This is an appeal from a money judgment in an action on a promissory note. The complaint eon
Whether or not a general denial of the negative allegations of nonpayment contained in a complaint such as this sufficiently presents an issue of payment is a matter of considerable confusion in the case law of this and other states. An exhaustive annotation upon the subject is to be found in 100 American Law Reports, beginning at page 264, the annotation following the report of Hughes v. Wachter, 61 N.D. 513 [238 N.W. 776, 100 A.L.R. 255]. We think it unnecessary to discuss the subject here because even if we should rule that evidence of payment could not be introduced under the pleadings as here made up we would yet be compelled to reverse the judgment appealed from. We hold it was an abuse of discretion on the part of the trial court to refuse, under the circumstances of this case, the request of the defendant for leave to amend his answer in order to present properly the issue of payment. It is apparent from the pleadings filed and from the proceedings in the trial court shown by the settled statement on appeal that plaintiff and his counsel were aware that defendant relied upon the defense of payment and that defendant had at least made an effort, even if an ill-advised one, to raise the issue by denying the plaintiff’s allegations of nonpayment. Indeed, respondent in his brief
Defendant had pleaded by way of cross-complaint a cause of action in slander, but had not, upon filing the same, filed a bond which section 830 of the Code of Civil Procedure requires shall be filed “before issuing a summons in an action for libel or slander.”
This case was tried March 3, 1955, and apparently the Supreme Court decision in Kennaley v. Superior Court, 43 Cal.2d 512 [275 P.2d 1], handed down in October, 1954, and holding that the code section was not applicable to a cross-complaint, was not drawn to the attention of the court. At the trial plaintiff moved to dismiss the slander count for failure to file the bond and the court granted the motion. It is here conceded that this was error under the ruling in Kennaley v. Superior Court.
The judgment appealed from is reversed with instructions to the trial court to permit defendant to amend his answer to allege payment of the promissory note sued on and further to set aside the court’s order dismissing the cross-complaint for failure to file a bond for costs.
Peek, J., and Schottky, J., concurred.
