Pape v. Hartwig

23 Ind. App. 333
CourtIndiana Court of Appeals
DecidedNovember 28, 1899
DocketNo. 2,888
StatusPublished
Cited by5 cases

This text of 23 Ind. App. 333 (Pape v. Hartwig) 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
Pape v. Hartwig, 23 Ind. App. 333 (Ind. Ct. App. 1899).

Opinion

Henley, J. —

Appellee, who was the plaintiff below, commenced this action against appellants on two promissory notes which had been purchased by him of one Clayton L. Stoner, the payee named in both of said note's. The notes were in form negotiable by the-law merchant. The appel[335]*335lants Hunter and Becker jointly answered in two paragraphs. The appellant Pape separately answered in two paragraphs. The first paragraph of each answer was a general denial. The second paragraph alleged in substance that these notes were given for a patent right; that the words “given for a patent right” were not written in the body of the notes or either of them; that appellee purchased said notes with full knowledge of all said facts. Appellee replied first the general denial; second, that he purchased the notes in suit in good faith, before their maturity, for a valuable consideration and without knowledge that the notes had been given for a patent right. This reply was addressed to the joint-answer of appellants Blunter and Becker. At the same time appellee filed a reply in three paragraphs to appellant Pape’s separate answer, the first paragraph of which reply is a general denial, the third being in substance the same as that addressed to the answer of Blunter and Becker, while the second paragraph alleged that there was an agreement between appellant Pape and Stoner, the payee of the notes, that the words “given for a patent right” should not be inserted in the face of the notes, so that the said Stoner might the more easily negotiate them; that appellee had no notice or knowledge of said agreement at the time he purchased said notes, and had no notice or knowledge at the time he purchased said notes that said notes were given for a patent right. There was a trial by jury, and verdict and judgment for appellee -for the principal and interest of said notes, costs and attorneys fees.

There is no question raised in this court as to the sufficiency of any of the pleadings. Counsel for appellants say: “The only error relied upon, and to which we desire to call the attention of this court, is the overruling of the motion for a new trial.” It is also conceded by appellants’ counsel, that, if appellee purchased the notes in suit without notice that they were given for a patent right, he would be entitled to enforce them against appellants. Such is the rule laid [336]*336down in numerous cases by our Supreme Court. New v. Walker, 108 Ind. 365; Sondheim v. Gilbert, 117 Ind. 71, 5 L. R. A. 432; Tescher v. Merea, 118 Ind. 586.

The motion for a new trial embraces twenty-seven reasons which we will dispose of in the order in which they are discussed in appellants’ brief. Reasons three, four, five, and six relate to the action of the court in refusing to permit appellee while a witness in his own behalf upon cross-examination to answer the following questions, viz.: (3) “Can you give the jury any idea how much money you have loaned, and how many notes you have purchased during the time you have been in business? (4)' Have you purchased any notes and mortgages other than the ones in. suit? (5) Was it your custom to buy the notes that you purchased without asking any questions as to what the consideration was, or what they were given for? (6) Is it your custom to purchase notes of strangers without asking why the note was given or making some inquiry as to whether or not the note was all right?”

The facts which impeached the validity of the note were specially pleaded by appellants in their answers, and upon the issue thus raised the appellants had the burden of proof, fhe burden of proving the averments of the reply was upon appellee. Cronkheit v. Nebeker, 81 Ind. 319, 42 Am. Rep. 127. In the case at bar the only facts averred in appellants’ answers, the proof of all of which would have removed appellee from the position of a bona fide holder, were: (1) That the notes wrere given for a patent right; (2) that the words “given for a patent right” were not written in the body of the notes; (3) that appellee knew at the time he purchased the notes that they had been given for a patent right. We are unable to see how the legitimate answers to either of these questions would have tended to prove any of the material allegations of appellants’ answers, nor could they have tended to disprove the averments of appellee’s reply. It "would hardly be contended that the answers to these [337]*337questions would show that the notes were given for a patent right, or that the answers would show that the words “given for a patent right” were not in the notes. Then if competent for any purpose it must have been to show notice upon the part of appellee of some infirmity existing in the notes, and the only infirmity alleged is the failure to insert the words, “given for a patent right.”

The answers may have tended to prove a general negligence or .lack of diligence upon the part of appellee in the transaction of his business, but notice or knowledge of facts which might affect the validity of commercial paper as between the original parties to it does not, and cannot, depend upon the negligence or-diligence of the-purchaser. Collins v. Gilbert, 94 U. S. 753; Tescher v. Merea, 118 Ind. 586.

"What was done by appellee in certain other particular cases, or what he generally did as to using diligence in investigating the integrity of the paper he purchased, or the number of notes and accounts he had purchased prior to the purchase of the notes in suit, would certainly not be proper evidence to show notice of some infirmity in this particular instance. If such evidence is-permitted to go to the jury with the sanction of the trial court, with the understanding that it may or can be used by them to affect or determine the validity of commercial paper, then the use of such form of promissory note or bill of exchange- had as well be abandoned, as its value to the merchant and banker and the commercial world would end.

Seasons fifteen, sixteen, seventeen, twenty, and twenty-one of the motion for a new trial present the question as to whether the trial court erred in permitting counsel for appellee while cross-examining one of appellants, after an objection to a question addressed to the witness had been sustained, to make an offer in the presence and hearing of the jury, over appellants’ objection, to prove the facts as detailed in the question. Appellants’ counsel objected to any offer to prove [338]*338being made, on cross-examination, in the presence of. the jury, as tending to bias and prejudice the jury. The court overruled the- objection. Counsel for appellee made the offer to prove, and counsel for appellant moved the court to instruct the jury not to consider any facts mentioned by counsel in the offer. This motion was overruled, the court saying in the presence and hearing of the jury: “Motion overruled. The jury áre supposed to be honest men and do their duty as citizens and as jurors, and I think understand without instruction that offers are not evidence, and should not be considered as such; they are supposed to be doing impartial justice under the law, without being instructed specially at every offer that is made.”

The offers to prove should not have been permitted. The only 'question- is whether such action in this case amounts to reversible error.

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Bluebook (online)
23 Ind. App. 333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pape-v-hartwig-indctapp-1899.