v.
Richard Probasco
Lead Opinion
The opinion of the court was delivered by
“$550.00. Atchison, Kas., Dec. 1,1871.
“ One year after date I promise to pay to Richard Probasco, or bearer, five hundred and fifty dollars, value received, payable at Exchange Bank, with interest at 12 per cent, per annum from date until paid, and payable semi-annually.
“William M. Ayres.”
The other note is precisely the same as the above, except that it is made payable in “two years after date,” instead of in one. The two notes together amounted to $1,100. O’Dris [*185] coll and-Challiss then filled up the said blank mortgage so as to make it correspond with said notes, and so as to make it a security for the payment of said notes, O’Driscoll doing the principal part of the writing. They filled up the blank for the description of the land with the same land that hád prior to that time been mortgaged to Symns; and they made Probasco the mortgagee. The notes and the mortgage were then delivered to Challiss, as the agent of Probasco, and in consideration therefor Challiss paid Ayres $1,000, and only $1,000. Ayres, being present all the time, agreed to all that was done/ and ratified and qonfirmed the same. He therefore has no right to raise any question of mere irregularity in the execution of said mortgage. But the question of the execution of said mortgage is one of power, and not a question of mere irregularity, as we shall presently see. After Ayres received said money from Challiss he paid off the mortgage to Symns therewith. The notes and the mortgage to Probasco are the instruments upon which the present suit is brought.
The judgment of the court below will be reversed, and cause remanded for a new trial.
Concurrence
I concur in all the propositions of the syllabus except No. 5, and also in the reversal of the judgment; but it seems to me, that the principles of the case of Swift v. Kreamer, 13 Cal., 526, are applicable here, and should control 'the future disposition of this case.
Rehearing
THE CASE ON RE-HEARING.
The foregoing opinion was filed Jan. 19th 1875. A motion [*192] was made by defendant in error, Probaseo, for a rehearing. Said motion was heard and submitted at said term. Said motion was argued orally by W. W. Guthrie, on the part of Probaseo, defendant in error. The points stated in his bi’ief are sufficiently stated in the following opinion, overruling said motion, which was filed June 29th, 1875:
The opinion of the court was delivered by
Valentine, J.: The defendant in error moves the court for a rehearing in this case. And in his brief and o'ral argument urges many reasons why he thinks a rehearing should be granted. Among his reasons are these — that the court has mistaken the facts of the case; the court has mistaken the law; the decision was by a divided court; the principal question in the case had been settled otherwise, in the case of Knaggs v. Mastin, (9 Kas., 532;) Mrs. Ayres by her subsequent acts has ratified the mortgage sued on, and is now es-topped from claiming that it is not her mortgage, or that it is void, etc. We shall consider the principal reasons he offers for a rehearing, as we pass along. That Mrs. Ayres executed nothing but an ordinary “blank mortgage,” there is not the slightest room for controversy. All the evidence upon the subject, and the findings of the jury, incontrovertibly show it. On December 5th, 1871, O’Driscoll procured an ordinary blank mortgage and handed it to E. W. Stratton, the justice of the peace before whom the acknowledgment was taken. Said justice then took this blank mortgage to the farm of Ayres and wife, and then and there took their signatures and acknowledgment, and then returned the blank, with merely said signatures, and the acknowledgment filled up, to O’Driscoll, at his office in Doniphan, Doniphan county. Mrs. Ayres never saw the instrument afterward. On the next day, December 6th, Ayres and O’Driscoll went to Atchison, Atchison county, when and where the transactions out of which this action arose were finally consummated. They took with them said blank mortgage. The facts so far are incontrovertible. [*193] We shall now quote from the evidence what some of the principal witnesses say with regard to the transactions at Atchison. W. L. Challiss among other things testifies as follows:
“When I first saw the mortgage, the name ‘Richard Probasco’ was not in it. W. W. Guthrie was present. He was acting as my attorney. ‘$1,100’ was not in it. O’Driscoll wrote this. The name of Richard Probasco was written in it afterward. Mrs. Ayres was not present. Don’t know that Mrs. Ayres knew that $1,100 was written in it. All was filled up over the acknowledgment except ‘Richard Probasco of the state of Maryland,’ ‘eleven hundred dollars,’ and ‘eleven hundred dollars, payable in one and two years with interest at the rate of 12 per cent, per annum semi-annually payable.’ I think the word ‘his’in the 8th line is in Mr. Guthrie’s handwriting. Also the word-‘two’ in the 21st line of the mortgage. Also the letter ‘y,’ in the 23d line; and the letter ‘y,’ and the word ‘his,” in the 24th line,' are in Mr. Guthrie’s handwriting, and perhaps some other letters and words. The words, ‘of the county of Atchison, and state of Kansas,’ were not stricken out of it when I first saw it. They were stricken out afterward I think, by myself. Mrs. Ayres was not present. I had no authority from her to change this mortgage.” * * * “Richard Probasco lives in Maryland. I was acting as his agent. Guthrie wrote the words, ‘Richard Probasco of the state of Maryland,’ in the office on the 6th of December 1871, after negotiations for the loan were effected, and papers filled up and executed. ‘Richard Probasco of the state of Maryland,’ was written in by Guthrie, and the words ‘of the county of Atchison, and state of Kansas,’ were erased by me. -I first saw O’Driscoll and Ayres on the 6th of December, about this matter, after dinner, about 2 o’clock, when the matter was all arranged. The money was paid in my office in Atchison. After negotiations had been concluded, I took the mortgage to Guthrie to be examined. He inserted the words, ‘Richard Probasco of the state of Maryland,’ and made some other slight alterations. I returned the mortgage back to O’Driscoll, and he delivered it back to me after the money was paid, along with the notes.”
