Wolf v. Eppenstein

140 P. 751, 71 Or. 1, 1914 Ore. LEXIS 145
CourtOregon Supreme Court
DecidedApril 14, 1914
StatusPublished
Cited by7 cases

This text of 140 P. 751 (Wolf v. Eppenstein) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wolf v. Eppenstein, 140 P. 751, 71 Or. 1, 1914 Ore. LEXIS 145 (Or. 1914).

Opinion

Mr. Justice Moore

delivered the opinion of the court.

1. No demurrer to the complaint was interposed, and hence that pleading was not challenged on the ground of misjoinder of parties or of causes of action. Nor was any motion made to require the plaintiffs to elect as to whether they would proceed against the principals or the guarantor. In Tyler v. Trustees of Tualatin Academy, 14 Or. 485 (13 Pac. 320), it was held that, in a contract of guaranty, the liability of the principal and that of the guarantor was several, and they could not be joined as parties to the same action. In Bowen v. Clarke, 25 Or. 592 (37 Pac. 74), in a demise under seal P. Basche, one of the persons named in the contract as a lessee, wrote after his name the word ‘ ‘ surety. ” In an action by the landlord against the lessees, it was insisted that the term “surety,” as thus employed, made the defendant, who adopted the word of limitation, a guarantor who could not be joined with the other lessees. In deciding that case [8]*8Mr. Justice Bean, referring to the inquiry proposed and to the defendant named, says:

“The principal question presented is whether the defendant P. Basche can be sued jointly with the other defendants, the solution of which depends upon whether his undertaking is original or collateral. If his contract is collateral, and one of guaranty only, his liability and that of his principals is several, and cannot be enforced by a joint action.”

Further in the opinion, in adverting to the limiting word so used, it is observed:

“When the undertaking of the surety is not for a direct performance by himself, but only that his principal shall perform, and that he will be bound in case of default, his undertaking is not original, but collateral, and therefore his liability depends upon the terms of his contract, and not upon the character in which he may execute it. Now* in this case the lease was executed by all the parties, at the same time, upon the same consideration, and for the same purpose, and the undertaking of the appellant is not made conditional or dependent upon the default of the other defendants, but is an original, unconditional undertaking for a direct performance on his part. It is plain, therefore, within the rule stated, that his contract is not one of guaranty, or an agreement to answer for the debt, default, or miscarriage of another, but that of a joint obligation as to the plaintiff and, as a consequence, may be declared upon as such.”

An examination of the writing to which Rometsch subscribed his name, a copy of which is hereinbefore set forth, will show that it is a collateral engagement to answer for the default of the principals, Eppensteiii and Clark, upon their failure faithfully to perform the terms of the agreement. If the sufficiency of the complaint herein had been properly challenged on the ground suggested, the action as instituted could [9]*9not have been maintained as against Bometsch. Thus in Virden v. Ellsworth, 15 Ind. 144, a demise was executed by the landlord to Ford, whereupon Virden subscribed his name to an indorsement on the lease as follows: “For value received, I guaranty the payment of the rent, as stipulated by said Ford, in case of nonpayment, by him.” In an action to recover the rent, Virden was made a party and demurred to the declaration on the grounds of misjoinder of parties and of causes of action. The demurrer was overruled, and, judgment having been rendered as prayed for by the complainant, the action of the lower court was reversed. The Supreme Court holding that the undertaking of the guarantor was distinct from that of the principal and collateral thereto, for which reason there was a misjoinder as stated. To the same effect is the case of Cross v. Ballard, 46 Vt. 415. It was there insisted that the defendants, Blake and Baker, having joined with the defendant Ballard, the lessee, in all their pleas, were estopped and could not claim that the memorandum at the bottom of the lease to which they subscribed their names, to wit, “For the payment of said contract being fulfilled on the part of said J. N. Ballard, we the undersigned will become responsible,” rendered them guarantors. The court, in referring to the memorandum adverted to, said: “This is an independent guaranty, collateral to the principal contract, and does not render Blake and Baker joint contractors with Ballard. ” A judgment against all of the defendants was reversed as against the guarantors and affirmed as to the principal. In that case it would seem that the declaration did not state facts sufficient to constitute a cause of action as against the guarantors, though the sufficiency of that pleading does not appear to have been challenged in the trial court.

[10]*102, 3. Under the statute prescribing the rule of practice in Oregon, a defendant may demur to a complaint when it appears upon the face thereof that there is a defect of parties plaintiff or defendant, or that several causes of action have been improperly united: Section. 68, subds. 4 and 5, L. O. L. When any of the matters so enumerated do not thus appear, the objection may be taken by answer: Section 71, L. O. L. If no objection be taken, either by demurrer or answer, the defendant shall be deemed to have waived the same, excepting only the objection to the jurisdiction of the court, and that the complaint does not state facts sufficient to constitute a cause of action: Section 72, L. 0. L.

A defect as to parties plaintiff or defendant, as specified in Section 68, subdivision 4, L. 0. L., means that the presence of other parties is necessary to a complete determination of the cause. A demurrer interposed on that ground must show that the parties are too few and name those who should be brought in. The clause of the statute last referred to relates to a nonjoinder and not a misjoinder: Cohen v. Ottenheimer, 13 Or. 220 (10 Pac. 20); Tieman v. Sachs, 52 Or. 560 (98 Pac. 163); Powell v. Dayton etc. R. R. Co., 13 Or. 446 (11 Pac. 222); State ex rel. v. Metschan, 32 Or. 372 (46 Pac. 791, 53 Pac. 1071, 41 L. R. A. 692). Unless the objection on the ground of a misjoinder is either taken by a demurrer or answer in the court below, the defect is waived: Osborn v. Logus, 28 Or. 302 (37 Pac. 456, 38 Pac. 190, 42 Pac. 997); Bohn v. Wilson, 53 Or. 490 (101 Pac. 202); In re Young’s Estate, 63 Or. 120 (126 Pac. 992).

As the name of Rometsch appeared on the face of the complaint, and by reason thereof a demurrer would not lie, in consequence of there being too many par[11]*11ties, the defect could have been called to the attention of the trial court by an answer, but, the sufficiency of the initiatory pleading not having been challenged in any manner, the defects adverted to were waived.

4. John Rometsch, as a witness, testified that he signed the guaranty pursuant to an agreement with the other parties to this action that another guarantor would also be secured; that, after he had subscribed his name to the writing, the words “we” were changed to “I” without his knowledge or consent. His sworn declarations in these particulars appear inferentially to be corroborated from the circumstance that there was received in evidence a duplicate copy of the lease on which all the names of the parties are appended, and no alterations appear to have been made.

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Bluebook (online)
140 P. 751, 71 Or. 1, 1914 Ore. LEXIS 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wolf-v-eppenstein-or-1914.