Stitzel v. Miller

157 Ill. App. 390, 1910 Ill. App. LEXIS 300
Appellate Court of Illinois·Decided October 18, 1910·No. Gen. No. 5327·Published·Cited by 3 cases

Opinion

Mr. Justice Dibell

delivered the opinion of the court.

On December 18,1908, George B. Stitzel and 0. O. Brooks, the appellees, brought this suit against Loren B. Miller, ad ministrator of the estate of D. C. Miller, deceased, the - appellant, upon a promissory note purporting to be signed by said D. C. Miller, dated February 2, 1908-, and payable one year after date to the order of Harrison Miller and by him endorsed in blank and sold and delivered to appellees, which note was for the principal sum of $6,500., with interest at the rate of six per cent per annum. Appellant obtained an order of the court below impounding the note, and thereafter filed a special demurrer which prayed oyer and set out the instrument sued on. The demurrer was overruled and appellant then filed a plea of non assumpsit, with his affidavit attached that to the best of his knowledge," information and belief, the signature of the deceased to said note was not his genuine signature and that the plea of non assumpsit was true. Hpon a jury trial appellees had a verdict for $7,140.25. Motions by appellant for a new trial and in arrest of judgment were denied and appellees had a judgment upon the verdict, to be paid in due course of administration, and from that judgment the administrator prosecutes this appeal. He contends: (1) that the instrument sued upon is not negotiable and therefore appellees have no title upon which they can recover in their own names; (2) that the suit was prematurely begun and therefore appellees cannot have judgment; (3) that the court erred in refusing to admit competent evidence offered by appellant tending to show that the signature to this instrument was not the genuine signature of D. C. Miller, deceased; (4) that the court erred in admitting proof of the conduct of the administrator and of one out of nine heirs at law of deceased; (5) that the court erred in refusing certain instructions requested by appellant.

The endorsement of the name of the payee on the back of this instrument and its sale and delivery by him to appellees, made them the legal owners thereof and authorized them to maintain an action at law upon it in their own names, if it was negotiable. Kistner v. Peters, 223 Ill. 607; Keenan v. Blue, 240 Ill. 177. Appellees have caused the original instrument and certain other instruments hereafter mentioned to be certified to this court. The original instrument sued on is therefore before us. It is evident that the parties used a printed blank prepared by and for the Stocking Trust & Savings Bank, and everything is in print except the date, names, amount, time when payable and rate of interest. The first part is printed in large type and is an ordinary promissory note. Thereafter follows in fine print a power of attorney to confess judgment upon the note. Then follows in fine print the following words: “We also agree that in case said note is not paid at maturity that it is at the option of the holder hereof to extend as he deems proper the payment of the above note, and that said extension shall not in any manner release one or either of us from the payment hereof.” It is contended that these words make .the instrument nonnegotiable. The question seems not to have been expressly decided in Illinois, but outside of Illinois in some jurisdictions those or similar words are held to destroy the negotiability of the instrument, and in others like words are held not to have that effect. The Negotiable Instrument law of 1907 requires that to make an instrument payable in money negotiable it must be payable on demand or at a fixed or determined future time. Such also was the law before the adoption of that Act. It is contended that the words above quoted from the instrument sued on give the holder the option to extend the note as he pleases, and that it cannot be known what extension or extensions he may grant, and therefore the time when the note will become payable is uncertain and cannot be determined, and therefore the note is not negotiable. We conclude that the principle laid down in Dorsey v. Wolff, 142 Ill. 589, is applicable here. It will be observed that the note is dated February 2, 1908, and that the first part of the note makes it expressly due one year after date, and that the clause above quoted does not give the holder an option if the note is paid at maturity. It is only in case the payee fails to perform his contract and pay at maturity that an option arises in the holder to extend the time. In Dorsey v. Wolff, supra, the notes there sued on by an endorsee against the maker contained a provision for the payment of a certain percentage as attorney fees if the notes were not paid when due, and it was contended that this provision made the notes non-negotiable and therefore the endorsee had no right to bring suit in his own name on the notes. The court said that the promise to pay the attorney fees was a promise to do something after the note matured; that it did not affect the character of the note before or up to the time of its maturity; that the stipulation could not affect the negotiability of the note because the negotiability of the note for all practicable purposes is at an end when it matures; that commercial paper is expected to be paid promptly when it is due; that this stipulation could have no force except on the maker’s default; that if the maker kept his contract by paying his note at maturity no element of uncertainty entered into the contract, and that the notes in question were negotiable notwithstanding the stipulation. Numerous authorities from, this and other states are there cited, holding in various forms that that which only produces uncertainty after the note fails to be paid at maturity does not destroy its negotiability. Following and applying the rule there laid down, we conclude that in this suit the clause above stated does not destroy the negotiability of the note.

The note was due on February 22, 1909. The suit was begun on December 18, 1908. The first summons was not served. A second summons was issued on January 23, 1909, and served on March 10., 1909. The filing of the praecipe and the issue of the first summons were the commencement of this action at law. C. & N. W. Ry Co. v. Jenkins, 103 Ill. 588; Schroeder v. M. & M. Ins. Co., 104 Ill. 71; M. M. Ins. Co. v. Schallman, 188 Ill. 213; 1 Enc. L. & P. 1082; 1 Encyc. of Pl. & Pr. 124. Therefore the suit was begun before the maturity of the note by its face, even though the summons was not served till after that time. In an ordinary action at law a plaintiff cannot recover for money not due when the suit was begun and that defense can be made under the plea of non assumpsit, unless its non-maturity is the result of an agreement extending the original time for payment. If then this was an ordinary action at law, and if the question is properly preserved for review, the judgment cannot stand. We are disposed to consider this defense unavailable here for two reasons: First. We doubt if the question is properly preserved for review. In appellant’s special demurrer, after craving oyer and setting out the instrument, one of the grounds of the demurrer was that the note was not due when the suit was begun, and another was that the cause of action had not accrued to the plaintiffs when the suit was begun. That demurrer was overruled. If appellant had abided by it the question would have been thereby preserved for review. But appellant thereafter filed a plea of non assumpsit and thereby waived the demurrer. C. & A. R. R. Co. v. Clausen, 173 Ill. 100. When the note was finally offered in evidence no such objection was made to its introduction.

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Stitzel v. Miller, 157 Ill. App. 390, 1910 Ill. App. LEXIS 300 (Ill. Ct. App. 1910).

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