Moore v. Craig

EDMONDS, J., pro tem.

The defendants appeal from a judgment entered against them on a promissory note, challenging the findings of the court as being insufficient to support the judgment.

The complaint alleges the execution and delivery by the defendants of a promissory note dated in January, 1929, due one year thereafter, and payable to one Hull; its endorsement .and delivery by Hull to one Topham, in July, 1929; its endorsement and delivery by Topham to Weaver Lumber Company in October, 1930, and the appointment of plaintiff as the latter’s trustee in bankruptcy after adjudication. The answer affirmatively alleges on information and belief that Hull did not endorse or deliver the note to Topham at the time alleged or at all, and denies on information and belief that Topham transferred the note to the lumber company.

For a further defense the defendants allege that they executed and delivered the note sued upon as part of the consideration for a store and office building purchased from Hull; that as a part of that transaction Hull agreed that he would procure the cancellation of a lease on one of the stores, but that he never did so; that after May, 1929, they first learned that Hull would not comply with his agreement and for that reason refused to make further payments on the note. They also allege that by reason of the failure of Hull to perform his contract they were damaged in various ways. As an additional defense the defendants allege that Hull represented the building to be of steel construction and capable of supporting additional stories, which representations were false and resulted in damage to them.

The trial court found specifically that all of the allegations of the complaint were true and then found as follows: “XIII. That the allegations contained in defendants’ answer, and in the first amendment to defendants’ answer are not true, in so far as said allegations are in conflict with the foregoing findings of fact. XIY. That the purported defense of the defendants in said original and amended answer, based upon the existence of a lease on one of the storerooms in said building, is not supported by the evidence,

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and that the allegations of said defense are not true. XV. That the purported defense of the defendants in said original and amended answer, based upon the type of construction of the Hull Building, and the alleged representations of the payee of the note regarding said construction, is not supported by the evidence, and that the allegations of said defense are not true.”