Beeler v. Highland University Co.
Beeler v. Highland University Co.
Opinion of the Court
The opinion of the court was delivered by
This is a suit by the defendant in error against the plaintiffs in error upon a promissory note payable five years after date, as follows :
“Highland, Kan., June 1,1885.
“ On or before five years after date, we promise to pay to the order of the treasurer of Highland University $200, for value received, and payable without defalcation or discount, and with interest payable semi-annually from date until paid at the rate of seven per cent, per annum, at Highland, Kansas ; and if the interest is not paid punctually when due, it shall become a part of the principal and bear interest at the same rate. This note is given for the endowment fund of Highland University. The interest only to be used for general expenses.”
On the back thereof is written :
“This note to be void unless the first $20,000 is secured by September 1, 1885. And if the school ever fails to go forward the principal reverts to the giver.”
Plaintiff demurred to the plea of the statute of limitations, and its demurrer was sustained. Plaintiff filed a reply to the other counts of the defendants’ answer, which contained : (1) A general denial; (2) a special denial that there were any conditions attached to the note sued on except such as were set out in the note, and an allegation that they were complied with ; (3) the claim that no representations were made to the ■defendants to procure the note sued on herein ; that the defendants attached thereto such conditions as they saw fit and such conditions were generally understood among the donors to the said endowment fund,
The burden being on the plaintiff to show that the conditions on which the note was to be valid had been performed, or had happened, it offered the oral evidence of Duncan Brown, who solicited the subscriptions, and who was at the time one of the trustees of the university and authorized by the board to solicit the donations, who testified that J. P. Johnson and Doctor G-anse, secretary of the board of aid for colleges of the Presbyterian church, had a conversation in which Johnson proposed to give the college $10,000 on the condition that the citizens of Highland and vicinity would give a like $10,000 to endow the first chair in the university; that the conversation was reduced to writing, a typewritten copy furnished to him, and that he had copied that in a little book of his own; that the same had been read, either from the typewritten copy or his book, at a public meeting, before he began taking subscriptions and before any
“ Q,. Did Mr. Johnson subscribe anything? A. Yes, sir.
“ Q. How much ? ” Objected to by the defendants as incompetent and not the best evidence.' This objection was overruled and excepted to. “A. $10,000.
“ Q,. Now, I will ask you whether or not these subscriptions were obtained before September 1, 1885 ? A. They were.
“ Q,. Where you have testified to notes having been given, do you know whether or not they were given to you individually for the university ? A. No, sir, not in every case.”
The plaintiff then called its treasurer and asked whether Mr. Gates fulfilled his subscription by cash or by note prior to September 1, 1885. This was objected to as incompetent, irrelevant, and not the best evidence. The objection was overruled and excepted to, and the witness answered that Mr. Gates gave a note. 'He then testified that a number of other subscribers gave notes, and that as to others he knew nothing. The plaintiff then rested its case.
At the conclusion of the plaintiff’s evidence, the defendants moved to strike out all of the oral testimony of Duncan Brown and Treasurer Allen as to the subscriptions being made to the endowment fund as a performance of the condition in the note, which motion was denied by the court, the defendants excepting. The defendants demurred to the evidence for the reason that it was not sufficient to establish a cause of action against them. This demurrer was overruled and an exception to that ruling allowed.
The first specification of error is that the court erred in sustaining the plaintiff’s demurrer to the second count of the defendants’ answer, pleading the statute of limitations as to the interest. It was the agreement that if the interest was not paid it should become a part of the principal and likewise draw interest. It seems to have been intended by the parties, that the makers might, at their option, pay the interest or not; and if they did not, that it became a part of the principal of the endowment and drew interest-thereafter. So that no cause of action therefor really accrued independent of the note itself. So long as. the note remained a valid cause of action, the interest likewise-followed it.
It is next claimed that the court erroneously overruled their demurrer to the plaintiff’s evidence. The ground on which this contention rests is that the evidence did not show that the condition on which the note was to be payable had happened or been performed, and that it did not show that the plaintiff'
In rebuttal, for the apparent purpose of attempting to show that the plaintiff had, relying upon this subscription, done something that would constitute a consideration for the promise to pay, the following question was asked of Duncan Brown, who was recalled on behalf of the plaintiff: “Did you intro
For the apparent purpose of attempting to show that the college had so far performed the conditions on which Johnson had agreed to pay interest on $10,000, in rebuttal the plaintiff propounded to the witness Brown this question : “Do you know whether the presbytery of Highland approved of the act of the legislature in transferring the control of Highland University to the synod of the old Presbyterian church of Kansas — do you know whether the presbytery took any action on it?” This was objected to as being incompetent and calling for a conclusion of the witness. The presbytery could only take action, as we all must know, in the ordinary mode in which a body of men assembled officially act. If there was no record of such action retained, then secondary evidence might be used, but it was incompetent to show by oral testimony what the presbytery had done with
The sixth assignment of error is that the court refused to give to the jury the instructions requested by the defendants numbered 6, 8, and 9. The sixth request was as follows :
“The jury are instructed that if they find from the evidence that the note sued on was executed to plaintiff on the promise and agreement made with them that the note of one John P. Johnson should be of the same tenor and effect, and with only like conditions*99 as the note sued on, and the subscription of John P. Johnson was necessary to complete the endowment of $20,000, the jury will return a verdict for the defendants.”
