Court Opinion

ID: 9545114
Source: CourtListenerOpinion
Date Created: 2023-08-07 17:06:24.466252+00
Date Added: 2024-06-11T15:14:06.293167
License: Public Domain

JACKSON, Vice Chief Justice
(concurring specially).
It seems to me that the decisive question in this case is whether the plaintiff, Davis, was the owner of the note and mortgage upon which he brought suit. Under his testimony in cross examination I am of the view that there is evidence from which a jury might have concluded that he was not the owner of the note and mortgage.
In Davis’ petition he alleged he was the owner of the note and mortgage. Defendant, in answer, filed a verified general denial but did not specifically and affirmatively allege that the plaintiff was not the real party in interest. White v. Wasson, 118 Okl. 29, 246 P. 445; Panther Oil & Gas Co. v. Brown, 170 Okl. 210, 39 P.2d 150. However, the case was tried as though the ownership of the note and mortgage was an issue in the case with the burden of proof falling upon the plaintiff. Since the mortgage had not been recorded plaintiff had the burden of proving that Mrs. Lively bought the property with actual knowledge of the note and mortgage.
Before discussing the evidence I think my views may be better understood if I *858consider “issues” which I do not believe are rightfully involved in this case.
All agree that Mrs. Bearden was the owner of this property. All agree that when she sold this property to Mrs. Gurley that Mrs. Gurley signed a $5,000.00 note and mortgage in favor of Mrs. Bearden. There is rather conclusive testimony that Mrs. Lively saw this note and mortgage while it was in escrow in a Duncan, Oklahoma, bank and it was mentioned as a “vendor’s lien” in the contract of sale between Gurley and Lively. Indeed Mrs. Lively attempted to prove during the trial that she did know of the note and mortgage but that Mrs. Gurley agreed to pay it. She asserts in her brief that she entered into a “new agreement” to buy the property “upon the promise of Gurley to pay Bearden”.
From the foregoing it is clear that if Mrs. Bearden had retained the note and mortgage and brought this action in rem against this property she would have been entitled to judgment. She allegedly assigned this note and mortgage to Davis after maturity and thus not being a holder in due course, 48 O.S.1961, Sec. 122, Davis took the note and mortgage subject to any defenses that would have been available against Mrs. Bearden. Since Mrs. Lively bought the motel with prior knowledge of the note and mortgage held by Mrs. Bear-den she had no defenses against the note and mortgage even though Davis was not a holder in due course. In fact she does not-contend that the note and mortgage were defective, but sought to prove that Mrs. Gurley agreed to pay it. Thus the validity of the note and mortgage is not an issue in this case.
If Davis did in fact buy this note and mortgage and was the sole owner of the note and mortgage he would be entitled to prevail in this case as a matter of law. The fact that Mrs. Gurley agreed with Mrs. Lively, if she did, that Mrs. Gurley would pay the note would not constitute a defense to the foreclosure action whether it was brought by Mrs. Bearden or Mr. Davis because both were admittedly strangers to that transaction. Furthermore, any testimony that Mrs. Gurley agreed with Mrs. Lively that she, Mrs. Gurley, would pay the note is, as to Davis, pure hearsay. Mrs. Gurley was not a party to this law suit and it follows that her agreement with Mrs. Lively, if any, to pay the note was not a proper issue in this case other than as a circumstance to show Mrs. Gurley was the purchaser of the note and mortgage from Mrs. Bearden. It also follows that the question of whether the Gurley-Lively contract of sale was merged in the Gurley-Lively Warranty Deed is immaterial.
This leaves only the question of whether Davis, by uncontradicted evidence, was the owner of the note and mortgage.
In direct testimony Davis testified that he was the owner of the note and mortgage and that no part of it had been paid. He introduced in evidence the note and mortgage and an assignment of the note and mortgage from Mrs. Bearden to himself.
Excerpts are quoted from his cross examination as follows:
“A. Mother and I was making — when I was taking this from mother Mr. Sullivan took care of all that and he-had power to take care of it at the bank.
⅜ ⅜ sj: sj: ⅜ s}c
“Q. Then you yourself did not pay the money yourself; you authorized someone else to do it, is that right?
A. Yes, sir.
“A. * * * The check is down there in the bank that I signed to pay Mrs. Bearden.
“Q. The check is in the bank?
“A. Yes, I didn’t sign it. Mr. Sullivan took care of signature and everything. He has got power of attorney to.
“Q. Didn’t your mother pay this?
“A. No, sir.
“A. This cancelled check is supposed to be in the bank down at Duncan.
*859“Q. And you signed nothing then?
“A. That’s right, sir.
“Q. You didn’t sign a thing. Mr. Sullivan, you say — so he is the one that made, that paid the amount or whatever it was, or he is the one that finally made the transaction and bought the note and mortgage, is that right ?
“A. Yes, sir.
“Q. And you signed nothing for him to get the money:
“A. Yes, sir.
“A. Mr. Sullivan had the power of attorney to do it.
“Q. What does the power of attorney consist of?
“A. On this case it just consists of this business deal between me and mother and Mrs. Bearden.
“Q. Isn’t it a fact that you and your mother went together and paid this note? You borrowed the money and you both signed a note, and borrowed the money? Is that true?
"A. She helped me get the money, but she didn’t sign no note on it, the way I understand it
X‘Q. Now, she helped you get the money down at the bank, and it was in payment of this same note and mortgage that these gentlemen are looking at now, was it?
“A. Yes, sir.
“Q. Were you helping your mother in this case too?
“A. No, sir. The reason I was in it was because of this suit, help her pay that $5,000.”
I realize it is unfair to quote excerpts from a witness’ testimony without quoting his testimony completely. However, it is not the function of the court to weigh the evidence in this case but to determine whether there was any evidence from which a jury could conclude that Mr. Davis was not the owner of the note and mortgage. If there was any evidence that Mr. Davis was not the owner of the note and mortgage then a jury question was presented. Mr. Sullivan, Mrs. Gurley, and bank officials did not testify in connection with the assignment of the $5000.00 note and mortgage to Mr. Davis, and from his testimony, standing alone, a jury might conclude that he was not the owner of the note and mortgage.