Kail v. Bell

129 P. 1135, 88 Kan. 666, 1913 Kan. LEXIS 398
CourtSupreme Court of Kansas
DecidedFebruary 8, 1913
DocketNo. 17,803
StatusPublished
Cited by4 cases

This text of 129 P. 1135 (Kail v. Bell) 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
Kail v. Bell, 129 P. 1135, 88 Kan. 666, 1913 Kan. LEXIS 398 (kan 1913).

Opinion

The opinion of the court was delivered by

Burch, J.:

The plaintiff, Kaill, sold a tract of land to the defendant, Bell, and received in part payment •of the price an order for the purchase of a book described as “Bell’s Louisiana Portfolio” signed by the board of school directors of a parish in Louisiana. The order proved to 'be uncollectible, and Kaill sued Bell to recover the sum of money represented by it. The plaintiff recovered, and the defendant appeals.

The order was one of a number, aggregating $7500, delivered to the plaintiff pursuant to a written contract of sale wherein the defendant guaranteed that the orders were valid and were taken in the regular course of business. The contract provided that the plaintiff should have ten days’ time in which to furnish an abstract of title to the land, and that the defendant should have ten days’ time in which to examine the abstract. In due time the contract was consummated by a delivery of a deed to the land and delivery of the orders referred to. The contract did not specify the particular orders to be supplied, and the first time the plaintiff saw those which he accepted was when they were turned over to him in exchange for his deed. At that time the defendant, in the plaintiff’s presence, placed the following indorsement upon each order, which he signed and then handed to the plaintiff, who blotted the signature:

“For value received, this account is assigned to Henry G. Kaill, without recourse.”

The plaintiff examined the orders, observed the in[668]*668dorsement, and knew the meaning of the words “without recourse,” but nothing was said by either party respecting any change in the terms of the previous contract. The defendant contends that by virtue of the indorsement and its acceptance by the plaintiff a novation was accomplished, and that the defendant is relieved from his guaranty of validity.

There is nothing in the situation or conduct of the parties to indicate that an abrogation of the express contract of guaranty was mutually intended, and the insertion of the words “without recourse” in the instrument passing title does not have that effect. Those words have no precise legal signification outside the law of commercial paper, and unless it is manifest that they were intended to express a different meaning they must be given their ordinary effect, which is that the indorser assumes no contractual liability by virtue of the indorsement itself. Even in the case of commercial paper indorsed without recourse the vendor impliedly warrants that the instrument is ¿ valid obligation' of the kind it purports to be. The following authorities are sufficient to furnish a key to the law on the subject. (Challiss v. McCrum, 22 Kan. 157; Drennan v. Bunn, 124 Ill. 175, 16 N. E. 100; Hannum v. Richardson, 48 Vt. 508; Meyer v. Richards, 163 U. S. 385; Gompertz v. Bartlett, 2 Ell. & Bl. 849; Gurney v. Womersley, 4 Ell. & Bl. 132; 7 Cyc. 831; 2 Randolph on Commercial Paper, §§ 720, 756.)

In the case of Hannum v. Richardson, supra, a note given for intoxicating liquor sold contrary to law,, and consequently void at its inception, was transferred by indorsement without recourse. The court said:

“By indorsing the note ‘without recourse’ the defendant refused to assume the responsibility and liability which the law attaches to an unqualified indorsement, so that in respect to such liability it may perhaps be regarded as standing without an indorsement. If it be so regarded, then in what position do these [669]*669parties stand in respect to the transaction? The principle is well settled, that where personal property of any kind is sold there is on the part of the seller an implied warranty that he has title to the property, and that it is what it purports to be, and is that for which it was sold, as understood by the parties at the time. . . . In this case the note in question was given for intoxicating liquor sold in this state in violation of law, and therefore was void at its inception; in short, it was not a note, it was not what it imported to be, or what it was sold and purchased for; it is of no more effect than if it had been a blank piece of paper for which the plaintiff had paid his fifty. dollars. In this view of the case we think the defendant is liable upon a warranty that the thing sold was. a valid note of hand.” (pp. 510, 511.)

In this case the defendant contracted to deliver to the'plaintiff school orders for school supplies, and if the instruments were not legal orders they failed to answer the description contained in the contract precisely as the instrument in Hcmnum v. Richardson failed to possess the character imported by its face. Such being the law, the greatest effect the restrictive words of the assignment could have would be to substitute an implied for an express warranty of validity, which of course was not a matter in the mind of either party.

The defendant argues that the law implies knowledge on the part of the plaintiff of any legal restrictions on the power of the school board to issue the orders, and consequently that the plaintiff took them for what they were worth. The contract shows, however, that the parties did not act with reference to such knowledge or deal upon the basis of a delivery of school orders, good or bad, in payment for the plaintiff’s land.

There remains to be considered the question whether or not the order is invalid for want of power on the part of the board of school directors to purchase the portfolio.

The plaintiff brought suit on the particular order [670]*670in question in the proper court of the state of Louisiana and was defeated. Under the law of this state the judgment is prima facie evidence only in favor of the plaintiff, and the guarantor had the right to contest the claim that the order is invalid when sued in this state for the amount of money which it represents. In a suit in the circuit court of the United States for the district of Louisiana upon another order given by a different school board the plaintiff recovered. This judgment is not, of course, res judicata, and neither judgment is conclusive upon the courts of this state as an interpretation of the law of the state of Louisiana.

The statutory law of Louisiana governing the subject was agreed to. It provides for a state board of education which is given power to prepare rules, bylaws and regulations for the government of the public schools of the state, prescribe the studies which Shall be taught therein, enforce strict uniformity of textbooks, and adopt a list thereof. Parish boards have power to procure school sites, erect school buildings, contract for outbuildings and enclosures, make repairs, and provide the necessary furniture, equipment and apparatus. No other provision of the laws of Louisiana either gives or denies power respecting the matter in controversy.

It is agreed that the article for which the order was given consisted of a large number of sheets, bound in book form, containing maps, historic data, descriptive, scientific and other educational matter,-printed in words and figures, with indices and directions, and covered with a heavy, flexible binding. Included in the price for the article and sold with it was a wooden frame or rack for its support, mounted on an iron or steel tripod with legs and feet.

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Cite This Page — Counsel Stack

Bluebook (online)
129 P. 1135, 88 Kan. 666, 1913 Kan. LEXIS 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kail-v-bell-kan-1913.