Joseph v. First National Bank

17 Kan. 256
CourtSupreme Court of Kansas
DecidedJuly 15, 1876
StatusPublished
Cited by17 cases

This text of 17 Kan. 256 (Joseph v. First National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph v. First National Bank, 17 Kan. 256 (kan 1876).

Opinion

The opinion of the court was delivered by

"Valentine, J.:

This was an action brought by the First National Bank of Eldorado, Kansas, against the maker and indorsers of the following promissory note:

“$1,000. Eldorado, Kansas, March 21st, 1874.
“ Six months after date, for value received, I promise to pay to the order of Waitman F. Joseph; the sum of one thousand dollars, at the First National Bank of Eldorado, in Eldorado, Kansas, with interest from maturity at the rate of 12 per cent, per annum. And I further agree to pay a reasonable attorney-fee if suit shall be instituted to enforce the payment hereof.
“No. 3216. Due Sept. 21st 1874. D. J. Lobdell.”
Upon the back of which note was indorsed the names of “Waitman F. Joseph,” and “Henry Comstock, Jr.”

[258]*258i. indorsement ■ of wank notes. [257]*257Joseph and Comstock answered separately, each denying under oath that he ever indorsed said promissory note; and [258]*258Joseph alleging that so far as he was concerned the indorsement was a forgery. The evidence however^ as brought to this court, seems to show, beyond all doubt, that the . signatures indorsed on said note were and are the true and genuine signatures of the said Joseph and Comstock. The evidence however seems to show that said note was indorsed before it was fully filled up, and while it was partially in blank, but asJ;o how much of it was filled up, and how much of it was in blank, the evidence with regard. thereto is conflicting. Some of the evidence tends to show that the dates, the amount, the maker’s name, and the payee’s name, were all in blank, while other parts of the evidence tend to show that not so much of the note was in blank. The amount at least was probably in blank. Joseph and Comstock indorsed said note at the request of Lobdell, and both Joseph and Corn-stock testify that Lobdell agreed that the amount to be put in the note should not exceed $400. But there was other evidence contradicting this, and showing that the note was to be filled up just as it was in fact filled up. This note was executed and indorsed for the purpose of taking up and paying another note for $1,000 then due, and held by the bank against Lobdelband Joseph and a man by the name of Drake; and there was evidence tending to show that Lobdell, who was the principal debtor, and who procured said signatures, told the indorsers at the time they indorsed said note, that if he got certain money which he expected to get, the amount that would be placed in the new note should'not exceed $400, and in any case the amount should not exceed $1,000. The note was in fact filled so as to make the amount just $1,000. The bank was fully aware that the note was ex-ecu£e¿ an¿ indorsed in blank, but it was not aware until long after it purchased and received the note, and until long after all the blanks were completely filled, that any one claimed or believed that the .blanks were not filled up in exact accordance with the expectations and understanding of the indorsers. The note was taken by the bank in good faith as payment for another note of the same [259]*259amount which the bank held against said Lobdell and S. D. Drake as'makers, and said defendant Joseph as indorser. Now upon the merits of this case we think the plaintiff below should recover. Promissory notes may legally and properly be executed and indorsed in blank. And . knowledge on the part of the payee or holder of the note, that it was so executed and indorsed, will not vitiate the note. All that is necessary in such a case is, that the holder shall be an innocent and bona fide holder of the note for value. He is not bound to know that the blanks were filled up in exact accordance with the expectations or intentions of the maker or indorser. The maker and indorser take the risk, when they make and indorse the note. -.....The note is good in the hands of an innocent purchaser for value, even if it was filled up with an amount greater than that authorized"by the maker or the indorser. (1 Pars. Notes & Bills, Í09 to 113; 1 Daniel on Negotiable Instruments, 111, et seq.) The plaintiff in this case was an innocent and bona fide holder of the note for value. The plaintiff was wholly innocent of any fraud or any wrong that may possibly have been perpetrated on the indorsers. And in consideration for this note the plaintiff gave up and surrendered a valuable security, torwit, another note for the same amount on Drake, and on two of the present defendants, Lobdell and Joseph. This was a sufficient consideration, even if the same should be called a preexisting debt. (1 Parsons on Notes, 219; 1 Daniel on Negotiable Instruments, 145, 146, 620 to 623.) Drake was released, and Lobdell and Joseph got further time, and the note was taken and received in the usual and ordinary course of business, and there was nothing to create the slightest suspicion that the note was not filled up as directed by Joseph and Com-stock. It would now be unjust to the bank to Hold that the note was void; and therefore, upon the merits of the case, we think the bank should recover.

[260]*2602. objections to evidence must be stated. [259]*259But aside from the merits, are there any technical grounds upon which the judgment of the court below should be reversed ? It is claimed that the court below erred in admitting [260]*260in evidence a certain letter of Miller & Taylor. Now this evidence does not appear from the record to have z. , . _ been competent. It was the admissions of two> men, not parties to the record, and not appearing to have any authority from any party to the record to make such admissions.. But still the evidence was immaterial; for everything material which the letter tended to prove had already been incontestibly proved or admitted. But whether the evidence was competent or not, or material or not, the defendants cannot complain of its admission by the court below, for they stated no ground upon which they asked to have it excluded. (Simpson v. Kimberlin, 12 Kas. 587; 3 Estee’s Pl. & Forms, 500; 3 "Wait’s Pr. 204, 205.) If the ground for the objection was,, that Miller & Taylor did not have authority from either» of the defendants for writing said letter, and if such, ground had been suggested to the court below, then other and additional evidence might have been introduced showing that Miller & Taylor did have just such authority. This may not "however have been the real ground upon which said objection was made. The objection, so far as 'the record shows, may have been made on the ground that Miller & .Taylor did not write the letter, or that the statements therein contained were in and of themselves irrelevant or incompetent; or it may have been on some other supposable ground. Miller & Taylor were attorneys for the defendants. It is claimed that the court below erred in excluding evidence as to what was said by Miller & Taylor with reference to the note in question.” There was certainly no error in this.

„„ ... instructions. The first, second and third instructions of the court to the jury were not excepted to, and hence we cannot review them. (Wyandotte v. Noble, 8 Kas. 444, 447; Norton v. Foster, 12 Kas. 45; Wheeler v. Joy, 15 Kas.

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Bluebook (online)
17 Kan. 256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-v-first-national-bank-kan-1876.