Opinion ID: 1411203
Heading Depth: 1
Heading Rank: 4

Heading: negotiations for further advances

Text: Thereafter the bank declined to make any further advances to defendant, and sometime during September or October certain negotiations took place at the Idaho Bank and Trust Company office in Blackfoot between Rodgers, Schwendiman, H.B. Fitzpatrick, vice-president and manager of the Blackfoot branch, and Frank Fullmer, vice-president and manager of Simplot Eastern Idaho Produce, Inc. (hereinafter referred to as Simplot Eastern). (a) Rodgers' testimony indicates that Fullmer agreed to advance him a certain sum of money in order that the potatoes might be harvested. As part of the arrangement Simplot Eastern was to reimburse itself for the advances out of the proceeds from the sale of the crop. (b) Over appellant's objections (hearsay), Fitzpatrick was permitted to testify to the effect that Simplot Eastern (through Fullmer) agreed to purchase the potatoes and advance funds to Rodgers and Schwendiman so that the crop could be harvested. Exhibits 2, 3 and 4 are checks by Simplot Eastern totalling $7,000 issued in favor of Rodgers and the Idaho Bank and Trust Co. during October, endorsed by both Rodgers and Fitzpatrick and deposited to Rodgers' checking account. These advances were endorsed by the Bank because of the mortgage it had on the potatoes. Fitzpatrick further testified that these checks were deposited to Rodgers' checking account to pay the labor for harvesting the potatoes and were not applied to the mortgage indebtedness of $5,400 plus interest existing at this time. (c) Over similar objections, Fullmer testified that at this conversation Schwendiman asked him to handle the entire crop in return for the advances and that the potatoes would be his (Simplot Eastern's) if he would make the advances. He further testified that at this time Simplot Eastern agreed to purchase all the potatoes even though the harvest had not yet begun, with the price to be ascertained as the potatoes were sold. Thus, although the price was ascertained only as the potatoes were run, they were purchased in the fall and commenced to be run at this time. As part of this agreement, Rodgers and Schwendiman were to pay storage costs as was the custom for this type of service. These advances were made expressly for the purpose of harvesting the crop and were to be paid back to Simplot Eastern from the proceeds of future sales. These negotiations were entirely oral, with no written contract made and no money paid at that time. A fourth check in the amount of $1,500 was issued by Simplot Eastern to Schwendiman which in turn Schwendiman signed over to Rodgers as a loan.