Commercial Bank v. Ross

1 Del. Cas. 586, 1819 Del. LEXIS 1
CourtDelaware Court of Common Pleas
DecidedMay 10, 1819
StatusPublished

This text of 1 Del. Cas. 586 (Commercial Bank v. Ross) is published on Counsel Stack Legal Research, covering Delaware Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commercial Bank v. Ross, 1 Del. Cas. 586, 1819 Del. LEXIS 1 (Del. Super. Ct. 1819).

Opinion

By the Court.

(Booth, C. J., Warner and Way, Justices.) The principal question is whether the defendant can give evidence of the want or failure of consideration of this note.

The counsel for the defendant have contended that the Statute 3 & 4 Anne, c. 9, does not extend to this state. They appear to admit that if it does there is an end of the question. It is not necessary for us to decide whether that Statute is or is not in force here, but we will observe that any statute like it may be extended by practice and decisions of the courts. The Statute, 11 Geo. II, c. 19, about use and occupation has never been extended by any legislative act, yet it is acted under and is undoubtedly in force. All declarations or promissory notes are in conformity with the Statute, 3 & 4 Anne.

We conceive that our Act is very different from the Pennsylvania Act. Our Act does not authorize the defendant in suit by indorsee to go into evidence of equitable circumstances between him and the payee.

In England in actions by the payee against the maker, the want or failure of consideration may be gone into, but it is other[602]*602wise if the suit be brought by the indorsee, for he takes it on the credit of the maker. If fraud or illegality of consideration were alleged, the question would be different.

We are satisfied that the authorities read by the defendant’s, counsel are by no means repugnant to what we now declare to be the law. It ought to be remembered that the Pennsylvania courts possess an equity jurisdiction.

The defendant cannot show want of consideration. We believe that even our Act of Assembly would not support him in doing so; for instead of operating in favor of trade and commerce as expressed in the preamble, it would destroy them.

Brinckle. We wish to be distinctly understood by the Court.. We have not admitted that, if the Statute, 3 & 4 Anne, has been extended to this state, there is an end of the question. On the contrary, we made it one of our points and contended that if that Statute were in force here, still on proving that the plaintiff had notice of the want of consideration at the time the note was. discounted, we should be entitled to set up the defense; and such we contended is the law in England at this day. We wish the Court to determine this point.

[By the] Court.

This note is drawn “without defalcation,”' negotiable at the Commercial Bank of Delaware and payable at. the said bank in Milford; that puts it on a footing with notes in England under the Statute, 3 & 4 Anne, c. 9. We will permit you. to show collusion between the indorsee and the plaintiff, or actual fraud and notice of that, but not notice of a mere want or failure of consideration.

Defendant’s counsel prayed and had leave to draw up a bill of exceptions: First, because the Court permitted plaintiff’s, counsel to cross-examine defendant’s witnesses before the examination of him in chief was concluded. Second, because the-consideration paid by the plaintiff to Douglass was not sufficiently proved. Third, because the defendant was not permitted to-prove want of consideration between him and payee and notice of that fact to the plaintiff.

The Court and counsel for plaintiff were desirous that the jury should render a verdict and be discharged immediately, but. defendant’s counsel, apprehending that there might be some difficulty about the bill of exceptions, insisted that the jury should be-kept in attendance until the bill should be drawn and sealed by the Court.

We will adjourn to three o’clock in the afternoon. In the meantime the exceptions can be put in form.

[603]*603At the meeting of the Court in the afternoon (Tuesday, the 11th May) a bill of exceptions was tendered to the Court.

This bill states that the defendant offered to prove so and so. It ought not to state the allegations of the party as to what he can prove, but what he has proved. It ought to set forth facts.

Defendant’s counsel. We have stated facts; we have set forth what we have offered to prove, and what the Court has refused to permit us to prove; and if the Court does not think proper to seal our bill, we proffer ourselves ready to go to trial and to make out the defense as we there state it. We certainly will not consent to go into the High Court of Errors and Appeals upon a bill of exceptions stating in the abstract that it was the opinion of the Court that “in a suit brought by indorsee against the maker on a promissory note, the defendant cannot go into evidence of want of consideration between him and payee, though indorsee has notice.” That Court would say to us.we do not sit to decide abstract questions of law — you have not shown how the principle has any relation or connection with your case. The Supreme Court of the United States so said in a similar case and refused to decide the question. Hamilton v. Russel, 1 Cranch 310, Basse v„ Smith, 6 Cranch 233. Besides, we have admitted that in the case of accommodation notes the principle does not apply, and how would it appear to the superior court that this was not an accommodation note.

We cannot seal this bill as it now stands. Perhaps the counsel may be able to agree upon some form that will be acceptable to both parties and to the Court; and the cause can stand over until tomorrow for that purpose.

The next morning, Wednesday, [May] 12th, Mr. Hall informed the Court that the plaintiff was willing to go to trial and would consent that the defendant might give evidence to prove his defense, if he could.

And the trial went on.

The following question arose in the course of the trial. Douglass, the indorser, and one Adams were proved to have been directors at the time when the note was discounted. Defendant’s counsel asked one of the witnesses whether Adams had ever told him that Douglass was present when the note was discounted and gave the directors any and what information respecting the note.

[604]*604Hall. The declarations of Adams are not evidence against the plaintiff; besides Adams has been summoned as a witness by the defendant and is now in court and may be examined.

Defendant’s counsel. Adams was one of the agents of the bank for discounting notes, and his declarations respecting any act of discounting is evidence against his principal. Meade v. McDowell, 5 Binn. 197, 199, 2 Vern. 574, 13 Ves.Jr. 120. Our having summoned Adams and his presence in court are altogether immaterial. If the defendant should succeed in his defense, the directors who discounted the note, and Adams among the rest, would be answerable to the bank for misconduct. It will therefore be the interest of Adams to defeat our defense.

Booth, C. J.

It has been settled in the High Court of Errors and Appeals that a witness is bound to answer a question which may show that he is liable to be charged in a civil action, and that such answer could not be given in evidence in any suit against him.

[Defendant’s counsel.] Adams is a stockholder in the Commercial Bank of Delaware and therefore directly interested in the event of this suit. He gains or loses by the event and could not be compelled to give evidence for the defendant. ([Note.] 1 Morg.Ess.

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Cite This Page — Counsel Stack

Bluebook (online)
1 Del. Cas. 586, 1819 Del. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-bank-v-ross-delctcompl-1819.