James R. Yost v. Alberta G. Morrow

Mrs. Alberta Morrow, appellee herein, is a co-maker of a promissory note signed by her and one C. A. Butcher on October 17, 1955, at Nyssa, Oregon. The note recited that “for value received” Mrs. Morrow and Butcher would pay to the order of James R. Yost, appellant herein, $7,300.00, with six per cent interest thereon, on or before April 15, 1956, at a named bank in Nyssa, Oregon.

This note was secured by a chattel mortgage on certain cattle feed owned by Butcher. The feed was kept on a ranch owned by Mrs. Morrow, but operated and managed by Butcher. The mortgage was also signed by both Butcher and Mrs. Morrow and was recorded in the office of the County Recorder of Canyon County, Idaho.

Suit was brought on the note in the District Court for the District of Idaho, Southern Division. As Appellant is a resident of Oregon and C. A. Butcher and Mrs. Morrow are residents of Idaho, the District Court had jurisdiction by reason of the diversity of citizenship of the parties. Jurisdiction of this court rests on 28 U.S.C. § 1291 .

As seen above, the note itself recited consideration. Furthermore, paragraph II of Yost’s complaint alleged that the subject note was executed by Butcher and…