Title: Geer v. Farquhar

State: oregon

Issuer: Oregon Supreme Court

Document:

528 P.2d 1335 (1974)
W.C. GEER, Respondent,
v.
Ken FARQUHAR, Appellant,
Oceans West Development Corporation, an Oregon Corporation, Defendant.

Supreme Court of Oregon, In Banc.
Argued and Submitted October 7, 1974.
Decided December 12, 1974.
Gerald R. Pullen, Portland, argued the cause and filed a brief for appellant.
Derryck H. Dittman, Tigard, argued the cause for respondent. With him on the brief were Anderson, Dittman & Anderson, Tigard.
Before O'CONNELL, C.J., and McALLISTER, HOLMAN, TONGUE, HOWELL, SLOPER and LEAVY, JJ.
*1336 SLOPER, Justice Pro Tem.
This is an action at law on a promissory note executed by defendant Farquhar in the names of defendant Farquhar and Oceans West Development Corporation. The note was on a standard form printed note and defendant Farquhar filled in the appropriate blanks. The note was signed by defendant Farquhar with his signature which was followed by a dash and the words Oceans West Dev. Corp. which were printed. Trial was had to the court upon a waiver of jury trial, and from a judgment in favor of plaintiff and against both defendants, defendant Farquhar appeals.
Defendant Farquhar's sole assignment of error is that there is no substantial evidence to support the court's finding of fact that defendant Farquhar was individually and personally liable upon the note and that the court erred in failing to sustain defendant's affirmative defense that he was acting as a corporate officer. Defendant on page one of his brief distills the question presented on appeal simply to whether plaintiff while testifying at trial made a binding judicial admission which would exonerate defendant Farquhar from personal liability.
The trial court concluded that its review of the conflicting evidence that plaintiff had established a case against both defendants. Our review of that finding is limited to a determination of whether the trial judge's decision is supported by any competent, substantial evidence, and in such examination we consider the evidence in the light most favorable to plaintiff, who is entitled to the benefit of all favorable evidence and the inferences which may be reasonably drawn therefrom. Krause v. Eugene Dodge, Inc., 265 Or. 486, 490, 509 P.2d 1199 (1973); Emerson v. Western Photo-Mount Co., 267 Or. 562, 564, 518 P.2d 171 (1974); Carlson v. May Department Stores Company, Or., 527 P.2d 252 (1974).
Wesley Geer, plaintiff, was employed as a foreman and carpenter for defendant Oceans West Development Corporation on a fourplex project, in Newport, Oregon, during the spring of 1971. Oceans West had been formed by Farquhar and a Mr. Randolph and they were the only persons interested in the corporation at the relevant time. Farquhar was president of the corporation and was plaintiff's immediate supervisor on the job. Farquhar would periodically come to the job site and bring the payroll for plaintiff and other employees. Around the end of April, Oceans West ran out of money to complete the project. This fact was communicated to plaintiff by defendant Farquhar. Plaintiff understood that approximately $2,000 was needed to complete the project and he advised Farquhar that he was willing to loan him the sum of $2,000. He was motivated in making the loan by the desire to have continued employment. Plaintiff took the $2,000 from his savings account and gave it in cash to Farquhar, who, in turn, gave plaintiff the promissory note which is the basis of this case. The form note was filled out and executed by Farquhar, as noted above, and the funds received from plaintiff were, in fact, used for the building project. Plaintiff had advised Farquhar that he wanted a note to secure the contemplated loan and advised him that he wanted both signatures on the note, both signatures being Oceans West Corporation and Farquhar.
Defendant Farquhar contends that an answer given by plaintiff during his direct examination constitutes a judicial admission and as such defeats his cause of action against defendant Farquhar, personally. That answer was: "A But I was loaning it to the company, not to Mr. Farquhar." Although the proceeds of the loan went directly to the corporation, defendant Farquhar could still be personally liable as a cosigner of the note. The answer must be considered in the illumination that is provided by plaintiff's other answers on this same subject matter. The question *1337 and answer immediately preceding the alleged binding judicial admission was:
On cross-examination, plaintiff again gives some comfort to defendant's contention by testifying:
Plaintiff testified on rebuttal and in response to the following questions gave the following answers:
And during cross-examination of his testimony on rebuttal the following occurred:
A Mr. Jerold Billings, an attorney who had handled the legal work in incorporating defendant Oceans West, testified that he advised Farquhar how to execute a note to avoid personal responsibility. Although he testified as an expert that the note in question was a corporate obligation, he did not testify that Farquhar was not also personally liable.
Defendant conceded at time of oral argument that the way in which the note was signed by Farquhar was ambiguous. Because of this ambiguity, the following statutory provisions are relevant to a determination of the issue in the case:
This latter statute was discussed in 43 Or.L.Rev. 146 (1964), as follows:
In Rowley v. Hager, 63 Or. 246, 250, 127 P. 36, 37 (1912), we recognized that the intent of the immediate parties is controlling:
This is in accord with the general rule:
We conclude that the testimony of plaintiff, as noted above, when considered in the light of all his testimony, does not constitute a judicial admission so as to bar his recovery from defendant Farquhar and that there is competent, substantial evidence in the record to support the trial judge's decision.
The judgment of the trial court is affirmed.