Locke v. Merchants National Bank

66 Ind. 353
CourtIndiana Supreme Court
DecidedMay 15, 1879
StatusPublished
Cited by26 cases

This text of 66 Ind. 353 (Locke v. Merchants National Bank) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Locke v. Merchants National Bank, 66 Ind. 353 (Ind. 1879).

Opinion

PnaiaNS, J.

This was an action, known at common law-as an action on the case, by the appellee against the appellants. to recover from the latter damages sustained by the former, through the neglect of the latter to discharge their [355]*355obligations in the collection of a note, of which the following is a copy:

“ $200. Roblesville, Ind., Dec. 20th, 1875.
Thirty days after date, I promise to pay to the order of Fuller, Childs & Co., two hundred dollars, value received, without any relief from valuation or appraisement laws of the State of Indiana, with interest at ten per cent: per annum from date until paid. If this note be collected by suit, the judgment shall include the reasonable fee for' plaintiff’s attorney. Payable at Citz. Bank, Roblesville, Ind. R. II. Davidson.”

Endorsed: “ Fuller, Childs & Co.”

The complaint alleges that the note was payable at the Citizens Bank, Roblesville, Indiana, a private bank, owned and managed by the appellants, Locke and Bonebrake; that1 it was endorsed before due, to the appellee, The Merchants1’ Rational Bank, of Toledo, Ohio, and was transmitted by that bank, before due, to said Citizens Bank of Roblesville, for demand, protest and notice, etc., which said latter bank neglected to cause to be done ; that it failed to notify the plaintiff, appellee, or any of the endorsers of said note; whereby the appellee lost, etc.

Demurrer-to the complaint, for want of sufficient facts, overruled, and exception entered.

Answer in five paragraphs. Demurrers to the third and fifth sustained, and exceptions entered.

The remaining paragraphs were :

1. General denial.

2. And for a second paragraph, defendants say they admit the deposit with them for collection of the said note; that they did not protest the same; but they say that heretofore, to wit, on the 7th day of February, 1876, Richard H. Davidson, the maker of said note, filed his voluntary petition in bankruptcy, in the District Court of the United States for the district of Indiana; that after[356]*356ward, on the 14th day of March, 1876, said Davidson filed in said court his written proposal for a composition with his creditors, in pursuance of section 5103 of the bankrupt law, and that such proceedings were had thereon that, on the 23d day of May, 1876, said proposed composition was confirmed, and no discharge was ever granted to said Davidson ; that the plaintiff never filed said .claim in the bankrupt court, and never accepted the provisions of said eoiñposition, and that said Davidson is now the owner of ■real estate of the value of two thousand dollars, etc.

The fourth paragraph is not materially different from the second.

Reply to the second and fourth paragraphs of answer: “ That the plaintiff*,” appellee, “ is a foreign corporation, doing business in the city of Toledo, Ohio; that the endorsers on the note, Fuller, Childs & Co., are also residents of said city of Toledo,, and are solvent and responsible; that, by the failure and negligence of the defendants in giving said endorsers or the plaintiff due or legal notice of the non-payment of the note, they have thereby deprived the plaintiff of all legal recourse against endorsers,” etc.

The defendants filed a motion as follows :

■ “ The defendants move the court for a judgment in their favor on the pleadings, for the reason that the second and fourth paragraphs of answer are composed wholly of material allegations of new matter, which are not specifically controverted by the reply.”

Motion overruled; exception ; trial by jury.

Ro general, but the following special, verdict was returned, viz.:

“ We, the jury, return ,the following special verdict in the above cause:
“1. We find that the note, a correct copy of which is filed with the complaint, was executed by R. Ii. Davidson to Fuller, Childs & Co., of Toledo, Ohio, and was payable at the Citizens Bank, Roblesville, Indiana.
[357]*357“ 2. That, before the maturity of said note, said Fuller, Childs & Co., for a full and valuable consideration, transferred the same to the plaintiff', by their endorsement in writing on the back thereof.
“ 3. After purchasing said note, the plaintiff’, on the thirteenth day of January, 1876, sent the same to the defendants, who were the proprietors of the Citizens Bank, for collection.
“ 4. Defendants received it before maturity, and, as plaintiff’s agents, demanded payment of said R.TI. Davidson; said Davidson failed to pay it.'
££ 5. Defendants and Davidson live in the town of !SToblesville, Indiana, and the plaintiff and said Fuller, Childs & Co. reside and do business in the city of Toledo, State of Ohio.
“ 6. The defendants, after said Davidson failed to pay said note, failed and omitted to send said Fuller, Childs & Co. any notice of the non-payment of said note, and failed to have the same protested for non-payment.
££ 7. That the plaintiff, after receiving said note, immediately demanded payment of the same from said Fuller-, Childs & Co., who were and have been solvent for more than two years last past.
“ 8. That said Fuller, Childs & Co. refused to pay said note for the reason that they had received no notice of the non-payment of said note, and were, therefore, no longer-liable on their endorsement of the same.
££ 9. That the amount now due on said note to the plaintiff is $221.48-100, principal and interest.
“ 10. That on the 7th day of February, 1876, said Davidson filed his voluntary petition in bankruptcy, and, on the 23d day of May following, effected a composition with his creditors, which composition was duly approved by the bankrupt court, by the terms of which he wms to pay his said creditors fifty cents on the dollar in full of their claims.
[358]*358“ 11. That the plaintiff' and said Fuller, Childs & Co. had notice of said composition proceedings.
“ 12. That the defendants received sai'd note for collection, and recognized the same as payable at their said bank
“ 18. That no part of said note has been paid by any one.
“ 14. That, on the 29th day of January, the plaintiff received a letter from the defendants, inclosing said note which was the first notice the plaintiff’had of the non-payment of said note.
“15. If, upon the foregoing facts, the law is for the plaintiff', we find for the plaintiff and assess his damages at two hundred and twenty-one dollars and forty-eight cents.
“ 16. If the law is with the defendants, then we find for the defendants.”

The defendants moved for a venire de novo for the reasons:

“1. That said verdict does not purport to contain all the material facts given in evidence or proven on the trial of said cause;
“ 2.

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Bluebook (online)
66 Ind. 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/locke-v-merchants-national-bank-ind-1879.