It is claimed that Johnson gave no note whatever or that he gave no obligation to pay $10,000 at any time, except as hereinbefore stated. It is clear from the record, as well as from the note itself, that the proposed payment of $200 by the defendants was a conditional promise, conditioned on the subscription of full $20,000 to endow the first chair of the university. If, at the time these subscriptions purported to be made, they were for any reason not valid and binding subscriptions to pay money for the endowment of the chair, the defendants would not be held on their promise. This is the purport of the instruction requested and it should have been given. It is likewise true that if a part of the subscription for the enterprise failed by the act or neglect of the plaintiff, or the purpose for which the defendants proposed to pay the $200 failed by reason of the act and neglect of the plaintiff, it could not enforce payment from the defendants.
The eighth request was as follows :
“The jury are instructed that the subscription of J. P. Johnson depended for its validity upon the conditions therein named, and unless the Highland University Company complied with the conditions therein named said J. P. Johnson could avail himself to defeat the collection of his subscription.”
This instruction should have been given to the jury.
The ninth request was as follows :
“ Where a subscription is made as a donation, as ini this case, by one, on the promise that others shall, make like donations, the consideration of an instrument so executed and its validity depend upon the*100 completion of the subscriptions in the amount and character contemplated. And if the jury find from the evidence that the defendants executed the note sued on as a donation to the endowment fund of the Highland University in the sum of $20,000, the balance of said subscription to be made by others, and with like binding effect, and the jury find from the evidence that other subscriptions of like effect necessary to make up said'subscription of $20,000 by September 1, 1885, were not made, they, the jury, are instructed that the consideration of the note sued on had wholly failed, and the jury will return a verdict for the defendants.”
This should have been given to the jury in connection with the eighth request. (24 A. & E. Encycl. of L. 328-331, and note 3 on p. 331 and cases there cited; The University of Des Moines v. Livingston, Administrator , 65 Iowa, 202, 21 N. W. 564.)
The seventh assignment of error is that the court erroneously instructed" the jury in its eighth, ninth and tenth instructions. The eighth instruction was as follows :
“You are further instructed, that the condition in regard to the school going forward does not mean that the school shall improve, either in regard to attendance of scholars, the buildings, or higher discipline and scholarship, but simply that the school shall continue to be carried on in a reasonably successful manner.”
The contention is over the clause in the note which provides that in case the school ever fails to go forward the principal reverts to the giver. The construction of the court, on the face of the note and the surrounding circumstances at the time of its execution, seems to be the correct one. The note never became valid unless the chair was permanently endowed by the securing of $20,000 as proposed. This condition nec
The ninth instruction complained of was as follows :
“The court further instructs you, that if the defendants knew that one John P. Johnson had made a proposition to the plaintiff that if the people in Highland and vicinity would donate $10,000 toward the endowment of a chair in Highland University without inquiring as to whether any conditions were attached to said Johnson’s offer, agreed to subscribe $200, then they would become privy to the offer of said Johnson, and all conditions thereto attached, and could not complain of the same and offer any of the conditions as a defense unless the same was misrepresented by plaintiff’s agent and he was misled thereby.”
This instruction is not applicable to the facts in the case. There is no contention but that this subscription by the defendants was conditioned upon the raising of $20,000, and the contention is that the Johnson subscription is a valid subscription and a part thereof. It was competent for the defendants to show that the consideration to them had failed by showing that Johnson’s subscription was an invalid one, and was in fact no subscription at all. And it is further undisputed that the defendants at the time they made the subscription knew nothing about the conditions of Johnson’s offer except what was disclosed to-them by Duncan Brown. The court committed error in giving this instruction.
“ The court further instructs the jury, that the fact of the defendants subscribing $200 to the endowment fund makes them privy to J. P. Johnson’s offer if they were fully conversant with its terms, and they cannot be heard to say that said Johnson was to execute a note similar to the one sued on, as the Johnson offer as known to them contained the terms thereof.”
The same remarks apply to this instruction as were applied to the ninth. It might be further pertinent to say that it is not disclosed anywhere in the record, save by one finding by the jury, which is unsupported by the evidence, that the defendants knew of the conditions attached by Johnson under his alleged subscription. Indeed, it is conceded that the contract of Johnson was not made and was not known until long avfter the defendants’ note was given.
By the eighth assignment of error the defendants complain that the court refused to submit to the jury certain special findings requested by them. The first request complained of was the following : “ Did said John P. Johnson, about June 1, 1885, execute and deliver to the plaintiff his subscription of $10,000 in writing to said endowment fund with other additional and different conditions?” There was no question about this. It was unnecessary to submit the question to the jury.
The seventh special finding requested was: “How many professorship chairs have been endowed in said university?” The purpose of this was to show the invalidity of Johnson’s subscription, and was proper to be submitted to the jury. The same remarks apply to the eighth request, as to whether additional chairs had been established as provided by the Johnson subscription. The same remarks apply to the ninth and tenth. The twelfth was immaterial. There was no question but that the fund, so far as it had been paid
The seventeenth was a broad interrogatory as to whether the conditions on which Johnson proposed to pay the interest on $10,000 as a part of the endowment fund, according to the terms of his written obligation, had been complied with by the university. Whether the conduct of the university had rendered the half of the subscription invalid within the time which the defendants took to pay their donation, and by reason of that act the object or purpose of the donation had become ineffectual, or had failed, was an important question to be decided in the case. The request should have been granted.
The ninth contention is that the court erred in overruling the motion of the defendants for judgment on the findings of fact. The findings of fact were not sufficient to entitle either party to a judgment thereon irrespective of the general'verdict. The motion was properly denied. The tenth assignment of error is that the court erred in refusing to set aside the verdict and special findings of the jury and grant a new trial. For the reasons hereinbefore stated a new trial should have been granted, and it was error to deny the motion. Some of the important special findings are without evidence to support them.
The judgment of the district court is reversed, and the case remanded with directions to the court to sustain the defendants’ motion for a new trial.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.