Magee v. Snyder
Magee v. Snyder
Opinion of the Court
The opinion of the court was delivered by
Snyder sold on time a restaurant to the Roushes for $500, Magee signing the note as surety. Snyder sued on the note, and Magee paid him $250 on condition that he be released from any further liability, and that any judgment which might be recovered should be assigned to him to the amount of $250, with interest, the assigned portion of the judgment “to be due and payable . ■. . when the full amount of said note and interest sued upon herein is paid with the costs of the above entitled action.” Snyder recovered judgment for $591.75. A good many years afterwards, without the knowledge of Magee, he entered satisfaction of this judgment upon the records in
Later, judgment was rendered for the plaintiff, and upon passing on the motion for a new trial findings of fact were made. These were, in substance, that for a valuable consideration Snyder transferred to Magee an interest in the judgment that might be rendered, setting out the written assignment and contract; that .the judgment rendered in 1908 was revived in June, 1915; that in April, 1916, Snyder, without the knowledge of the plaintiff, entered satisfaction, receiving from the Roushes the two notes, the one for $400 being made payable to the daughter, to whom Snyder was indebted in the sum of about $400; and that by agreement between Snyder and the daughter the note was executed to her in payment of his debt, the daughter taking it in good faith and without knowledge of the agreement between Snyder and Magee.
As a matter, of law it was concluded that the plaintiff was the owner of and entitled to recover an interest in the notes to the amount of his claim of $250,. with interest, and it was ordered that the notes be held within the jurisdiction of the court, and when paid the plaintiff was to receive therefrom the amount due him, the remainder to go back to the daughter or such person as she might direct.
The first complaint of the defendants is that the plaintiff’s
Counsel argues that Magee, having alleged that the Roushes misrepresented their ability to pay and thereby fraudulently procured the satisfaction of the judgment, should have proceeded against the Roushes to set aside the release. But whatever he might have done in this respect could not deprive him of his right to proceed against Snyder on his liability under the contract and arrangement by which the interest and the judgment were assigned to Magee.
It is next contended that it was as much to the plaintiff’s interest to see to the collection of-the judgment as Snyder’s, and that because he learned of the ability of some of the Roushes to pay he should look to them, and not to Snyder. But when Snyder entered satisfaction of the judgment he thereby entered of record a solemn declaration that the judgment had been collected, which was in effect an admission that he was under obligation to pay Magee his portion thereof, and, having done this, he cannot be heard now to complain that Magee seeks to hold him on his contract.
It is further contended that the taking of the notes was not a collection or payment of the judgment as required by the terms of the written assignment, but the judgment and order provided that when the notes were paid the proceeds were to be applied first to the liquidation of the Magee interests, and of this Snyder cannot complain.
It is insisted that if Snyder owed both his daughter and Ma-gee he had a right to prefer either one as a creditor. This is
It is argued that the assignment was without consideration and void, because by paying the $250 Magee was simply fulfilling an obligation already resting on him. According to the answer of Magee in the original suit, he signed the note on condition that Snyder take a chattel mortgage upon the restaurant property as a protection to Magee for signing the note as surety, and Snyder had sold and disposed of the mortgaged property, which was worth $700. It is suggested by counsel that Snyder, rather than be compelled to show how much he sold the restaurant for, chose to settle with Magee for $250 and the transfer of the interest in the judgment. Magee testified that after he had filed his answer in that action he understood a settlement was made so far as he was concerned, that he paid Snyder under the contract $250 and did not prosecute his case any further so far as his rights were concerned. He also testified that there was plenty in the restaurant to pay all of the note, and that he paid $250 to Mr. Snyder and abandoned his defense to Snyder’s action on the strength of the agreement. Hence, the finding that the assignment was for a valuable consideration is not without support in the evidence.
The mere failure to pay taxes on his interest in the judgment did not preclude a'recovery by Magee. (Johnson v. Harvey, 83 Kan. 471, 112 Pac. 108.)
The judgment is affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.