O’Driscoll testifies —
“The mortgage was not after it was filled up ever sent back to Mrs. Ayres. When I delivered it to Challiss, it was [*194] certainly in blank except the acknowledgment, and perhaps the date and the signatures.” [This has reference probably to the first delivery of the mortgage to Challiss. What follows has reference to the last and final delivery:] “The name of Richard Probaseo was not in it when I delivered it to Challiss. The amount was put in after I made the formal delivery. It was not passed back to me after the name of Probaseo was inserted in it. It never came back to me. Challiss took the mortgage with the full knowledge that the grantee’s name was not in it. I never directed Guthrie to write the name in the mortgage, nor was it done in my presence.” * * * “ I never had the mortgage in my hand after the ‘ $1,100 ’ was inserted. I am not sure the ‘$1,100’ was put in after Challiss went to dinner, but I am sure Probasco’s name was not in it while Challiss was gone to dinner. Challiss asked to take the mortgage and have it examined -by his attorney. After dinner he produced the mortgage, and laid it on the table with the quitclaim deed. When the notes were drawn up and the papers signed, I delivered the mortgage not filled up as now.”
William M. Ayres testifies:
“ It [the mortgage] has never been in my hands nor under my control since it was taken from my house by Stratton. This mortgage was never under my control after acknowledgment by Stratton. Don’t know who filled up the mortgage. Don’t think I ever saw it after acknowledgment.”
From the circumstances of the case we would think that Ayres must have at least seen the outside of the mortgage after the acknowledgment was taken, that he must have been informed as to what it contained after it was filled up, and that he must have assented to it. The evidence however is conclusive that Mrs. Ayres never saw the mortgage after her acknowledgment was taken at her house by Stratton, the justice. Mr. Guthrie did not testify in the case. There is no pretense that Mrs. Ayres ever in writing authorized any person to fill up said blank mortgage. There is no pretense that she ever in any way authorized any person except O’Driscoll to fill it up. The evidence is positive that she did not authorize her husband to do so! And the only authority that O’Driscoll got is shown merely by inference and implication.
[*195] Mrs. Ayres testifies:
“I never gave O’Driscoll any authority to fill up this mortgage over my name; never had any talk with him or Challiss.”
[*196]
[*200] Motion overruled.
[The following is the section of the Kansas Statute of Frauds, referred to by the court:
“Sec. 5. No leases, estates or interests, of, in or out of lands, exceeding one year in duration, shall at any time hereafter be assigned or granted, unless it be by deed or note in writing, signed by the party so assigning or granting tlie same, or their agents thereunto lawfully authorized by writing, or by act and operation of law.” — (Gen. Stat. of 1868, p. 505.)
The following is the corresponding section of the Wisconsin Statute of Frauds, to-wit:
“Sec. 6. No estate or interest in lands, other than leases for a term not exceeding one year, nor any trust or power over or concerning lands, or in any manner relating thereto, shall hereafter be created, granted, assigned, surrendered, or declared, unless by act or operation of law, or by deed or conveyance in writing, subscribed by the party creating, granting, assigning, surrendering, or declaring the same, or by his lawful agent thereunto authorized by writing.” — (Rev. Stat. of Wis., 1858, p. 613; 2 Taylor’s Scat., p. 1254.)
Under this section the supreme court of Wisconsin held in Smith v. Clarke, 7 Wis., 551, 564, that an assignment of a school-land certificate in blank, was void. In Vliet v. Camp, 13 Wis., 198, it was held that a warrant of attorney to confess judgment upon a note, which described the note as to makers, date, amount, and rate of interest, and name of attorney, but which warrant, when executed, was in blank as to the payees named in the note, but was properly filled by the attorney named before confessing the judgment, was valid, and the judgment rightly confessed. The case as reported shows that the note itself, containing the names of the payees, was written on the same sheet of paper as the warrant of attorney. The point was not raised, that the authority of the attorney to fill the blank was not in wi'iting. It was claimed on the one side that filling the blank was a maternal alteration of a written instrument, and on the other that it was an immaienal alteration. In Van Etta v. Evenson, 28 Wis., 33, (cited in the text by counsel for defendant in error, and referred to in the opinion,) the facts are these: One Hegg had negotiated with an agent for a loan of money for himself, but did not know the name of the principal. He made his note which was signed by himself and by his stepfather, Evenson, complete in all respects except as to the name of the payee, which was left blank. A mortgage to secure said note was made by Evenson and wife, complete in [*201] all respects except as to the name of the mortgagee, which was left blank. The mortgage was delivered to Hegg to be used by him as security for the money to be obtained on said note. He took the note and mortgage to the agent, where he learned the principal's name, (Van Etta,) which he then and there inserted as payee and mortgagee. Evenson afterward claimed that the mortgage was void. The court said, (28 Wis., 37,) “The only question of law in the ease is as to the authority of Hegg thus to fill the blanks,” and that while it did not appear that Evenson “ directly or expressly authorized Hegg to insert the name of the plaintiff or of any particular person,” yet “ his authority to do so, if it existed, is to be implied from the facts and circumstances of the execution and delivery of the papers,” from which such “intention” of Evenson “is clearly manifested and, following the case of Vliet v. Camp, supra, the court held that “ the subsequent insertion of the name of the payee and mortgagee by Hegg was a valid execution of an implied authority that the same should be so inserted by him.” .In the case in this court (Ayre:; v. Probasco) the “mortgage” was m blank as to the landitself, the amount loaned, the rate of interest, date of the note, and day of payment, as well as to the name of the mortgagee, when signed by Ayres and wife. — Reportes.]