Industrial Sav. Bank v. Greenwald

158 So. 734, 229 Ala. 529, 1935 Ala. LEXIS 5
CourtSupreme Court of Alabama
DecidedJanuary 17, 1935
Docket6 Div. 622.
StatusPublished
Cited by13 cases

This text of 158 So. 734 (Industrial Sav. Bank v. Greenwald) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Industrial Sav. Bank v. Greenwald, 158 So. 734, 229 Ala. 529, 1935 Ala. LEXIS 5 (Ala. 1935).

Opinion

*533 KNIGHT, Justice.

Suit by indorsee against Max Greenwald, one of the makers of the promissory note sued on. The complaint consists of a single count. In the complaint it is averred that the note sued on, by due indorsement thereon, ‘‘is held by the plaintiff as a holder in due course thereof.” Thus the plaintiff in the first instance has taken upon himself the burden of proving that he acquired the note in due course of business, for value and before maturity.

Having invoked the protection of the law merchant by his initial pleading, and not by replication, any plea interposed by the defendant, to be good, must meet the issue thus presented, or it would be subject to timely demurrer. White et al. v. Central National Bank, 201 Ala. 298, 78 So. 74; Elmore County Bank v. Avant, 189 Ala. 418, 66 So. 509.

The cause is before us on the pleadings, the plaintiff having suffered a nonsuit on account of the adverse rulings of the court in overruling plaintiff’s demurrers to defendant’s special pleas 2, 3, 6, 9, 10, 11, 12, A, and B. These demurrers were assigned separately and severally to each of the special pleas.

The judgment entry recites: “Plaintiff by separate paper this day files demurrers to each of said pleas separately and severally except to plea one which is the general issue, and said demurrers to each of said pleas separately and severally are by the court heard and considered, whereupon, it is ordered and adjudged by the court that said demurrers be and they are hereby overruled.” Then follows non-suit because of such adverse ruling of the court.

It is apparent the nonsuit was caused by the action of the court in overruling the plaintiff’s demurrers, separately assigned, to each of the respondent’s special pleas. In such a case, each ruling of the court on the demurrer, to each special plea, may be assigned as error, and should be considered by this court. Russell v. Garrett, 208 Ala. 92, 93 So. 711; Engle v. Patterson, 167 Ala. 117, 52 So. 397; Berlin Machine Works v. Ewart Lumber Co., 184 Ala. 272, 63 So. 567; Laster v. Blackwell, 128 Ala. 143, 30 So. 663. We are, therefore, required to consider the sufficiency of each of defendant’s- special pleas, as against the demurrers assigned thereto.

Defendant’s plea 2 is in Code form for plea of payment.

It is insisted that this plea, construing it most strongly against the pleader, does not aver that payment Was made to the plaintiff; *534 that, for aught averred to the contrary, the payment set up was made to the payee of the note before the plaintiff acquired it.

Ordinarily, such a plea, being in Code form, is sufficient. We so held in the case of Blanks v. West Point Wholesale Grocery Co., 225 Ala. 74, 142 So. 49.

The precise question seems to have been passed upon by this court at an early date. Chief Justice Brickell, in the case of Barbour & Son v. Washington Fire & Marine Insurance Co., 60 Ala. 433, in speaking for the court, said: “The plea of payment is in the form prescribed by the Code, and must be understood as affirming that a payment of the notes had been made, which was valid and. operative against the plaintiff as indorsee.” In that case, the plaintiff had acquired the note in due course, for value and before maturity.

Of course, if the plaintiff purchased the note under such circumstances as constituted him a holder in due course, the defendant can only show payment to him, plaintiff, to defeat the action. Any payment to the original payee, after plaintiff had acquired the paper-in due course, for value, before maturity, and without notice, would not be regarded as payment of the debt or demand. The court properly overruled plaintiff’s demurrers to plea 2.

Defendant’s plea 3 — set-off—was defective, and subject to the plaintiff’s demurrers.

However, the appellant is mistaken in his insistence that a maker cannot plead set-off, when sued on negotiable paper by the in-dorsee.

Section 10178 was intended to protect holders of commercial paper, negotiated before -maturity, from the-defense of set-off which the original maker had against the original payee. It was never intended by this provision of the Negotiable Instruments Law, that the maker, when sued by a holder in due course, could not set off against such holder a debt or demand duo and owing by such holder to the maker.

The statute, section 10172, authorizes debts, liquidated or unliquidated, demands not sounding in damages merely, subsisting between the. parties at the commencement of the suit to be set off one against the other by the defendant. This provision authorizes the defendant, when sued by the holder of a negotiable note, to set off a debt owing by such holder to him.

The plea, however, was subject to demur-í'ér for failing to state the time when, or the approximate time when, the amounts going to make up the $5,000 were -received by the defendant, or in failing to aver that the dates were unknown to the defendant.

The rule deduced from our recent decisions requires a plea of set-off to observe the same precision of allegation as would be required in stating the same cause of action in an original complaint. J. C. Lysle Milling Co. v. North Ala. Gro. Co., 201 Ala. 222, 77 So. 748; Ex parte Steverson (Robinson v. Steverson), 211 Ala. 597, 100 So. 912 ; Burnett & Bean v. Miller, 205 Ala. 600, 88 So. 871.

The defendant has' attempted, in framing his plea of set-off, to follow the Code form for a count for money had and received. It will be observed, however, that the form given in the Code for a money had and received count requires that the date of the receipt of the money should be stated. Of course, the date may be stated under a videlicet, oían averment may be made that the date was unknown to the pleader.

In the instant plea the averment as to time of the receipt of the money is thus made:- “On to-wit, from the 1st day of February, 1931, and upon various and sundry other dates thereafter.” The rule requires that pleading must be certain to a common intent. It'is said in Jefferson County v. Gulf Refining Co. of La., 202 Ala., 512, 80 So. 798, 800: “The certainty required in declaration, or plea, is such a statement of the facts constituting the cause of action, or ground of defense, as will enable them to be understood by the party, who is to answer them, the jury who are to ascertain their truth, and thq court who is to give judgment. The statute (Code [1907], § 5321) which enjoins brevity as far as consistent with perspicuity, and the presentation of. facts in an intelligible form so that material issue in law or fact can betaken thereon by the adverse party, has not impaired the substance of the requirement stated in the early cases, though it -may be admitted that in some late cases the limit has been reached in permitting the allegation of mere conclusions.” The above quotation seems .to have been taken from Posey v. Hair, 12 Ala. 567.

Had the plea followed the form given in the Code for an action for money had and received, we would have felt constrained to hold it good. But such is not the ease. It was pointed out- in the case of Smythe v. Dothan F. & M. Co., 166 Ala. 253, 52 So.

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Bluebook (online)
158 So. 734, 229 Ala. 529, 1935 Ala. LEXIS 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-sav-bank-v-greenwald-ala-1935.