Wollman v. Loewen

70 S.W. 253, 96 Mo. App. 299, 1902 Mo. App. LEXIS 126
CourtMissouri Court of Appeals
DecidedOctober 21, 1902
StatusPublished
Cited by4 cases

This text of 70 S.W. 253 (Wollman v. Loewen) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wollman v. Loewen, 70 S.W. 253, 96 Mo. App. 299, 1902 Mo. App. LEXIS 126 (Mo. Ct. App. 1902).

Opinion

GOODE, J.

Respondent Morton Wollman sued Sigfried Bienenstok and David Loewen on two promissory notes, both for $1,250, dated November 17, 1896, signed on their faces by Sigfried Bienenstok and •on the backs by David Loewen, payable two years after date with interest at the rate of five per cent per annum. One of said notes was made payable to Morton Wollman ■or his order and the other to Henry Wollman or his •order, and the latter was indorsed by the payee, Henry Wollman, to respondent Morton Wollman.

The petition was in four counts, the first declaring ■on the note in which Morton Wollman was payee against Bienenstok and Loewen as joint makers; the second on the note of which Henry Wollman was the original payee against the defendant in the same capacity; that is, as joint maker, and averring that after the execution of said note, Henry Wollman indorsed and delivered the same for value to the respondent, whereby respondent became its owner. The third count declared on the [301]*301note made payable to Morton Wollman, against Bienenstok as maker and Loewen as indorser and averred that before tbe delivery of tbe instrument Loewen indorsed his name on tbe back of it and became liable for its payment; further, that at its maturity it was presented for payment at tbe place of payment, to-wit, tbe Continental Bank of St. Louis, demand of payment duly made and that on its refusal tbe note was protested and notice of tbe presentment, demand and non-payment duly given to Loewen. Tbe fourth count declared on tbe note of which Henry Wollman was payee against Bienenstok as maker and Loewen as indorser, and contained averments like tbe third count and also an averment that tbe original payee bad assigned and delivered tbe note for value to tbe respondent.

Tbe answer was likewise in four counts, each of which contained a general denial and a plea of want of consideration, like tbe following one taken from tbe answer to tbe first count of tbe petition:

“Further answering said first count or cause of action, tbe said defendant David Loewen states that subsequent to tbe execution by tbe defendant, Sigfried Bienenstok, of tbe promissory note sued on in tbe first count or cause of action, tbe said defendant, David Loewen, signed bis name on tbe back of said note; that neither at tbe time tbe said defendant, David Loewen, signed bis name on tbe back of said note, nor after-wards, was there any consideration paid by or moving from, tbe plaintiff to either tbe said defendant, David Loewén, or tbe said defendant, Sigfried Bienenstok, nor was there any consideration paid by, or moving from tbe defendant Sigfried Bienenstok, to tbe said defendant, David Loewen; and that by reason of said want of consideration tbe said defendant, David Loewen, did not become and is not liable for tbe payment of said note.”

Tbe answer to tbe second and fourth counts' of tbe petition also averred that tbe note given to Henry Wollman was indorsed by him to tbe respondent after its maturity, without value and with full knowledge on tbe [302]*302part of the respondent at the time of the indorsement, that the note was without consideration. The pleadings are thus fully stated because they are important in determining whether the judgment can be sustained.

The evidence shows that Bienenstok was a brother-in-law of the two Wollmans, and also of Loewen, and that wishing to engage in business, he applied to the Wollmans for a loan of five thousand dollars, which they finally consented to make provided Loewen would stand good for one-half of it. ' With the understanding that he would, the Wollmans, who lived in Kansas City, sent four notes of $1,250 each to Bienenstok in St. Louis, on November 17,1896, two of which notes were payable to Henry Wollman and two to Morton Wollman, and it was arranged between them ■ and Bienenstok that Loewen should sign one of the notes made to each of said payees. In the letter the Wollmans wrote to Bienenstok, he was requested to have Loewen sign the two notes either as maker or as indorser with protest waived. Loewen signed them by writing his name on the back, but dqclined to waive notice of' protest and the notes were accepted by the Wollmans in that form. They were not paid at maturity and were protested; but respondent concedes no proof is contained in the record before us sufficient to show that notice was given to Loewen of their dishonor so as to bind him as an indorser.

The main defense relied on in the court below by Loewen, who is the only appellant, was that the notes in suit were signed by him after the transaction had been closed between the Wollmans and Bienenstok and tiie latter had received the full amount of the loan, so that there was no consideration for his (Loewen’s) signature.

At the close of the evidence, the court refused to compel respondent to elect on which counts he would ask a verdict, but instructed the jury to return a verdict for the respondent on the first and third counts of the petition, which was done. An amendment was after-wards made so that the verdict was on the second’ count [303]*303instead of the third, and motions for a new trial and in arrest were duly filed by the appellant Loewen.

The defense of want of consideration broke down; for it was shown to have been understood between the Wollmans and Bienenstok at least, that Loewen was to become obligated on the notes and the former lent their money on that understanding and Loewen signed the notes before they were delivered. These facts present a different case from those cited by the appellant in which parties who signed promissory notes as indorsers after the makers had executed and delivered them to the payee, without a previous arrangement that they should do so, were exonerated from liability because there was no consideration to support their promises. McMahan v. Geiger, 73 Mo. 145; McFarlan v. Heim, 127 Mo. 327. Loewen’s indorsement was contemporaneous with the promise of Bienenstok, the principal, and was for the latter’s accommodation; and in such instances the money lent to the maker is a sufficient consideration for the promise of the indorser. Krocht v. Obst, 14 Bush. (Ky.) 34; Palmer v. Field, 76 Hun 229, 27 N. Y. Supp. 736; Austin v. Boyd, 24 Pick. 64.

But that the peremptory instructions were erroneous if Loewen signed as indorser instead of as joint maker, for want of proof of notice to him of the dishonor of the notes at their maturity, is conceded by the respondent, who seeks to uphold the judgment on the ground that Loewen either actually signed as maker -or ought to be held liable in that capacity whether he did or not, on account of the state of the pleadings; that is, because he was alleged to be maker in the first and second counts of the petition and did not deny the execution of the notes under oath.

The rule of law in this State is that if one not .the payee of a promissory note, writes his name across the back of it, he is prima facie liable as a joint maker; but this presumption is open to rebuttal by parol evidence, unless the instrument has passed into the hands of an innocent holder; and until that happens, the party so [304]*304signing may show that the liability he assumed was-other than that of maker. Kingman & Co. v. Cornell-Tebbets Machine & Buggy Co., 150 Mo. 282.

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Bluebook (online)
70 S.W. 253, 96 Mo. App. 299, 1902 Mo. App. LEXIS 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wollman-v-loewen-moctapp-1902.