Jones v. Martin
Jones v. Martin
Opinion of the Court
The plaintiff, without filing a general replication to pleas 2, 3, 4, and 5, replied specially that the plaintiff purchased the notes sued on before maturity, for value, in the usual course of business, and without notice of any infirmity in the instruments or defect in the title of the person negotiating them. The court sustained a demurrer to this replication in so far as it applied to pleas 2 and 3.
The note sued on issuing out of and resting upon a contract not void ab initio was not subject to the defense that the transaction in which the note was given was by a foreign corporation' in violation of section 232 of the Constitution, and sections 3642-3646, Code 1907. — Citizens’ Nat. Bank v. Bucheit, supra. The court, therefore, erred in sustaining the defendant’s demurrers to the replication to plea 2.
“No such corporation, its agents, officers, or servants, shall transact any business for or in the náme of such corporation within the state of Alabama without having first procured said permit, and all contracts, engagements, or undertakings or agreements with, by, or to such corporation, made without obtaining such permit, shall be null and void.”
Under the uniform holding of the Supreme Court of this state, a negotiable note, “issuing out of, and resting on a contract thus expressly declared to be absolutely void, cannot be enforced even by a bona fide purchaser for value without notice.” —Hanover Nat. Bank v. Johnson, 90 Ala. 549, 8 South. 42; Ala. *678 Nat. Bank v. Parker & Co., 146 Ala. 513, 40 South. 987; Whitehead v. Coker, 76 South. 484; Birmingham Savings Co. v. Curry, 160 Ala. 370, 49 South. 319, 125 Am. St. Rep. 102; Moog v. Hannon, 93 Ala. 503, 9 South. 596; Bozeman v. Allen, 48 Ala. 512; Saltmarsh v. Tuthill, 13 Ala. 390.
In passing upon this question in Citizens’ Nat. Bank v. Bucheit, supra, we felt that we were bound by the holding in Drew v. Ft. Payne, 186 Ala. 285, 65 South. 71; but on further consideration of the question and the holding in that case, in the light of the subsequent holdings of the Supreme Court, it is manifest that the question was not presented in the Drew Case, and that the court was. not considering the effect of the statute quoted above. See Ex parte Banks, 185 Ala. 275, 64 South. 74; Douglass v. Standard Real Estate Co., 189 Ala. 223, 66 South. 614. The holding on this point in Citizens’ Nat. Bank v. Bucheit, supra, was unsound, and that case is modified to conform to the views above stated.
The replication was not an answer to the defendant’s plea 3, and the demurrers were properly sustained.
As the case must be reversed, and, as the issues will necessarily be different on another trial, what we have here said will be a sufficient guide- for another trial.
Reversed and remanded.
Reference
- Full Case Name
- Jones v. Martin. Assumpsit.
- Cited By
- 11 cases
- Status
- Published