Conner

This is an appeal from a judgment in favor of the defendants which was entered upon the rendering of a verdict in an action based upon a promissory note. The plaintiffs sued for $37,383. The answer denied defendants’ liability on the ground that .the note was procured by means of fraud. A cross-complaint was filed demanding $85,000 damages as a result of the fraud. A verdict was rendered against the plaintiffs and in favor of the defendants on their cross-complaint for the sum of $38,000. Judgment was entered accordingly. Upon motion for a new trial the court required the defendants to waive their judgment for $38,000 as a condition to the denial of a new trial. The judgment for damages was thereupon waived by the defendants. From that portion of the judgment which decrees- that the plaintiffs take nothing by their action this appeal was perfected.

In the following opinion F. E. Conner will be referred to as the plaintiff and J. W. S. Butler as the defendant.

The Sacramento Lumber Company, a corporation, was located at Sacramento. For ten years the plaintiff was em ployed as general manager of this company at a salary of $300 a month. This business was formerly owned by the Coos…