M. L. Joseph v. Eugene Darrar

This action was instituted by M. L. Joseph, the plaintiff (respondent), against Eugene Darrar, the defendant (appellant),
to recover on three accounts assigned to the plaintiff. Defendant denied the allegations of plaintiff's complaint and also
interposed the affirmative defenses of res judicata and the statute of limitations. The trial court found against the plaintiff
on two of the assigned accounts, but entered judgment in favor of plaintiff on an account assigned to him by Siler Equipment
Sales, Inc. The trial court also found against the defendant on both of his affirmative defenses and this appeal was taken
from that judgment. On appeal the issues before this court deal with the defendant's two affirmative defenses. The facts relevant
to the controversy are as follows. In April 1963 Siler Equipment Sales, Inc., sold certain mill equipment and machinery to the defendant-appellant, Eugene Darrar,
on open account, for an agreed sale price of $2,500.00, retaining no security interest in the property. Before making any
payments on the purchase price of this machinery, the defendant sold some of it to a Mr. V. L. Johnson. The facts regarding
the transaction are in dispute. Earl Siler, who does business as Siler Equipment Sales, Inc., testified that Darrar sold the
equipment to Johnson and took Johnson's $900 promissory note, which Darrar then delivered to Siler with instructions to collect
payments on the note and apply them to Darrar's open account for the equipment. Siler also stated that this arrangement was
made at Darrar's suggestion with the understanding that Siler would accept payments from Johnson on behalf of Darrar for credit
to his account.