Hazzard v. Shelton
Hazzard v. Shelton
Opinion of the Court
It is common, and the practice is of long standing, for the drawer to make and deliver to the payee several parts, usually designated a set of the same bills of exchange, each one of which states upon its face, that either part of the set being paid, the bill is to be considered discharged. A bill is thus drawn to avoid delays and inconveniences, which might otherwise arise from its loss or miscarriage, and also to enable the holder to transmit the same by different conveyances to the drawee, so as to insure the most prompt and speedy presentment for acceptance and payment. Chitty on Bills, 9 Am. ed. 175-6; Story on Bills, §§ 66, 67. The bona fide holder of any one of the set, if accepted, it is said may recover the amount from the acceptor, who would not be bound to accept any other of the set, which was held by another person, although he might be the first holder. So payment to the holder of one part, will be a complete discharge of the acceptor as to all the other parts. Id. 176; Id. § 226. If one of the parts has been accepted, the payment of another unaccepted part will not liberate the acceptor from liability to pay the holder of the accepted part, and such acceptor may therefore refuse to pay the bearer of the unaccepted part, and may compel him, if he suggests that he has lost the accepted part, to find sureties against his liability to pay the accepted part. See Wells v. Whitehead, 15 Wend. Rep. 527; Chit, on Bills, supra. And it would seem to have been held, that a person to whom any part of the set is first transferred, acquires a property in all the other parts,
In Downes & Co. v. Church, 13 Pet. Rep. 205, it was decided, that where the holder of one of a set of exchange, which has been protested, and due notice thereof given to the indorser, brings an action thereon against the indorser, and upon the trial produces the bill to which the protest is attached, it is not incumbent upon him to produce or account for the non-production of the other parts of the set. That it is not necessary for each part of the set to be presented for acceptance before the right of action accrues. If one of the other parts has been accepted or paid; or presented at an earlier time and dishonored, and due notice not given thereof; or if some other person is the. holder, and has given notice of his title to the party sued; these are matters of defence
In the case at bar, it is inferable from the number declared on, that the bill was drawn in a set of two parts, and that each was a counterpart of the other, save that one was called the “first,” and the other the “second of exchange.” Each part requests the drawee to pay it, if the other is “ unpaid,” and is equivalent to a direction to pay it only in that event. The payment of one part then, according to the literal import of the paper, is a complete compliance with the request of the drawer, and if the drawee has not accepted the other part, he is under no obligation either to accept or pay it. If he is in any manner chargeable upon it, or to some other person than the plaintiff, it devolves upon him to prove it, as a ground of defence, and the holder need not negative by proof the existence of such a state of facts.
This argument is not inappropriate to the case of a drawer when sued for the default of the drawee. If he pays the accepted part without notice of the adverse claim of some third person, under another of the set, he cannot be charged a second time upon the latter. Here the holder of the accepted number is asking a judgment upon it. The payment of it, we .have seen, would be proper, and operate a discharge of the liability indicated by the entire set; and the authorities cited are direct to establish, that if a demand of payment is properly shown or excused, then he is entitled to recover.
It is distinctly alledged, that on a specific day, which was the third day of grace, “at, &c., aforesaid,” that is, at Mobile, where the bill was payable, the notary public, with bill in hand, did make diligent search and inquiry for the acceptor, and not being able to find either him, or any one who was authorized to pay the same for him, did, at the request of the holder, protest the same; of all which, afterwards, on
Reference
- Full Case Name
- HAZZARD v. SHELTON
- Status
- Published