Long v. Gwin
Long v. Gwin
Opinion of the Court
This has been changed, and this law of variance abrogated, by the Negotiable Instruments' Law, which declares that—
“The validity and negotiable character of an instrument are not affected by the fact that « * * * * * bears a seal.” Code 1907, § 4963.
The mere addition of a scroll after the signatures on this note, there being no words of reference or adoption in the note itself, did not make it a sealed instrument. Lytle v. Bank of Dothan, 121 Ala. 215, 26 South. 6.
Its designation as a “bill single” in the complaint was therefore a misnomer, but wholly without legal significance, so far as this case is concerned. To hold that it still works a fatal variance between pleading' and proof, in spite of the statutory change referred to, would be an absurd and intolerable technicality.- ■
Section 5018 is:
“A person placing bis signature upon an instrument otherwise than as maker, drawer, or acceptor is deemed to be an indorser, unless he clearly indicates by appropriate words his intention to be bound in some other capacity.”
Section 4974, subd. 6, is:
“Where a signature is so placed upon the instrument that it is not clear in what capacity the person making the same intended to sign, he is to be deemed an indorser.”
Section 5022 is:
“Where a person places his indorsement on an instrument negotiable by delivery he incurs all the liabilities of an indorser.”
Prior to the adoption of the Negotiable Instruments Law in the several states, an irregular indorsement — that is, an indorsement by one not otherwise a party, before the delivery of the instrument — was variously regarded as creating the liability of indorser, second indorser, maker, guarantor, or surety. 8 Corp. Jur. p. 74, § 121. The purpose of the new law was to give a uniform status and effect to such indorsements. But we think that purpose is sufficiently accomplished by holding that the declared status is conclusively fixed as to subsequent holders in due course, but only prima facie fixed as to immediate parties. This is in harmony with the theory prevailing heretofore in this and *360 other states, and better meets the requirements of justice than the rigid rule which forbids any inquiry into the real contract of the parties, as shown by their antecedent declarations, their course of dealing, or the attendant circumstances.
In other jurisdictions, the courts are not in harmony in their application of the rule under the provisions of the Negotiable Instruments Law. The rulings are stated and the authorities collected in 8 Corp. Jur. p. 75, § 122, and we deem it unnecessary to discuss the subject further. We adhere to our ruling in this case on the former appeal, which is in no wise affected by any of the provisions of the Negotiable Instruments Law, as we now construe them.
“That notice of dishonor must be given to each indorsor on a negotiable note, and, if such notice of dishonor is not given, such indorser is discharged from liability on such note.”
So, also, there was error in refusing to give for defendant Long, as requested, charge 6:
“That if the note introduced in evidence in this case stood alone and unexplained, the law would hold that R. H. Long was only an indorsor of the note.”
This note was given to a third party for money borrowed’by its makers and indorsers to pay the debt of the corporation, and not as security for that debt. Hence it was founded upon a legal consideration, regardless of the use made of the money. Instructions to the contrary were properly refused.
For the errors pointed out above, the judgment must be reversed, and the cause remanded for another trial.
Reversed and remanded-.
Reference
- Full Case Name
- LONG Et Al. v. GWIN
- Cited By
- 10 cases
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- Published