Digan v. Mandel

79 N.E. 899, 167 Ind. 586, 1907 Ind. LEXIS 13
CourtIndiana Supreme Court
DecidedJanuary 8, 1907
DocketNo. 20,848
StatusPublished
Cited by6 cases

This text of 79 N.E. 899 (Digan v. Mandel) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Digan v. Mandel, 79 N.E. 899, 167 Ind. 586, 1907 Ind. LEXIS 13 (Ind. 1907).

Opinion

Montgomery, C. J.

Appellee brought this action upon a promissory note against Max Jennings and James O’Donnell. No service was obtained upon Jennings, and no appearance by him entered. O’Donnell answered (1) general denial, (2) non est factum, (3) payment, (4) want of consideration, and (5) that the note was signed by O’Donnell as surety, and at the time was intentionally made payable at the City National Bank of Logansport, with the understanding between him and Jennings that appellee’s assignor, John F. Troutman, should also sign the note as cosurety; that the note was never delivered to the payee therein named, nor any consideration given for its execution; that the note came into the hands of Troutman long after the time fixed for its maturity, and without the knowledge or consent of O’Donnell, and by means unknown to him. The affirmative answers were denied. O’Donnell died, and appellant, as his administrator, was substituted as defendant, and thereupon filed answers (1) denial, (2) [589]*589non est factum, and (3) want of consideration. Appellee replied to the third paragraph of answer in denial. A trial by the court resulted in a finding and judgment in favor of appellee for the full amount of principal and interest evidenced by the note, together with attorneys’ fees and costs.

The controlling question for our consideration is presented by the assignment that the court erred in overruling appellant’s motion for a new trial. The complaint alleges in substance the following facts:

On September 17, 1899, Max Jennings was indebted to John E. Troutman in the sum of $251.34, and to evidence and secure the same Jennings as principal and O’Donnell as surety executed to Troutman the following promissory note:

“Logansport, Indiana, September 17, 1899.
Ninety days after date, we, or either of us, promise to pay to the order of the City National Bank of Logansport, at the City National Bank of Logansport, Indiana, $251.34, with interest at the rate of eight per cent per ánnum from date, and attorneys’ fees. The makers and indorsers jointly and severally waive presentment for payment, protest, notice of protest, and nonpayment of this note. Max Jennings,
James O’Donnell.”

By mistake and inadvertence in drafting, said' note was made payable to the City National Bank of Logansport, Indiana, and upon discovery of such mistake, about March 17, 1901, the bank assigned the note to Troutman by the following indorsement thereon: “Pay to the order of John E. Troutman, without any recourse on us. City National Bank.” Troutman indorsed the note to appellee, and the same is due and unpaid. The signature of O’Donnell to the note was shown to be genuine, and the. execution of the indorsements by the City National Bank and John E. Troutman was proved. The note was read in evidence. John Gray testified that he was president of the City Na[590]*590tional Bank, and prior to the bringing of this action, and perhaps three years after the date of the note; he made the indorsement in the name of the bank. The note was then in the possession of Troutman, and before he examined it or made the indorsement his attention was called to the fact that it was by its terms made payable to the bank. After making the indorsement he handed the note back to Troutman and could not recall that he had seen the note at any other time, either before or since. The bank never paid any consideration to any one for the note, and it was never "delivered to or the property of the bank, and was only in the hands of the witness for the purpose of writing the indorsement made at the request of Troutman. The amount recoverable as attorneys’ fees was agreed upon, and this was substantially all the evidence given in the case..

Appellant insists that all the material and necessary allegations of the complaint are not proved, and that the decision of the court is not sustained by the evidence.

1. The note upon its face is not payable to the appellee, but is payable to the order of a third party, and, in an action upon such an instrument, it is incumbent upon the plaintiff to allege facts in the complaint showing his title or right to maintain the action. Carskaddon v. Pine (1900), 154 Ind. 410; Keller v. Williams (1875), 49 Ind. 504; Nelson v. Johnson (1862), 18 Ind. 329; Stowe v. Weir (1860), 15 Ind. 341; Barcus v. Evans (1860), 14 Ind. 381; Montague v. Reineger (1861), 11 Iowa 503.

2. 3. [591]*5914. 5. [590]*590This requirement is met with the averment that, by mistake and inadvertence in drafting, the note was made payable to the bank, instead of Troutman, the payee intended, and by Troutman was indorsed to appellee. Under these averments the City National Bank never acquired any interest in the note, and was not an assignor within the meaning of that term as used in §277 Burns 1901, §276 R. S. 1881, and, even in the absence of the indorsement by it shown in [591]*591the complaint, would not have been a necessary party to the action. Smith v. Walker (1893), 7 Ind. App. 614; Rhyan v. Dunnigan (1881), 76 Ind. 178, 180; Meeker v. Shanks (1887), 112 Ind. 207, 211. The indorsement by the bank passed no right or title in or to the paper not already vested in the holder. The manifest theory of the complaint is that Troutman, through whom appellee derived title, was the real payee intended at the time the note was executed; that he did not acquire his title by indorsement or delivery, but that the note was executed to him directly, and that another name, not a mere trade name of his, but the name of a third party, was written therein as payee by mistake and inadvertence. It is a general rule of pleading that a plaintiff must succeed, if at all, upon the case made by his complaint, and his evidence must prove his case upon the theory pleaded in the complaint or he will fail. Terre Haute, etc., R. Co. v. McCorkle (1895), 140 Ind. 613; Holderman v. Miller (1885), 102 Ind. 356; Leeds v. City of Richmond (1885), 102 Ind. 372.

6. The rule more particularly stated and applied is to the effect that, when an action is brought upon a note or other chose in action, the specific title alleged must be proved as laid, the same as if the action were brought for the recovery of real estate. Indianapolis, etc., R. Co. v. Center Tp. (1895), 143 Ind. 63, 70; Smelser v. Wayne, etc., Turnpike Co. (1882), 82 Ind. 417; Morgan v. Smith, etc., Organ Co. (1880), 73 Ind. 179; Wallace v. Reed (1880), 70 Ind. 263; Jackson Tp. v. Barnes (1876), 55 Ind. 136; Smith v. Walker, supra.

The contested question for decision is whether there is any evidence to sustain the allegation that the instrument' in suit was executed by the makers to John E. Troutman, and, by mistake and inadvertence in drafting, his name was omitted and another inserted as payee. Appellee’s counsel contend that proof of the genuineness of O’Donnell’s signa[592]

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Cite This Page — Counsel Stack

Bluebook (online)
79 N.E. 899, 167 Ind. 586, 1907 Ind. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/digan-v-mandel-ind-1907.