Currie-McGraw Co. v. Friedman

100 So. 273, 135 Miss. 701, 1924 Miss. LEXIS 60
CourtMississippi Supreme Court
DecidedMay 26, 1924
DocketNo. 24080
StatusPublished
Cited by3 cases

This text of 100 So. 273 (Currie-McGraw Co. v. Friedman) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Currie-McGraw Co. v. Friedman, 100 So. 273, 135 Miss. 701, 1924 Miss. LEXIS 60 (Mich. 1924).

Opinion

Sykes, P. J.,

delivered the opinion of the court.

The appellant, plaintiff in the circuit court, brought suit against the defendants, a copartnership, for one thousand five hundred dollars with interest, based upon a check executed by these defendants payable to one P. E. Kramer or his order, and by Kramer properly made payable to appellant. The appellant accepted the check in good faith for value received. The declaration alleges the presentment of the check in due course for payment and the refusal of the bank to honor same at the instance and request of the defendants. The check is dated April 1, 1922. To this declaration there was a plea of the general [710]*710issue and several special pleas. These special pleas were demurred to by the appellant, the demurrers were overruled, the appellant declined to reply thereto, and judgment final was entered in favor of the appellees. From which judgment this appeal is prosecuted.

It becomes necessary to consider the sufficiency of these pleas. The first special plea demurred to alleges, in substance, that the check sued on was executed because of a contract which was made on Sunday between Kramer, the payee in the check, and the defendants; that the check itself was made and delivered on Sunday; and for this reason both the contract and check are void. Another special plea alleges that the cheek was delivered to the payee, Kramer, to be held in trust by him until Kramer had complied with a certain agreement, and that in disregard of this trust Kramer transferred the check to the plaintiff; and nothing was ever paid to the defendants by Kramer for the check. Another special plea in substance alleges the same facts. None of the above pleas deny that the plaintiff (appellant) was a holder in good faith for value. Another special plea alleges that plaintiff was not a holder in due course, because the check was postdated by a matter of six days when delivered by defendants to Kramer, and that the plaintiff received the check two days before its maturity; and that under federal law postdated checks are required to be stamped and canceled; that this cheek was not stamped and canceled and this failure put the plaintiff on notice of the defenses of defendant to the check which are stated in the above pleas. Another special plea merely alleges the fact that the check was postdated, received by plaintiff two days before its maturity date, and therefore plaintiff was put on notice of the defenses of defendant to this check.

From the contents of these pleas, there are two questions presented for decision:

(1) Is a check which bears a legal date, issued on Sunday, in pursuance of a business transaction and [711]*711agreement made on Sunday in violation of our Sunday law, void in the hands of a holder in due course?

(2) Is a postdated check transferred to a holder before the due date, which does not contain proper revenue stamps duly canceled, subject to the defenses existing between the payer and payee ?

Section 1102, Hemingway’s Code (section 1366, Code 1906), makes it a misdemeanor to do certain work on Sunday. Under this law this court has held that notes executed on a secular day in compliance with contracts made on Sunday are void. Kountz v. Price, 40 Miss. 341. Likewise it is held that a promissory note executed on Sunday to secure payment of a balance found due is void. Miller v. Lynch, 38 Miss. 344.

We have examined all the decisions of this court which have been called to our attention, and which we have been able to find, dealing with this question. These cases are all between the parties who made the contract and who had knowledge that it was made on Sunday; in short, tbey were suits between parties who were in pari delicto. The rights of innocent holders for value were not there discussed. The case which is perhaps nearer in point than any of these cases is that of Duggan v. Champlin, 75 Miss. 441, 23 So. 179. In that case the court used this language:

“Her signature on Sunday is a void act against one with knowledge of that fact, but the delivery of the deed on a secular day to a grantee not cognizant of the fact that it was signed on Sunday, is valid as to the wife and all persons claiming under her.”

In the case of Elkin Henson Grain Co. v. White, 98 So. 531, this court held a check void in the bands of an innocent purchaser when given in payment for intoxicating liquor. Headnote 3 in that case is as follows:

“The general rule is that illegality of consideration is no defense to an instrument in the bands of a bolder in due course, but to this rule there is the well-established exception that when a statute, expressly or by necessary [712]*712implication, declares the instrument absolutely void, it ' acquires no validity by its transfer to an innocent holder for value, and no recovery can be enforced thereon.”

Section 1102, Hemingway’s Code, makes it a misdemeanor to do certain kinds 'of labor or work on Sunday. It does not expressly make the giving of any instrument on that day void. In the Elkin case, supra, the statute expressly made void the check. We are not called upon in this case to decide whether this Sunday or Sabbath law by necessary implication would make void, an instrument dated that day.

In the case at bar the check is given a legal daté, namely, April 1st. It is in the hands of a holder in due course without notice of the fact that it was issued on Sunday. This holder is an innocent purchaser for value without notice. To permit this defense would be to allow these defendants to take advantage of their own wrong, to profit by the fact that they had violated the Sunday law; while, on the other hand the plaintiff has violated no law and had no knowledge of its violation by the defendants. To permit this defense would be to allow the party who alone has been guilty- of a breach of the law to set up his illegal act as a defense to a suit by an innocent party. This court will not entertain such a defense.

The court of appeals of Alabama, in passing upon a similar question says:

‘ ‘ The great weight of authorities seem to hold that one who gives to an instrument a legal date, thereby authorizing innocent parties to deal with it as such, cannot be heard to deny the legality of date in a suit against him by an innocent holder, who came into possession as a bona-fide purchaser for value, without notice. It would seem that this rule, as applicable to commercial paper, is essentially just, and based on sound reason.” Moseley v. Bank, 3 Ala. App. 614, 57 So. 91; Gordon v. Levine, 197 Mass. 263, 83 N. E. 861, 15 L. R. A. (N. S.) 243, [713]*713125 Am. St. Rep. 361; Cranson v. Goss, 107 Mass. 439, 9 Am. Rep. 45.

In the case of Knox v. Clifford, 38 Wis. 651, 20 Am. Rep. 28, the rule is thus well stated:

“Where a party makes and puts in circulation a negotiable note purporting to be made and bearing date on some secular day, he is estopped, as against an innocent holder, from showing that it was actually executed and delivered on Sunday. We cannot well conceive of a stronger case for the application of the doctrine of estoppel than such a case presents.”

Another case in point is Johns v. Bailey, 45 Iowa, 241.

In the case of Love v. Wells, 25 Ind. 503, 87 Am. Dec.

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Bluebook (online)
100 So. 273, 135 Miss. 701, 1924 Miss. LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/currie-mcgraw-co-v-friedman-miss-1924.