Rogers v. Ware

2 Neb. 29
CourtNebraska Supreme Court
DecidedJuly 1, 1873
StatusPublished
Cited by5 cases

This text of 2 Neb. 29 (Rogers v. Ware) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rogers v. Ware, 2 Neb. 29 (Neb. 1873).

Opinion

CjROÜNSE, Justice.

“ When one has done a mercantile act,” says Lord Ch. [42]*42Baron Gilbert, “ he subjects himself to mercantile law.” Gilbert's Lex Prœtoria, 288; 3 Kent’s Comm., 79. This law declares, that when Ware signed and delivered to the person representing himself as Whiteman the bill of exchange drawn on the Importers’ and Traders’ National Bank of New York for three thousand dollars, payable to William T. Allen or order, he undertook, in the event of its dishonor, to pay that sum to Allen or his indorsees. Jac. Law Dic., title Bill of Ex., IV. By an equally familiar rule of mercantile law, any holder of that bill must show such indorsements as establish his title before he can recover of Ware: the indorsement of the payee must, at all events, be shown; because, without that, it cannot appear that he made an order, upon the existence of which depends the title of the indorsee. Id. V. 2.

Rogers & Co., as bankers, well understood this, and demanded the indorsement of William T. Allen, but were deceived by a forgery. Unable to show the indorsement of Allen, and comprehending the futility of proceeding against Ware as the equitable assignees of Whiteman alias Allen, — when it must appear that he who forged the indorsement of the payee on the bill of exchange had likewise imposed a forged and worthless draft upon Ware in the purchase of it, —Rogers & Co. declare on the bill in question as payable to a fictitious payee, and therefore payable to bearer, relying on the circumstance that Allen had no interest in the bill to establish his character as fictitious pajme. That Allen never had any interest in the bill of exchange is undeniable. That there was such a person as William T. Allen, of the firm of Day, Allen, & Co., of Chicago; that such firm was understood by Ware to exist, and that he had made drafts in their favor; that he was requested to make this draft to the order of William T. Allen; and that he had in his mind the Allen who was [43]*43a member of the firm when he signed and delivered the draft; and that he had no reason to believe but that the same would be paid to the said Allen or his order, — is equally clear from the record. We then have the question presented, whether, under such a state of facts, Allen may be regarded as a fictitious payee, and his indorsement be dispensed with.

Among the first cases reported where this class of indorsement was considered is that of Tatlock v. Harris, 3 D. & E., 162. Harris drew a bill payable to Grigson & Co., and accepted the same, and gave it to Lewis & Potter, who indorsed it, in the name of Grigson & Co., to the plaintiffs. Harris defended on the ground that Grigson & Co. had not indorsed it. Lord Kenyon, Chief Justice, among other things, says, “ The necessary inference which the jury would have made was, that, at the time the bill was drawn, there were no such persons in existence as a Grigson & Co.; and that the fact was notorious to all the parties in the transaction, and particularly to the defendants in this cause. On these facts, what the conscience of the case is, no man can doubt; for it is extremely clear, that the defendant, who is now called upon to pay this bill, has received the value of it, and therefore ought, in conscience, to account for it. . . . This decision proceeds on the special circumstances of the case; namely, that the defendant, at the time of entering into his engagement, knew that there were no such persons as Grigson & Co., and that therefore, in point of formal derivation of title, that which is usually done could not be done in this ease. . . . The counts on which the judgment of this Court is given are those for money paid, and money had and received.”

The question of interest in the payee did not arise here ; but it will be remarked, that the decision of the [44]*44Court proceeds upon the circumstance that the payees named had no existence in fact, and that this was known to all the parties, especially the drawee.

Several other cases arose about the same time (1786-1788). That most fully considered, and reported at great length, is Minet v. Gibson, 1 Henry Blackstone, 561. The effect of the determination in the House of Lords is given in Jacob's Law Dic., Bills of Ex., 5, 3, as follows: “ If a bill of exchange be drawn in the name of a fictitious payee, with the knowledge as well .of the acceptor as the drawee^ and the name of such uraWee be indorsed upon it by the drawer with the knowledge of the acceptor, which fictitious indorsement purports to be to the drawer himself, or his order, and then the drawer indorses the bill to an innocent indorsee for a valuable consideration, and afterwards the bill is accepted, but it does not appear that there was an intent to defraud any particular person, such innocent indorsee for a valuable consideration may recover against the acceptor as upon a bill payable to bearer. Perhaps also, in such case, the innocent indorsee might recover against the acceptor as on a bill payable to the order of the drawer, or on account stating the special circumstances.”

This is a leading case; but it affords little or no support to the position of the defendant in error. Several elements are wanting in the case under consideration which existed in that of Minet v. Gibson. It is sufficient to call attention to the fact, that the drawer there indorsed the name of the fictitious payee on the bill himself, — a circumstance, as we shall have occasion to notice hereafter, which went to fix his liability. Coggill v. American Ex. Bank, 1 N. Y., 113; Herrick v. Whitney, 15 Johns., 240.

Among the cases pressed upon the attention of this [45]*45Court, as sustaining the position that Allen is to be regarded as a fictitious payee, is that of Foster v. Shattuck, 2 N. H., 446. This was assumpsit on a promissory note, made by the defendants, for #1,666.67, payable to Moses Foster or order, and was declared on as having been indorsed to the plaintiff by the payee. The signature was admitted ; but the indorsement appeared to have been made by a person in Milford in the name of Moses Foster. The defendant' contended that one Moses Foster of Andover was intended to be the payee; and, the case being submitted to the jury, they found that the plaintiff alone had always possessed the note, and loaned the money to two of the defendants for which it was given, and that no person of the name of Moses Foster had ever possessed any interest in it, or been particularly interested as payee.

Woodbury, J., says, “It appears, that though the whole interest of this note has ever been in the plaintiff, yet it was made payable to Moses, Foster or order. Hence he must claim through some person of that name who was intended as payee, if any particular person was so intended. But, the jury having found that no person in particular was intended as payee, no person was authorized to indorse it; because every negotiable note must be negotiated by the person (or his representative) to whom the note was made payable, and not by a person of the same name. 1 Hen. Bl., 607; Mead v. Young, 4 D. & E., 28. When a note, however, is made payable to the name of some person not having any interest, and not intended to become a party in the transaction, whether a person of such a name is or is not known to exist, the payee may be deemed fictitious.

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Bluebook (online)
2 Neb. 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rogers-v-ware-neb-1873.