Dollar Savings Bank Co. v. Barberton Pottery Co.

5 Ohio N.P. (n.s.) 73, 17 Ohio Dec. 539, 1907 Ohio Misc. LEXIS 144
CourtSummit County Court of Common Pleas
DecidedMarch 14, 1907
StatusPublished

This text of 5 Ohio N.P. (n.s.) 73 (Dollar Savings Bank Co. v. Barberton Pottery Co.) is published on Counsel Stack Legal Research, covering Summit County 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
Dollar Savings Bank Co. v. Barberton Pottery Co., 5 Ohio N.P. (n.s.) 73, 17 Ohio Dec. 539, 1907 Ohio Misc. LEXIS 144 (Ohio Super. Ct. 1907).

Opinion

Wanamaker, J.

- The plaintiff, for its cause of action, says that it is a corporation duly organized under the laws of the state of Ohio, carrying on a general banking business at Akron, Ohio.

That its cause of action is founded upon a promissory note of which the following 'is a copy, with all credits and the indorsements thereon:

“$2,500.00 Barberton, O., May 16, 1904.-

“Two months after date we promise to pay to the order of ourselves, Twenty-five Hundred Dollars, with interest at-per cent, per annum at'American Nat’l Bank. Value received. “No. 728. Due July 15.

“Tixe Barberton Pottery Co.,

“Per Geo. C. Pryor, Sec.”

Said note is indorsed as follows: The Barberton Pottery Co., Geo. C. Pryor, Sec.; Geo. C. Pryor; Chas. M. Karch; C. IT. Schubert; J. E. Whigan; John McNamara; A. W. Blackburn; A. F. Stuhldreher; B. F. Tracy; Geo. Cox.

There are no credits or indorsements on said note other than as above set forth, except that the interest has been paid up to the 16th day of May, 1906.

[74]*74Plaintiff says that it is the holder and owner of said promissory note and that the same was delivered to it for value at the time of its execution, and that prior to said delivery to it the defendants, Geo. C. Pryor, Chas. M. Karch, C. H. Schubert, J. E. Whigan, John McNamara, A. W. Blackburn, A. F. Stuhldreher, B. F. Tracy and Geo. Cox signed said note on the back thereof. Plaintiff further says that the Barberton Pottery Company has been since the execution of said note duly adjudged a bankrupt; and that there is due to the plaintiff from the defendants, the Barberton Pottery Company, Geo. C. Pryor, Charles M. Karch, C. IT. Schubert, J. E. Whigan, John McNamara, A. W. Blackburn, A. F. Stuhldreher, B. F. Tracy and George Cox as makers of said note the sum of twenty-five hundred dollars with interest thereon from the 16th day of May, 1905, which it claims and for which it asks judgment.

The defendants, the Barberton Pottery Company, A. W. Blackburn and George C. Pryor are in default for answer or demurrer; and the remaining defendants, Charles M. Karch, C. E. Schubert, J. E. Whigan, John McNamara, A. F. Stuhldreher, B. F. Tracy and George Cox, for their answer to plaintiff’s petition, say, that they admit that the plaintiff is a banking corporation doing business as such at Akron, Ohio, as alleged in the petition. They admit that the note set out in plaintiff’s petition is a correct copy thereof with the indorsements thereon as in said petition alleged, and that the Barber-ton Pottery Company was duly adjudged a bankrupt on or about July 15th, 1905.

These answering defendants further say by way of their first defense, that they, at the request of said Barberton Pottery Company, and without any consideration moving to them, or any of them, and solely for the accommodation of said company, signed their names upon the back of said note, and thereafter the same was delivered to said plaintiff, all of which facts hereinbefore alleged were well known to the said plaintiff. These answering defendants further say that when the said note became due and payable the same was not presented for payment at the American National Bank as provided in said note, and the said maker, the said Barberton Pottery Company, failed [75]*75and neglected to pay the same, and made default in payment thereof, and the said plaintiff unlawfully, carelessly and negligently failed to notify these answering defendants, or any of them, of such default in the payment of said note.

By way of a second defense they plead a certain renewal note given in lieu of the original note, by reason of which the time of payment of the original note was extended and that in taking and receiving said new note in lieu of said original note set out in the petition, no reservation was made, either expressly or otherwise, of any right of recourse against these answering defendants, or any of them, and that said renewal note was given and taken without the knowledge or consent of these answering defendants, or any of them, by reason of which they should be discharged from any liability to the plaintiff.

By way of a third defense, these answering defendants say that a third note was given in lieu of the former notes heretofore given, whereby the time of payment was extended, and the interest thereon paid by discounting said third note; that by such extension of time and by giving said third note in lieu of said other two notes, without the knowledge or consent of these answering defendants, or without any reservation whatsoever, either express or otherwise, of any right of recourse against them, that they are discharged in law from any further liability to the plaintiff bank.

By way of a fourth defense these answering defendants say that after said third note had become due, and for a good and valuable consideration, the plaintiff bank agreed with said pottery company to extend the time of payment of said third note until four months after May 16, 1905. That on said May 16, 1905, the pottery company paid the bank the interest to date upon said third note, and received the fourth note in lieu of all the other notes, but not making in said fourth note, nor in any manner whatsoever, any reservation, either express or otherwise, of any right of recourse against these answering defendants, or any of them.

These answering defendants, therefore, say, that by extending the time of payment of said indebtedness and by receiving-said last note in lieu of all the others, and without making- any reservation as aforesaid, all without their knowledge and con[76]*76sent, that they have been discharged from any further liability to the plaintiff upon any of said notes.

They further say that no notice of dishonor was ever served on them as to a default in any of said notes; wherefore, they pray for judgment. To these sundry defenses the plaintiff bank has demurred, and that raises the following legal questions:

First. "What is the relation of the parties defendant to the note described in plaintiff’s petition?

Second. What are their resulting liabilities and rights?

It is conceded by the parties to this controversy that the relation of the defendants to the note in question must be determined and fixed by the new negotiable instruments code, which was adopted in Ohio on April 17, 1902, and went into effect January 1, 1903; and that if said code fails to determine the relation of the parties, that then it is fixed by the law merchant as construed and applied by our courts prior to the adoption of this code.

Prior to the adoption of the code a great diversity of adjudications appeared in the different states as to the exact relation’ that an indorser in blank before delivery sustained to a promissory note. In some states such an indorser was held to be a joint maker; in others, a surety; in others, a guarantor; in others, merely an indorser.

In one of the latest cases before the Supreme Court of Ohio, the court recognizes this great variance as to the liability of an indorser as held by the supreme courts of various states in the following language of the court, as it appears on page 606 of Ewan v. The Brooks-Waterfield Co., 55 O. S., 596:

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Burgettstown National Bank v. Nill
63 A. 186 (Supreme Court of Pennsylvania, 1906)
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Bluebook (online)
5 Ohio N.P. (n.s.) 73, 17 Ohio Dec. 539, 1907 Ohio Misc. LEXIS 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dollar-savings-bank-co-v-barberton-pottery-co-ohctcomplsummit-1907.