Freed Finance Co. v. Preece
Freed Finance Co. v. Preece
Opinion of the Court
Appeal from a judgment for plaintiff in a case involving liability under an alleged written guarantee. Reversed with instructions to dismiss the complaint as to defendant Wm. V. Preece. Costs to appellant.
Wm. V. and W. J. Preece, father and son, for many years were partners dealing in automobiles. In 1954, shortly before the father was to leave on a mission for the dominant church, he signed a general power of attorney authorizing his son to act in his stead. It is uncontroverted that this power of attorney, with one exception, was rtsed only to receive and send checks to the father, or to place them in his account for the purpose of defraying the latter’s expenses while on the mission, which lasted approximately two years. Only on one other occasion, about 5^4 years after the father’s return, did the son assert any authority under the power of attorney, which for the first time occurred in the trial of this case.
For years the plaintiff, Freed, had financed the partnership, and a corporation later formed in 1959, owned by the two Preeces, with respect to car loans. The son apparently operated the business, which suffered financial difficulties in 1960. In February of that year, Freed, in an effort to help salvage the business, advised the son that further funds would be available only on the sole condition that he and his father personally sign a guarantee of the corporation’s obligations, and that time-was of the essence.
It is undisputed that on the same day the son deposited a guarantee agreement with Freed that ostensibly was signed by both father and son; the father had not signed, but on which the son signed his father’s' name, without the knowledge or authority of the father, and without apprising Freed' that his father had not signed; that Freed accepted the document, assuming the father actually had signed, relying on such assumption, without any knowledge of or any reliance upon any power of attorney or authority on the part of the son to act on behalf of his father.
Then came the earth tremors,- — this lawsuit to recover unpaid advances by Freed. After considerable procedural sparring and lawyer talk, the important matter of evidence was indulged.
There was a lot of testimony with respect to whether the power of attorney had died on the demise of the father’s mission assignment. Neither father nor son could remember the conversations immediately prior to the former’s departure, but repeatedly both said the power of attorney was executed to take care of the father’s affairs only during the time he was absent.
■ The only evidence drawn out by Freed’s counsel was to the effect that the father and son, both of whom he called as witnesses, were hazy and uncertain as to conversations had about 7 years before and that there was no definite understanding as to a definite termination date of the power of attorney, — except,—-that both repeatedly indicated that the authority was intended to continue only during the time father was on a mission. We think this conclusion to have been substantiated not only by non-user of the power of attorney for at least years after the father returned, but by the belated, and self-serving statement of a son faced with an embarrassing situation, that “Well, at the time * * * I made out the financial statement and signed it, and my father not being available to sign it, I signed it and at the time I know it run through my mind, well, I have got a power of attorney, I mean if it is questioned.” This, without telling Freed the facts and in an obvious attempt, by using two different types of handwriting, to obfuscate the circumstances, the truth of which, known to Freed, no' doubt would have led to no loan, or, if granted, clearly would have required an unqualified, un-obscure, binding promise upon which Freed safely could have held the father without all the rather fanciful, belated peripatetics indulged in this case in what we think was a time-rusted, self-serving effort to circumvent a known, but undisclosed indiscretion.
Reference
- Full Case Name
- FREED FINANCE COMPANY, a corporation, and v. W. J. PREECE, William V. Preece and Preece Motor, Inc., a corporation, William V. Preece, and
- Cited By
- 1 case
- Status
- Published