Citizens' Bank of Union v. Hilkemeyer

• Decision Date: 09 January 1929
• Docket Number: No. 20438.,20438.
• Citation: 12 S.W.2d 516
• Parties: CITIZENS' BANK OF UNION v. HILKEMEYER et al.
• Court: Missouri Court of Appeals

12 S.W.2d 516

CITIZENS' BANK OF UNION v. HILKEMEYER et al.

No. 20438.

St. Louis Court of Appeals. Missouri.

January 9, 1929.

Rehearing Denied January 22, 1929.

Appeal from Circuit Court, Franklin County; R. A. Breuer, Judge.

"Not to be officially published."

Action by the Citizens' Bank of Union against Ida A. Hilkemeyer and another. Judgment for plaintiff, and defendant Hilkemeyer appeals. Affirmed.

Kane, Blackinton & Reid, of St. Louis, and David Breid, of Union, for appellant.

Frank W. Jenny, of Union, and Virginia J. Booth and James Booth, both of Pacific, for respondent.

SUTTON, C.

This is an action on a promissory note. It is alleged in the petition that on January 14, 1914, L. G. Hilkemeyer and Ida A. Hilkemeyer made, executed, and delivered to defendant Wm. Vondera their promissory note, whereby they promised for value received to pay to the order of said Wm. Vondera one day after the date thereof the sum of $1,000, with interest from date at the rate of 5 per cent. per annum; that the interest on said note has been fully paid up until January 14, 1926, but that no part of the principal has ever been paid; and judgment is prayed for the sum of $1,000, with interest at 5 per cent. per annum from January 14, 1926.

The answer of defendant Ida A. Hilkemeyer admits the execution of the note sued on, and alleges that the note was signed by her without receiving any consideration from any of the parties thereto, and that it was signed by her for the accommodation of the other parties thereto; that the plaintiff received and became the holder of said note after the maturity thereof; that none of the parties to said note received any consideration for its execution; that said note was transferred to plaintiff by defendant Vondera as collateral security for a past indebtedness of said Vondera; that afterwards plaintiff for a valuable consideration agreed with L. G. Hilkemeyer to extend the time of payment of said note from year to year for a great many years, without the knowledge or consent of defendant Ida A. Hilkemeyer; that by reason of said acts said defendant is discharged from liability on said note. Defendant Vondera did not answer.

The trial, with a jury, resulted in a directed verdict for plaintiff. Judgment was given accordingly, and defendant Ida A. Hilkemeyer appeals.

There is no substantial dispute about the facts in the case. On January 14, 1914, L. G. Hilkemeyer borrowed from defendant Wm. Vondera $1,000, and a note was executed to Vondera for this amount, payable one day after date, with interest from date at the rate of 5 per cent. per annum. The note was signed by L. G. Hilkemeyer and appellant Ida A. Hilkemeyer. Appellant received no consideration for signing the note. She signed it merely as an accommodation maker or surety. In 1917, Vondera borrowed from the plaintiff $2,000, executed to plaintiff his note therefor, and transferred to plaintiff, as collateral security for the payment of said note, the note sued on. No part of the principal of the note sued on has ever been paid. The interest thereon was paid annually by L. G. Hilkemeyer as it came due down to and including January 14, 1926. The note executed to plaintiff for $2,000 was reduced by payments to $1,250. In 1920, an arrangement was made between Vondera and L. G. Hilkemeyer for the payment of 6 per cent. interest on the note sued on.

Concerning this arrangement, Vondera, produced by plaintiff, testified: "I told Hilkemeyer that I had to pay the bank six per cent, and I wanted him to pay me six per cent on his note. He promised me to pay six per cent, and he gave me a check for $60 in payment of the interest every year, and I made interest payments to the bank as I got the checks from him. I paid six per cent interest, and that is the reason I wanted six per cent from Hilkemeyer. The bank had my note for six per cent. I asked Hilkemeyer if it was suitable to pay his note, and he said it would not suit exactly, if we could make other arrangements. I did not ask Hilkemeyer after that to pay his note. Everything went along. He gave me a check each year for $60, and I brought that to the bank, and we were satisfied all the way round. I paid my dues, and the bank was satisfied, and gave me more time on my note, and I gave Hilkemeyer more time on his note. When I got...