Farmers & Merchants Nat. Bank of Hatton v. Lee
Decision Date | 12 May 1983 |
Docket Number | No. 10361,10361 |
Parties | 36 UCC Rep.Serv. 218 FARMERS & MERCHANTS NATIONAL BANK OF HATTON, North Dakota, Plaintiff and Appellee, v. Richard G. LEE, Defendant and Appellant. Civ. |
Court | North Dakota Supreme Court |
Damon E. Anderson, Grand Forks, for defendant and appellant.
John S. Foster (argued), of Vaaler, Gillig, Warcup, Woutat, Zimney & Foster, Grand Forks, for plaintiff and appellee.
This is an appeal by Richard G. Lee from a judgment granting the motion for summary judgment of the Farmers & Merchants National Bank of Hatton, North Dakota [Bank]. We affirm.
In June 1981 Lee executed and delivered a promissory note due November 1, 1981, to the Bank. The note was a consolidation of previous loans made to Village Homes, Inc. which were in default. The note was for the principal amount of $85,000.00 with annual interest at seventeen percent. The note was signed by Lee personally. "Village Homes, Inc." does not appear anywhere on the note.
The Bank began an action to recover the moneys owing on the promissory note after it became due. The trial court granted the Bank's motion for summary judgment in a memorandum opinion and ordered Lee to pay the Bank the principal sum of $85,000.00, accrued interest of $15,360.56, interest from July 12, 1982, at the rate of seventeen percent per annum ($39.59 per day), and costs of $42.75.
Summary judgment is a procedural device used for the prompt disposition of a controversy without a trial when Rule 56 of the North Dakota Rules of Civil Procedure is complied with. See Pioneer Credit Co. v. Medalen, 326 N.W.2d 717, 718-719 (N.D.1982). We noted in Titus v. Titus, 154 N.W.2d 391, 396 (N.D.1967):
Section (e) of Rule 56, N.D.R.Civ.P., provides, in pertinent part:
See Herman v. Magnuson, 277 N.W.2d 445, 454-455 (N.D.1979). On an appeal from a summary judgment, we view the evidence in the light most favorable to the party against whom the motion was granted.
In the instant case, Lee contends that two genuine issues of material fact exist which prohibit the granting of summary judgment. Lee's first contention is that he is not personally liable for the note and that the issue of his liability involves a question of material fact. Because Lee did not specifically deny the authenticity of his signature on the promissory note in the pleadings, his signature is admitted as genuine. See Sec. 41-03-37 of the North Dakota Century Code (U.C.C. 3-307); Wildfang Miller Motors, Inc. v. Rath, 198 N.W.2d 210, 211 (N.D.1972).
In Ristvedt v. Nettum, 311 N.W.2d 574, 578 (N.D.1981), we stated:
"... courts have long held that the signature of a representative without any indication that he was signing in a representative capacity leaves him personally liable." 2
See generally Annot., 97 A.L.R.3d 798 (1980) [ ].
There is no indication on the note in issue that Lee signed the note in a representative capacity. Therefore, under North Dakota law Lee is liable for the note. The trial court correctly found that there was no genuine issue of material fact regarding Lee's liability that would preclude summary judgment.
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