Wilch v. Phelps

16 Neb. 515
CourtNebraska Supreme Court
DecidedJuly 15, 1884
StatusPublished
Cited by12 cases

This text of 16 Neb. 515 (Wilch v. Phelps) 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
Wilch v. Phelps, 16 Neb. 515 (Neb. 1884).

Opinion

Cobb, Ch. J.

This action was commenced in the district court of Colfax county for the purpose of foreclosing a mortgage executed on real estate in said county by the defendants to the plaintiff. The petition was in the usual form, setting up the execution of a promissory note by the defendant, G. W. Phelps, to the plaintiff for the sum of four hundred dollars, with interest at the rate of ten per cent per annum, payable six months after the date thereof, April 5, 1880. Also a mortgage on the real estate therein described to secure the said note executed by the defendants, husband and wife.

The answer of the defendants consisted of: 1. A general denial; 2. Of a defense in the following words: That in an action commenced in the county court of said Colfax county by plaintiff against the defendant, G. W. Phelps, and by the plaintiff appealed to the district court of said county the note described in the petition herein, and the consideration thereof, together with the question of legality of the consideration and validity of the note, were put in issue, and on the 7th day of October, 1881, the defendant, G. W. Phelps, recovered a judgment against the plaintiff in said district court of Colfax county in said action for the sum of $600, and on the merits, and that said judgment is unreversed and in full force.” Also of a third, fourth, and fifth defense. In the third defense is set up the purchase by the defendant, G. W. Phelps, from the plaintiff, of a certain brick machine, a pretended patent right to use the same, a certain amount of clay of the value [517]*517of $77.00, one horse-power of the value of $60.00, and a certain lot of wood of the value of $36.00. That at that time it was agreed by and between plaintiff and defendant that defendant should pay for said ■ clay, horse-power, and wood the sum of $173.00, and for said brick machine the sum of $275.00, and for the right to use said machine under said pretended patent in said Colfax county the sum of $752.00. That defendant paid plaintiff the sum of $253.00 on the 8th day of April, 1880, and on the 15th day of April, 1880, the sum of $22.00. Also, on the 26th day of the same month executed the note described in plaintiff’s petition herein, together with certain other notes —one for $200.00, due ten days after date, and one for $400.00, due six months after the elate thereof. That.on, the 25th day of May, 1880, defendant paid plaintiff on said claim the sum of $70.00, and on the 17th day of June, 1880, the sum of $210.00 That said payments were made and said notes were given for no other consideration than for said clay, horse-power, and wood, of the value agreed upon of $173.00: The balance of $1,027.00 being for and in consideration only for said patent machine and the right to use the same under said pretended patent right in the manufacture of bricks in said county of Colfax. Said patent was void for want of novelty, and was no improvement whatever on former methods of manufacturing bricks, and was of no value whatever, and defendant has received no consideration whatever for said amount of $1,027.00 as aforesaid provided by defendant, of which said note is a part.

° The fourth defense differs from the third only in that it charges the plaintiff with having represented to the defendant that he was possessed of a certain patent right for an improved machine and process of making bricks, that the said plaintiff for the purpose of inducing the defendant to purchase said property and said pretended patent right falsely and fraudulently represented to defendant [518]*518that it was a new, valuable, and useful improvement in the manufacture of bricks of great value, and defendant relying upon said representations so made to him by the plaintiff, purchased said right to use said machine under said pretended patent, together with a machine constructed under said pretended patent, etc. * * * That said plaintiff made said false representations knowing them to be false, whereby defendant has been greatly damaged, in this, that relying upon the said representations of the plaintiff he proceeded to mold with said machine, and did properly set in kiln about 200,000 bricks, and at great expense biirned said bricks, and did all things necessary to fully test said machine and process, and that the bricks so made by said machine and process were, through no fault of the defendant, practically of no value, and that good, merchantable brick could not be made by and with said machine and process, as plaintiff well knew.

The fifth defense is the same as the fourth, except that in it the defendant alleges that the plaintiff warranted that said patent process and machine would manufacture and produce a better quality of bricks than could be produced by the former and usual methods of manufacturing bricks, and much better bricks out of the clay then on defendant’s brick yard than those which defendant had made or could make by hand, with breach, etc. The reply consisted of a general denial. There was a trial to the court, a finding, and judgment for the defendants, and the cause brought to this court on appeal.

Upon a careful consideration of the point involved I am satisfied that the facts set up in the answer as the second defense fail to constitute a defense to the plaintiff’s action. The defendants in said second defense say that “ in an action commenced in the county court of said Colfax county by plaintiff against the defendant, G. W. Phelps, and by the plaintiff appealed to the district court of said county, the note described in the petition herein, and the [519]*519consideration thereof, together with the question of the legality of the consideration, and legality of the note, were put in issue, and on the 7th day of October, 1881, the defendant, G. W. Phelps, recovered a judgment against the plaintiff in said district court of Colfax county in said action for the sum of $600, and on the merits,” etc. This falls far short of an averment that the legality of said note, and of the consideration thereof, was necessarily and in fact considered and adjudicated upon in the decision of said cause and the rendition of said judgment. It is obvious that there were other matters involved in the suit sought to be set up in the pleading; otherwise how could a judgment for $600 have been rendered for either party, and while the merits of the note sued on may have been considered by the court, yet such a conclusion does not necessarily arise from the facts pleaded. A judgment may have been rendered on the merits in the case without touching upon the merits of a note the legality of which had been put in issue in the case. Such not only might be the case, but such no doubt was the case in that of the record plead in estoppel here.

In examining said record it appears that the answer in that case contained the same defenses as the answer in the case which I am now considering, with one additional one, to-wit: a plea under chapter 66 of the Compiled Statutes, setting up the failure on the part of the plaintiff before offering to sell the said patent right to submit to the probate judge'of the proper county for his examination the letters patent or a duly authenticated copy thereof, and his authority to sell or barter the right so patented, etc.

This court cannot close its eyes to the fact that the original answer in the case now under consideration contained, as defendant's second ground of defense, a plea of the statute as contained in the chapter above stated, that a demurrer thereto was overruled and a judgment entered thereon by the same court which tried the cause shown by [520]

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Bluebook (online)
16 Neb. 515, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilch-v-phelps-neb-1884.