Kniss v. Holbrook

44 N.E. 563, 16 Ind. App. 229, 1896 Ind. App. LEXIS 358
CourtIndiana Court of Appeals
DecidedJune 17, 1896
DocketNo. 1,623
StatusPublished
Cited by5 cases

This text of 44 N.E. 563 (Kniss v. Holbrook) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kniss v. Holbrook, 44 N.E. 563, 16 Ind. App. 229, 1896 Ind. App. LEXIS 358 (Ind. Ct. App. 1896).

Opinions

Gavin, J.

This is an action brought by appellees against appellant upon a promissory note executed to one Brainard, payable to him or bearer at a bank in this State, which was duly assigned to appellees before maturity. Appellant filed an answer of six paragraphs. The third paragraph avers: That the consideration of the note vas the sale and transfer to appellant and another of a certain patent right and that there was no clause or words in said note stating that the same was given for a patent right “by reason of which failure and omission said note was and is invalid and void.”

The 4th paragraph -was identical in language with this save that.it contained the added averment that appellees had at the time of their purchase of the note full knowdedge of the facts above set out.

A demurrer was sustained to the 3d paragraph and overruled to the 4th.

Appellees replied by general denial and estoppel, arising from their having made the purchase of the note and paid its face therefor at appellant’s request upon the faith of appellant’s statement that it was valid and that he would pay it. Upon trial there was a general verdict in appellees’ favor.

That the facts set forth in the 3d paragraph of answer constituted a good defense to the complaint is not and cannot be here controverted. The statute, section 8131, Burns’ R. S. 1894 (6055, R. S. 1881), requires that such note shall contain the words, “Given for a patent right,” while section 8132, Burns’ R. S. 1894 (6056, R. S. 1881), makes it a criminal offense to take or sell such a note without such clause. If the note does not contain the statement it is unenforceable between the parties, but if commercial paper, it is valid in the hands of an innocent holder for value. New v. Walker, 108 Ind. 365.

[231]*231It was not necessary that the answer allege appellees’ knowledge. “Where the consideration of the note is illegal, or it is obtained from the maker by fraud the burden is upon the holder to show that he purchased it in good faith, without police and in the usual course of business.” State Nat. Bank v. Bennett, 8 Ind. App. 679, and the cases there cited.

The court correctly held that appellant could not assert his defense to the note if it was purchased by appellees for a valuable consideration upon the faith of his assurance to them that the note was all right and that he desired appellees to purchase the same and would pay it.

That the maker of the note is ordinarily estopped by such a promise is not disputed. Plummer v. Bank of Mooresville, 90 Ind. 386, and the cases there cited.

Appellant, however, insists that this note was void and that no estoppel can validate a void contract. One serious difficulty with this proposition is that the premise is not well founded. The statute does not in terms declare such contracts void. They are necessarily merely voidable, else they could not be sustained as commercial paper in the hands of innocent holders. The surety obligations of a married woman are by the statute declared void as to her, and therefore the courts declare them incapable of transfer and enforcement as commercial paper. Voreis v. Nussbaum, 131 Ind. 267. Yet, as therein shown, even married women may be estopped to assert their suretyship. Ward v. Berkshire Life Ins. Co., 108 Ind. 301; Rogers v. Union Cent., etc., Ins. Co., 111 Ind. 343; Lane v. Schlemmer, 114 Ind. 296, 5 Am. St. 621.

In New York it is held that an estoppel in pais can be urged to obviate the effect of an act which the statute declares void. Payne v. Burnham, 62 N. Y. 69; Miller v. Zeimer, 111 N. Y. 441.

[232]*232We are not, however, called upon to go so far and decide more than is presented by the facts of this case, and that is, that this note was not void but voidable merely, as is established by the cases above referred to, holding that in the hands of an innocent purchaser it could be enforced as any other commercial paper duly transferred.

Counsel for appellees assert that while the third paragraph of answer was good, yet there was no harmful error in sustaining the demurrer thereto, because the fourth paragraph filed with it and left standing set up the same matters and was in legal effect the same, and because, under this fourth paragraph, all the evidence provable under the third was admissible, and the defense advanced by the third paragraph was available under the fourth. This contention must, in our judgment, be sustained. The principle thus declared was announced by the Supreme Court very early in the history of our State’s jurisprudence and has been many times approved. If it is possible for a long line of decisions of the Supreme Court to settle a question of practice so that it should be regarded as closed and no longer open to dispute, the proposition must be deemed settled that where a demurrer is sustained to an answer, all the averments of which are included in another, under which the facts may be proved and the defense made available, then there is no reversible error in such ruling.

As we have seen, the third paragraph did contain a complete defense to the complaint without the averments of knowledge, while the fourth sets up the same facts with the additional and unnecessary averment of knowledge. Under the latter paragraph every material fact contained in the former was certainly provable because it was specifically averred therein, and [233]*233its proof was absolutely essential to sustain that paragraph. Was not the defense set forth in the third paragraph available under the fourth?

If the appellant was, under the latter paragraph, entitled to prove these facts, as he most undeniably was, then was he not entitled upon making the proof to every benefit or advantage accruing therefrom? According to our holding the latter paragraph was not and could not be any better or stronger than the former. The former set up a complete defense. The other could do no more. It could not, by adding words or additional averments to that which was already a sufficient and complete defense, make of it more than this. The averment of knowledge was wholly unnecessary. Its presence made the pleading no better; its absence would have made it no worse. In legal force and effect the pleadings were the same. It is elementary law that it is not necessary, upon trial, that a party shall prove everything he may have alleged in his pleading. Whenever a defendant proves so many of the facts averred in his answer as will constitute in law the defense to the action he is entitled to recover thereon. '

In this case, although appellant, in the fourth paragraph, alleged knowledge, he was not, in order to maintain the paragraph upon the trial, required to prove it, because the fact was immaterial and mere surplusage. “A second rule, which governs in the production of evidence, is, that it is sufficient, if the substance of the issue be proved.” 1 Greenleaf on Evidence, section 56. In this case, both paragraphs of the answer were good. The third paragraph contained an averment of all the material facts necessary to constitute a defense. The averment of knowledge in the fourth paragraph was matter in excess of what was [234]*234material and was therefore to that extent bad in form. The fourth paragraph was sufficient as a defense, but was vicious in containing surplusage. 18 Am. and Eng. Ency. of Law, p. 558.

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Bluebook (online)
44 N.E. 563, 16 Ind. App. 229, 1896 Ind. App. LEXIS 358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kniss-v-holbrook-indctapp-1896.