Johnson v. Balloun
Supreme Court of Iowa · 1925-07-01
The case involved a dispute over a promissory note and mortgage originally payable at the First National Bank of Chelsea, Iowa, where the defendant claimed an oral agreement with the plaintiff to change the place of interest payments to the Chelsea State Bank. The plaintiff denied any such agreement and filed suit to foreclose after the 1924 interest installment was tendered only at the new location, invoking an acceleration clause in the mortgage. The trial court ruled for the plaintiff, but the Iowa Supreme Court reversed, holding that the defendant met the burden of proving the agreement through consistent testimony and corroborating circumstances from prior payments. The court concluded that the change in payment location was valid and that the action should abate due to the proper tender.
propertyprocedure
Northern Trust & Savings Bank v. Beach
Supreme Court of Iowa · 1925-06-25 · cited 1×
The case was a replevin action filed by Northern Trust & Savings Bank against Beach to recover possession of an automobile based on a chattel mortgage from Miller, with the bank alleging a $2,000 value and $500 damages. After substituting Hansen as plaintiff via assignment of a related mortgage, the trial court denied amendments to allege the assignment and adjust the car's value to $500, then granted judgment on the pleadings for the defendant against the original bank and its bond. The appellate court reversed and remanded, holding that the code provision prevents abatement of an action due to transfer of interest during pendency, so amendments to show succession of interest and correct the value allegation should have been permitted to allow trial to proceed.
procedureproperty
Mayberry v. Newell
Supreme Court of Iowa · 1925-06-25 · cited 1×
The case involved a dispute between employer Charles E. Newell and employee Mayberry over an oral agreement for commissions on construction contracts in addition to salary, as well as a counterclaim alleging negligence in cost estimates and failure to account for side work performed during employment. The trial court awarded Newell $773.27 in commissions and rejected the counterclaim. On appeal, the court affirmed, finding sufficient evidence supported the existence of the commission agreement and the amount due. Regarding the counterclaim, the court determined that errors in the Walcott elevator estimate constituted negligence but that damages were not proven because the bid remained competitive with other offers, so the employer would not necessarily have secured the contract or additional profits with corrected figures; the side-work claim also failed due to the employer's acquiescence.
labor & employmentbusiness & regulatorytorts & liability
Schultz v. Consolidated Independent School District
Supreme Court of Iowa · 1925-06-25 · cited 10×
The case involved a teacher suing a school district for breach of her employment contract after the board rescinded it without notice or a hearing. The lower court dismissed the claim, ruling that the teacher was required to appeal the board's decision to the county superintendent before filing suit. The Iowa Supreme Court reversed, holding that no appeal to the county superintendent was necessary because the discharge was not based on statutory grounds such as incompetency or misconduct, and the board had acted without jurisdiction or authority under the law.
labor & employmentprocedure
Devore v. Municipal Court of Council Bluffs
Supreme Court of Iowa · 1925-06-25 · cited 1×
In this case, Guy Devore was sued in Pottawattamie County on a promissory note for the purchase of stock powder and filed an answer and counterclaim alleging fraud, misrepresentation, breach of warranty, and resulting damages from harm to his livestock. He sought a change of venue to his home county under a statute permitting transfer when a sworn answer alleges fraud in the inception of a contract. The municipal court denied the application without explanation. The court held that the answer did not sufficiently allege the elements of fraud—such as reliance on false representations known to be false—but instead described a breach of warranty, so the statutory right to venue transfer was not triggered. It therefore concluded that the lower court did not act illegally in denying the change and dismissed the proceeding.
procedure
Bowen v. First National Bank
Supreme Court of Iowa · 1925-06-25 · cited 5×
The case involved a customer who deposited unregistered government bonds with a bank for safekeeping, which were later stolen during a burglary of the bank's safe. The customer sued the bank for the loss, alleging failure to exercise proper care. The court affirmed the judgment in favor of the bank, holding that as a gratuitous bailee, the bank was only required to exercise ordinary care, and the evidence supported that it had done so by storing the bonds in a safe deemed more secure than the available vault. Matters such as alleged representations about insurance and failure to post a watch were deemed immaterial to the standard of care or not prejudicial.
propertytorts & liabilitybusiness & regulatory