Jerman v. Edwards

District of Columbia Court of Appeals
Jerman v. Edwards, 29 App. D.C. 535 (D.C. 1907)
1907 U.S. App. LEXIS 5481
Shepard

Jerman v. Edwards

Opinion of the Court

Mr. Chief Justice Shepard

delivered the opinion of the Court:

We think there was no error in the action of the court. Assuming, as contended for the appellants, that the note had been actually indorsed by Benjamin F. Edwards to the savings bank for collection for his account, the bank failed to collect it, and returned it presumably to him. Plaintiff’s title as holder did not pass under that indorsement, but through the delivery to her by Benjamin F. Edwards, who appeared as a witness on her behalf. She took title by delivery under the blank indorsement of the payee, Jerman, the effect of which was to make the note payable to bearer, and pass by delivery. Code, sec. 1338 [31 Stat. at L. 1399, chap. 854]. Whether the further indorsement, if in fact made by Benjamin F. Edwards, was a restrictive one, as defined in sec. 1341 [31 Stat..at L. 1400, chap. 854] is a question of no materiality, as the plaintiff did not claim the title thereunder, and there was no defense to the note as against either Benjamin F. Edwards, the savings bank, or the plaintiff. This indorsement not being necessary to the title of the plaintiff, she had the right to strike it out. Code, sec. 1352 [31 Stat. at L. 1401, chap. 854]. This provision of the Code is but declaratory of the law as it was recognized before the adoption of the negotiable instruments act. See Vanarsdale v. Sax, 47 C. C. A. 31, 107 Fed. 878, 880, and cases cited.

It follows that the judgment must be affirmed, with costs. It is so ordered. Affirmed.

Reference

Full Case Name
JERMAN v. EDWARDS
Status
Published
Syllabus
Negotiable Instruments; Promissory Notes; Indorsement. 1. Where a party becomes the holder of a promissory note by delivery under an indorsement in blank by the payee, he is entitled to strike out a subsequent indorsement under which he does not claim title, and in an action by him against the maker and payee, where there is no defense to the note as against any party whose name appears on it, it is immaterial whether such subsequent indorsement is restrictive or not, and the trial court properly directs a verdict for the plaintiff. 2. See. 1352, D. C. Code (31 Stat. at L. 1401, chap. 854), authorizing the holder of a promissory note to strike out any indorsement which is not necessary to his title, is declaratory of the law as it existed prior to the enactment of the negotiable instruments act.