at that time, and continued to live until 1935 you say, is that right ?
“A. Yes, sir.
“Q. And the transfer of these notes, such as it was, was made when ?
“A. In August 1932.
“Q. In August, 1932, and the estate had not been closed at that time ?
“A. No, sir. There had been a Decree of Partial Distribution at that time.
. “Q. Would you say that Partial Distribution set over a certain portion of the assets to the heirs ?
“A. I should think that sounds right.
“Q. And to whom do you say it was set over, or do you know anything about that at all ?
“A. About what you are talking about ?
“Q. Yes.
“A. Not sure that I do.
“Q. You don’t know who those notes were set over to ?
“A. They were given to the three of us as co-administrators.
“Q. Without your Mother, •— without her interest being transferred ?
“A. We had been unable in the spring to collect anything on the notes, so we let Mother have cash and we took these notes as our share.
“Q. There was cash in the estate ? A. Yes.”

The above testimony when considered in the light of other evidence admitted without objection leaves no doubt in our minds as to what happened. The notes involved in this case were assets of the Herbert A. Whittier estate but were of questionable value. A partial distribution of the assets was ordered by the probate court. The heirs of the estate were the widow and the three children. Two of the children were coadministrators. They had been unable to collect anything on the notes. All parties, no doubt, realized the questionable value of the notes. They had been obtained by reducing an original indebtedness of the defendant from about $1,000 to $500. The children took the *533 notes as their share of the partial distribution and gave the widow her share in cash. The notes were indorsed to the plaintiffs by the two who were coadministrators. Thus, the transaction in part at least involved the sale of the interest of the widow to the children. They became the owners of the notes by a transaction which was in part a distribution of their father’s estate and in part a transfer to them for valuable consideration of their mother’s interest.

The defense is technical. Nowhere is there an intimation that the defendant does not owe the full amount due on the notes. He resists judgment on the ground of failure of proof on the part of the plaintiffs and variance between the proof and the allegations of the complaint. The trial court states in his memorandum opinion that the defendant was present in court throughout the trial but offered no evidence.

There is no fatal variance between the pleadings and the proof. The complaint alleges that the plaintiffs are the owners of the notes and the proof sustains this allegation. The defendant contends that there are two theories in the case dealing with the method of acquisition of the notes by the plaintiffs.

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Bluebook (online)
9 N.W.2d 402, 72 N.D. 528, 1943 N.D. LEXIS 88, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whittier-v-leifert-nd-1943.