Shipley Co. v. Rosemead Co.

The complaint in this action is upon a promissory note in the ordinary and usual form, executed by The Rosemead Company, a common law trust, and indorsed by the individual defendants. By way o£ answer the defendants, appellants here, admitting nonpayment, set up as an affirmative defense that prior to the execution of the note a building contract had been entered into by one Jones and the defendants for the erection of certain improvements by Jones on a specified lot; that Jones procured a vault to be built in the. building under construction at a cost of $945, of which sum the defendants paid $230, and that a mechanic’s lien was filed against the premises for the unpaid balance of $715. It is further alleged that the consideration for the note in question was the agreement of the plaintiff to pay off and satisfy said lien and that this agreement was not performed and hence that there was a failure of the consideration for which the note was given. By a supplemental answer they allege the execution of an agreement between plaintiff and themselves subsequent to the filing of their original answer, which, they assert, operated to fully satisfy all claims of plaintiff against them…