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Robert G. Price and James L. Price, Appellees,
v.
Jerry L. Mize, Appellant.
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No. 54646.
Supreme Court of Oklahoma.
April 28, 1981.
Rehearing Denied June 8, 1981.
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Payee
brought action against maker seeking to recover on a promissory
note. The District Court, Jefferson County, D. C. Largent, Jr.,
J., entered judgment in favor of payee, and maker appealed. The
Supreme Court, Hodges, J., held that venue for collection of a promissory
note where maker resided in one county, negotiated loan in second
county and executed promissory note for the loan in the third county
was proper in all three counties.
Affirmed.
Appeal
from the District Court, Jefferson County; D. C. Largent, Jr., judge.
Appellant
appeals from the entry of a judgment for recovery on a promissory
note alleging that venue was improper.
AFFIRMED.
James
H. Ivy, Waurika, and Justus Hefley, Anadarko, for appellees.
Morrel,
Herrold, West, Hodgson, Shelton & Striplin, P. A. by Donald
E. Herrold, and George L. de Verges, Tulsa, for appellant.
HODGES,
Justice.
The
question presented is the proper venue for collection of a promissory
note where the maker resides in one county, negotiates a loan in
a second county, and executes a promissory note for the loan in
a third county.
An
action was filed in the District Court of Jefferson County by Robert
G. Price and James L. Price, appellees, to recover on a promissory
note executed by Jerry L. Mize, appellant, in Oklahoma County, Oklahoma.
Mize filed a special appearance, plea to the jurisdiction, and a
motion to quash, asserting improper venue. The hearing revealed
that: 1) Mize was a resident of and was served with summons in Osage
County; 2) the contract for the loan of $75,000.00 at nine percent
interest was initiated, negotiated and consummated in Waurika, Oklahoma,
and was expressly made payable at the Waurika National Bank in Jefferson
County, Oklahoma; 3) the promissory note on which suit was filed
was signed by Mize and delivered to Robert G. Price in Oklahoma
City, Oklahoma County, Oklahoma. The trial court overruled the appellant's
motions and he sought a writ of prohibition before this Court which
was denied in Case No. 53,766. The cause was heard on the merits
December 12, 1979, and a judgment of $98,936.85, plus interest,
was entered against Mize.
Appellant
asserts (FN1) that his right to be sued in the county where he resides
is a valuable and substantial right which is not to be denied upon
a strained or doubtful construction, and that any exception to this
right is to be strictly construed.
It
is conceded by the parties that 12 O.S.Supp.1978 s 142, (FN2) which
provides the proper venue for collection of a note is in any county
in which venue may be properly laid as now provided by law, or in
the county in which the debt was contracted, or in which the note
or other instrument of indebtedness was given, is controlling. Appellant
contends that venue could only lie in Osage County where Mize resides
or in Oklahoma County where the note was executed. Appellees argue
that venue properly lies in three counties: 1) in Jefferson County
where the contract was made, 2) in Oklahoma County where the note
was signed, or 3) in Osage County where the petitioner resides.
We agree with appellees.
A
promissory note is an unconditional written promise, payable to
order or to bearer, signed by the maker, in which the maker agrees
to pay a fixed sum of money on demand or at a definite time. (FN3)
A debt is a sum of money due upon either an express or an implied
contract. (FN4) The promissory note is not a loan or a debt, it
is only the evidence of indebtedness from the maker to the payee.
(FN5)
The
evidence is undisputed that the debt was contracted in Jefferson
County and that the note was executed in Oklahoma County. The conversations,
negotiations and conditions set forth in the note were agreed to
in Waurika, Oklahoma. The contract was made in Jefferson County,
and the note was prepared there. As a matter of convenience to Mize
the formalized agreement was signed in Oklahoma County. The Legislature
obviously contemplated an identical situation when it provided,
in addition to the county where the maker resides, for venue in
the county where the debt was contracted, as well as where the note
or other instrument of indebtedness was given.
AFFIRMED.
All
the Justices concur.
FN1.
Appellant relies on Jones v. Brown, 516 P.2d 546 (Okl.1973); Graham
v. Mid-Continent Coaches, 302 P.2d 777 (Okl.1956).
FN2.
It is provided by 12 O.S.Supp.1978 s 142:
The
venue of civil actions for the collection of an open account, a
statement of account, account stated, written or oral contract relating
to the purchase of goods, wares or merchandise or for labor, or
for the collection of any note or other instrument of indebtedness
shall be, at the option of the plaintiff or plaintiffs, in either
of the following:
(a)
in any county in which venue may be properly laid as now provided
by law; or
(b)
in the county in which the debt was contracted or in which the note
or other instrument of indebtedness was given.
FN3.
See 12A O.S.1971 s 3-104(1), (2); Iowa State Savings Bank v. Wignall,
53 Okl. 641, 157 P. 725 (1916).
FN4.
Security Inv. Co. v. Miller, 189 Or. 246, 218 P.2d 966, 967 (1950).
FN5.
Mortgage Associates, Inc. v. Monona Shores, Inc., 47 Wis.2d 171,
177 N.W.2d 340, 347 (1970); Gregory v. Williams, 106 Kan. 819, 189
P. 932, 933 (1920).
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