McConkie v. Babcock

70 N.W. 103, 101 Iowa 126
Supreme Court of Iowa·Decided February 2, 1897·Published·Cited by 6 cases

Opinion

Kinne, C. J.

[128] 1 [127] I. Defendant, at the close of the testimony, moved the court to instruct the jury to return a verdict for him. The motion, which was overruled, was based upon the grounds — First, that the undisputed evidence showed that there was no consideration from Dent to Babcock for the note in controversy; second, that it appeared from the undisputed evidence that plaintiff was not the purchaser of the note for a valuable consideration in the usual course of trade; and, third, that it likewise appeared that plaintiff was not the purchaser of the note for value, and before maturity, without notice of the failure of consideration. Borne of these same questions were raised, also, upon rulings upon instructions asked and refused, as well as upon those given in the charge of the court. The jury, in answer to a special interrogatory, found that there was a consideration for the note sued upon. It appears that one Dent, the payee of this note, was the owner of what was known as the Merchants Specialty Company and its business; that he made certain representations to the defendant as to the prospects and condition of said concern, the amount of property it had on hand, and that it was all paid for; that certain goods had been ordered and paid for, and that he had orders from responsible parties for one thousand three hundred dollars worth of goods, upon which there would be seven hundred dollars profit; that the goods sold readily on the market at a [128] good profit, and he had a good trade worked up for the same; and other representations, on the faith of which defendant purchased a one-half interest hrthe business, paying therefor seven hundred and fifty dollars in cash, and also giving the note in suit. Some of these representations were undoubtedly false. As to others, there is some testimony which may have warranted the finding of the jury that there was a consideration.for the note. While, sitting as a jury, we should not have made the finding they did, still it is not so lacking in support in the evidence as to justify us in disturbing the verdict in that respect. There is evidence tending to show, that at about the time the note was transferred, the defendant still thought he had made a good investment. We cannot, in view of the evidence and special finding, hold that the note was without consideration.

2 II. As the jury found that there was a consideration for the note, and as we hold that the evidence is such that we may not disturb that finding, it is not material as to whether plaintiff was a purchaser for value in the usual course of trade; that is, as long as there was a consideration for the note, and it has been assigned to plaintiff, it is good in his hands, regardless of whether he took it simply to secure a pre-existing debt, or in so taking it made a valid agreement to extend the time of payment of the indebtedness, so as to make him a bona fide holder of the note for value. If there was a consideration for the note, then it is good in plaintiff’s hands as security for Dent’s debts to him, and may be enforced against the defendant.

III. The other questions discussed by defendant’s counsel, as to whether, when plaintiff took the note, he knew or had reason to know that it was without consideration, is disposed of by the finding of the jury that it, in fact, was given unon consideration.

[129] IV. We discover no error in giving or refusing to give instructions. Those asked were in substance embraced in the charge as given to the jury.

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McConkie v. Babcock, 70 N.W. 103, 101 Iowa 126 (iowa 1897).

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