Yowell v. Walker

3 Teiss. 454, 1906 La. App. LEXIS 88
CourtLouisiana Court of Appeal
DecidedJune 7, 1906
DocketNo. 3865
StatusPublished

This text of 3 Teiss. 454 (Yowell v. Walker) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yowell v. Walker, 3 Teiss. 454, 1906 La. App. LEXIS 88 (La. Ct. App. 1906).

Opinion

ESTOPINAL, J.

The plaintiffs were state agents in Arkansas for the Union Life Insurance Company of Ohio with offices in Little Rock.

Alex Walker was their agent in Fort Smith, Ark., under a contract signed by him and two bondsmen to guarantee his fidelity in office.

In June 1900 plaintiff discovered forgeries and defalcations committed by Alex Walker aggregating about $4200.00.

This was settled by the acceptance of Alex Walker’s individual notes for one half the amount, say $2100.00, and his and his [455]*455brother’s, (the defendant) joint and several notes at $50.00 for the other half.

The record shows the first note to have been paid by defendant, but, defaulting in the payment of the others, defendant was sued to recover on nine of the notes, aggregating $450.00, for which plaintiff obtained judgment which was paid by defendant.

The present suit is to recover $800.00 with interest represented by 16 notes of the same series sued on heretofore.

The defendant in his answer claims that the notes were given under duress ,as his brother was threatened with a prosecution for forgery; and secondly, that the consideration was illegal because the plaintiff agreed to stifle a criminal prosecution.

Defendant further urged a plea in reconvention for amounts paid prior to and under the judgment referred to above, and for cancellation or return of the other notes.

Judgment below was for plaintiff and dismissed the demand in reconvention, from which judgment defendant prosecutes this appeal.

The reconventional demand having been abandoned in this Court we need not consider it at all.

At the outset it may be stated that there is no dispute that Alex Walker was a defaulter and forger and that plaintiff’s had ben victimized by him to the extent of $4200.00.

Taking up the first defense, to-wit: “That the notes were given under duress, as his brother was threatened with a prosecution for forgery,” we find codal provision to be (Art. 1852 C. C.) “A contract, produced by violence or threats, is void, although the party in whose favor the contract is made; did not exercise the violence or make the threats, and although he was ignorant of them.”

Our examination of the testimony and correspondence found in the record satisfy us that such threats were made as to render the contract invalid under the terms of the Code. The letters addressed to defendant by plaintiffs, and particularly that of date May 19th, leave no room to doubt that they contained but idly covered threats of criminal prosecution against defendant’s brother unless the former agreed to assume the payment of the [456]*456defalcation. In the letter of May 19th, 1900, we observe this passage, which was certainly intended to alarm, and in the end, coerce the defendant into action, as follows: “We have the kindest feeling for Alex and are doing all in our power to shield and protect him, but we know positively that if we are forced to proceed against his bondsmen, that they will not be charitably disposed towards him, one of them, Dr. Badley is very bitter on account of Alex being forced to testify in a suit against him, and if the matter is broached to him, it will immediately result in a prosecution.

We find that several letters had been written defendant by plaintiffs prior to ,the one above quoted, but in none of these was the idea of a public prosecution more than hinted at, but here plaintiffs cautiously say, we will not prosecute him, but we will proceed against his bondsmen, and one of those will be only too glad of the opportunity to send your brother to the penitentiary.”

A Mr. Milton Boyd, brother-in-law of Alex Walker, who subsequently supplanted Alex as plaintiff’s agent at Fort Smith, Ark., after consulting the Mr. Williams of plaintiff firm urges upon the defendant that unless he come to his brother’s rescue, the latter cannot escape prosecution. This communication, under the authorities, must be taken and considered as amanating from plaintiff. Schultz vs. Catlin N. W. Rep. 946.

It cannot be doubted that this is a threat, an express one, and which appears to have brought the defendant to a sense of the awful consequences to himself and the honored family name, because a few days later the defendant arranged for a settlement of his brother’s obligation by executing the notes to cover the defalcation.

It is clear that these notes were given under dures of threats to bring about a criminal prosecution but the defendant having acquiesed in and ratified the contract by payment of the first notes after the threats of prosecution had been made, is now estopped from setting up the first defense. The express ratification of the contract after the danger has ceased will not invalidate the same for threats or violence.

[457]*457Article 1855 C. C. provides: “No contract can be invalidated on an allegation of violence or threats, if it has been approved either expressly after the violence or danger has ceased, or tacitly by suffering the time limited to elapse without causing it to be rescinded.”

We are of the opinion however that the second defense, “that the consideration was an illegal one because against public morals and policy, is fully sustained by the evidence and in consequence defendant cannot be held liable on the notes given in settlement of his brother’s criminal lashes.

Counsel for plaintiff urges strongly that unless the' defendant, upon whom the burden or proof admittedly is, can show the existence of an express and positive agreement to stifle a criminal prosecution, the contract is valid.

The evidence found in this, record may not be an express agreement in the sense intended by counsel, but it is of such a character as to point conclusively to what was in the minds of the persons to the agreement at the time It was consummated.

Certainly, in the case at bar, the parties plaintiffs and theii advisers were too shrewd, as shown by the correspondence, to enter into an open and precise agreement looking to the settlement of their claim against defendant’s brother which should stipulate in so many words, “that provided restitution was made there should follow no criminal prosecution.” The correspondence following Norman Walker’s determination to help out his erring brother establishes beyond the peradventure of a doubt in our opinion, that the settlement made by defendant was intended to close the matter and so understood by both plaintiffs and defendant.

Your favor to hand and it gives us much pleasure to know that you will sign the notes with Alex as agreed upon, for this now zvill settle the zvhole matter.

When we consider the long correspondence between the parties and the frenuent mention of impending prosecution if the matter is not settled, it is reasonable to assume that plaintiffs expression “this now will settle the whole matter” meant that there should not be a public prosecution. In the light of the circum[458]*458stances brought out in this case it strikes us that any other assumption would be absurd.

Now let us see what was defendant’s understanding of the agreement. When on the witness stand he is asked.

Q. Mr.

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3 Teiss. 454, 1906 La. App. LEXIS 88, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yowell-v-walker-lactapp-1906.