Bronson-Kalamazoo Portland Cement Co. v. Second Nat. Bank

31 Ohio C.C. Dec. 331, 20 Ohio C.C. (n.s.) 323, 1912 Ohio Misc. LEXIS 317
CourtSummit Circuit Court
DecidedApril 12, 1912
StatusPublished

This text of 31 Ohio C.C. Dec. 331 (Bronson-Kalamazoo Portland Cement Co. v. Second Nat. Bank) is published on Counsel Stack Legal Research, covering Summit Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bronson-Kalamazoo Portland Cement Co. v. Second Nat. Bank, 31 Ohio C.C. Dec. 331, 20 Ohio C.C. (n.s.) 323, 1912 Ohio Misc. LEXIS 317 (Ohio Super. Ct. 1912).

Opinion

MARVIN, J.

The parties in interest in this proceeding are Harvey Musser, as administrator of the estate of Henry Robinson, deceased, who is the real plaintiff in error, and the Second National Bank of St. Clairsville, which is the defendant in error. In this opinion they will be spoken of as "the administrator” and "the bank” respectively.

The bank brought suit against the Bronson-Kalamazoo Portland Cement Co., a corporation, hereinafter spoken of as "the [332]*332cement company,” John F. Townsend and the administrator on a promisory note, which reads:

“$5,000.00 Akron, Ohio, August 30th, 1906.
“Four months after date we, or either of us, promise to pay to the order of J. F. Townsend & Henry Robinson five thousand & 00/100 dollars payable at the Second National Bank of Akron, Ohio. Value received, with interest at 8 per cent, after maturity.
“No. 271. The Bronson-Kalamazoo Portland Cement Co.,
“Due Dec. 30, 1906. “By V. E. Wheeler, “Secretary.”
(Indorsements.)
“J. F. Townsend,
“Henry Robinson.”
(Credits on said note.)
“March 21, 1909, paid $1,000.
“June 29, 1909, paid $600.”’

The petition properly alleges the appointment and qualification of the administrator; that the note was made by the cement company, which is a corporation, the indorsement of said note by Robinson and Townsend, and that it was delivered to the bank by the endorsers, whereby the bank became the holder of the same in due course; that the note was presented for payment on the day it became due, at the Second National Bank of Akron, where, by its terms, it was to be paid; that payment was refused; that the note was duly protested for non-payment, and due notice thereof given to Townsend and to the administrator; that nothing has been paid on the note except as shown by the indorsements thereon; that on the 7th day of February, 1907, the bank presented the note to the administrator for allowance as a claim against the estate of Robinson, and that the same was then allowed as a valid claim against said estate; that thereafter on or about the 7th day of August, 1909, said administrator rejected said claim.

The suit below was brought on the 8th day of October, 1909. No service was made on Townsend or on the cement company. Proper service was made on the administrator, and he answered admitting his appointment and qualification as administrator, and that on August 7th, 1909, he rejected said note as a claim against the estate, and he avers that he rejected said claim long [333]*333before said last-named date, and that much more than six months before suit was brought he notified the bank that he refused to allow the same as a valid claim against said estate, and so he says, the statute -of limitations bars the bank from maintaining its suit.

He further says that the cement company and its alleged officers and agents attempted to make and deliver the said note without any authority to do so; that the note was and is without any consideration whatever and constitutes no valid obligation against any of the parties sued; that all of said facts were well known to the bank.

He further says that the bank knew, at the time said note became due, that Robinson received no part of any consideration for said note, if any consideration was paid to anybody, and that the bank knew that Robinson was but an accommodation indorser on the same, and that by. reason of its long delay to pursue its claim against the principal debtors on said note, after it had been notified to do so, it can now maintain its suit against him.

He further says that the bank, by accepting payments of interest and a part of the principal on said note after it became due, extended the time of payment of the same, whereby he is released from liability thereon.

To this answer the bank replied, denying all parts thereof except in so far as it admitted the allegations of the petition..

The case was tried to a jury, resulting in a verdict for the bank. The administrator filed a motion for a new trial, which was overruled and judgment entered on- the verdict, to which the administrator duly excepted, and by proper proceedings the case is here for review upon petition in error filed by the administrator.

On behalf of the administrator it is urged that the verdict is contrary to and not supported by the evidence.

The facts disclosed by the evidence are that J. F. Townsend was largely interested in the cement company and that Robinson was also interested in the same company; that this company borrowed money from various parties, one of which was the Second National Bank of St. Clairsville; that there was a custom [334]*334for notes to be prepared made payable to J. F. Townsend and Henry Robinson, as this was; these notes were indorsed by Townsend and Robinson and left in the hands of Lorenzo D. Brown, who was then assistant cashier of the Second National Bank of Akron, and was authorized by both Townsend and Robinson to fill in dates and amounts, have the note signed by the cement company, and use them for borrowing money for the company, or as renewals of notes already outstanding against the company.

The note sued on in this action was one of such notes; it was indorsed by both Townsend and Robinson; it was probably not signed by the secretary of the company until after the indorsement, although the evidence is not clear on that point. Mr. Brown leaves it entirely uncertain, not from any apparent unwillingness on his part, but because counsel on neither side put questions, the answers to which might have made it clear; the note was not dated, nor was the amount probably written in when the indorsements were made. It was, however, subsequently dated, the amount, $5,000, written in, and if it had not already been signed by the secretary of the cement company, it was then signed by him and left with Brown, who at once forwarded it by mail to the bank at St. Clairsville, which bank either remitted a draft for the avails, or used it in renewals of a former note of the same kind. There is a little confusion about this, but in any event, it took the place of a former note of the same parties, whether drafts were sent each way or not. At its maturity it was presented for payment at the proper place by a notary public; payment was refused, the notary protested it for nonpayment, sending notices by mail to Townsend and other indorsers, and sending a notice to the administrator in these words:

Notice of Protest.
Akron, 0., December 31, 1906.
“Take notice that a promissory note for five thousand dollars, dated Akron, Ohio, August 30, 1906, payable Four Months after date, at Second National Bank, Akron, Ohio, signed by the Bronson-Kalamazoo Portland Cement Co., payable to J. F. Townsend and Henry Robinson, endorsed by you, was this day presented for payment, which was refused, and the same was [335]*335therefore this day protested by the undersigned notary public for nonpayment. The holder therefore looks to you for payment thereof together with interest, costs, damages, etc., you being the indorser thereof.

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Bluebook (online)
31 Ohio C.C. Dec. 331, 20 Ohio C.C. (n.s.) 323, 1912 Ohio Misc. LEXIS 317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bronson-kalamazoo-portland-cement-co-v-second-nat-bank-ohcirctsummit-1912.