First National Bank v. Houtzer

• Decision Date: 29 May 1917
• Docket Number: 15343
• Citation: 96 Ohio St. 404,117 N.E. 383
• Parties: First National Bank Of Van Wert v. Houtzer Et Al.
• Court: Ohio Supreme Court

117 N.E. 383

96 Ohio St. 404

First National Bank Of Van Wert v. Houtzer Et Al.

15343

Supreme Court of Ohio

May 29, 1917

Suretyship contract - Construction of terms - Presumption as to intent of parties - Liability upon dissolution of partnership - Bank credit.

Mr. H L. Conn and Mt Hathaway Kemper, for plaintiff in error. Mr H. C. Glenn, for defendants in error. BY THE COURT.

The whole question in this case turns upon the matter and meaning of two certain suretyship contracts executed by the defendants in error in favor of the plaintiff in error.

The first contract is of the date of October 7, 1896, and the pertinent parts thereof read as follows:

"The condition of the above obligation is such that, whereas, the above named V. H. Houtzer and Son, V. H. Houtzer, W. H Houtzer is now indebted to said Bank and wishes hereafter to use his credit and create other indebtedness to said Bank by way of renewals and new obligations and said Adaline Houtzer and Lodema Houtzer intends to and does hereby become surety for said V. H. Houtzer & Son, V. H. Houtzer, W. H. Houtzer and this is to give V. H. Houtzer & Son,, V. H. Houtzer, W H. Houtzer credit at said bank to the extent of Fifteen Hundred Dollars. Now if the said V. H. Houtzer & Son, V. H. Houtzer, W. H. Houtzer shall pay to said The First National Bank of Van Wert, Ohio, all and any indebtedness and obligations he or either or any of them [italicized words interlined in pen and ink] may owe to said Bank, on notes, now owing, or hereafter given, drafts, checks, accounts," etc., "and all renewals of any of them and every other indebtedness he or either or any of them [italicized words interlined in pen and ink] may owe to said Bank in any form or character said indebtedness may assume," etc.

This contract is signed V. H. Houtzer & Son, V. H. Houtzer, Adaline Houtzer, W. H. Houtzer, Mrs. Lodema Houtzer, and witnessed by several signatures.

The second suretyship contract is of the date of June 22, 1904, and of similar import, signed by the same parties, and given to the same bank.

The pertinent part thereof is as follows:

"The condition of the above obligation is such that, whereas, the above named V. H. Houtzer & Son, V. H. Houtzer and W. H. Houtzer, is now indebted to said Bank and wishes hereafter to use his, their and its [italicized words interlined in pen and ink] credit and create other indebtedness to said Bank by way of renewals and new obligations and said Adaline Houtzer and Lodema Houtzer intends to and does hereby become Surety for said V. H. Houtzer & Son, V. H. Houtzer and W. H. Houtzer, and this is to give V. H. Houtzer & Son, V. H. Houtzer, W. H. Houtzer credit at said bank to the extent of One Thousand Dollars. Now if the said V. H. Houtzer & Son, V. H. Houtzer, W. H. Houtzer shall pay to said The First National Bank of Van Wert, Ohio, all and any indebtedness and obligations he, they and it [italicized words interlined in pen and ink] may owe to said Bank, on notes, now owing, or hereafter given," etc., "and all renewals of any of them and every other indebtedness he, they or it [italicized words interlined in pen and ink] may owe to said Bank in any form or character said indebtedness may assume and in any relation that he may be liable thereon, then this obligation shall be void."

Mortgages were executed to secure the full satisfaction and execution of said suretyship contracts and were signed by the same parties.

The world's business today is done by contract and most of those contracts take the form either of some formal writing or informal memorandum.

When the written contract appears on its face to be full and complete and to bear the signatures of all the parties to said contract, the terms and provisions, as written in the bond, must control the rights and obligations of all part...