Farmers' Savings Bank of Arispe v. Arispe Mercantile Co.
Farmers' Savings Bank of Arispe v. Arispe Mercantile Co.
Opinion of the Court
This action was begun upon a promissory-note purporting to have been made by the Arispe Mercantile Company hy Burr Forbes, president, and Frank Forbes, secretary, payable to the order of Burr Forbes & Son, and indorsed by that firm to the plaintiff bank. To this claim the
You are instructed that if the plaintiff has shown and proved by a preponderance of tbe evidence that tbe note in question, Exhibit A, was renewal of the note of date May 25, 1904, and that one of tbe defendants, Burr Forbes or Frank Forbes, delivered said note in question, Exhibit A, to the plaintiff in renewal of tbe note for $1,000 of date May 25, 1904, and you further find that at tbe time of tbe delivery of the note in question, Exhibit A, to plaintiff by one*248 of the defendants that tbe indorsement now appearing on said' note was then on the note, then yon are instructed that this in law would amount to an adoption of the signatures then appearing on said note, and on this issue of the indorsement you should find for the plaintiff and against Burr Forbes &' Son. And, in connection herewith, if you find that the defendants Burr Forbes & Son indorsed Exhibit A, then you are instructed that a valuable consideration would be presumed, and plaintiff should recover against the defendants Burr Forbes & Son, unless Burr Forbes & Son show and prove by a preponderance of the evidence that there was no valuable consideration for said note in question, Exhibit A. But, if you find the fact to be that the defendant Burr Forbes & Son received $1,000 for the sale of the first note of date May 25, 1904, and that this note in question, Exhibit A, is a renewal thereof, and you find that the defendants Burr Forbes & Son indorsed Exhibit A as heretofore defined, then your verdict should be for the plaintiff, and against Burr Forbes & Son.' Should you find under the evidence that there was no valuable consideration, or should you find that the defendant did not indorse the note as heretofore defined, then your verdict should be for the- defendants Burr Forbes & Son.
It will be observed that this instruction gives the jury no authority to find for plaintiff on the second count of its petition, but, at most, authorizes them to look to the original note only as bearing upon the consideration of the note mentioned in the first count. In this we think there was error; for, as we have already said, we may assume the proof of the alleged forgery to have been complete, yet the right of recovery on the original note would not necessarily be impaired. The giving of a renewal note had no effect in the absence of an agreement therefor to discharge either the makers or indorsers of the original obligation, if, for any reason not chargeable to the wrong or fraud of the holder, the renewal ■proves to be invalid. Indeed, in accordance with a long line of precedents, it is always allowable for the plaintiff ’ to declare in his petition in one count upon a promissory note or other written obligation, and in another upon the original
Eor the reasons stated, the judgment of the district court is reversed.
Reference
- Full Case Name
- The Farmers' Savings Bank of Arispe v. Arispe Mercantile Company and Others
- Status
- Published