Munson v. Nichols
Munson v. Nichols
Opinion of the Court
delivered the opinion of the Court:
The error assigned upon this record is, in overruling the demurrer to the fifth plea.
The facts disclosed by the plea show, that by an artifice of the payee of the note, the defendant was induced to execute it as one payable absolutely, under the belief that it Avas another one of a different character—one payable only on a contingency.
This makes a case, not merely of fraud in relation to the contract or consideration of the note, but of fraud and circumvention in obtaining the making or executing of the note, Avhich, under the eleventh section of the act relative to negotiable instruments, is pleadable inTbar to any action brought on the note by any assignee of it.
We think it clearly a case contemplated by the statute. Woods v. Hynes 1 Scam. 103; Mulford v. Shepard, Id. 583; Latham v. Smith 45 Ill. 25.
It can not be said as a matter of law, that the plea shows such negligence on the part of the payee as avoids the defense. It would be a question of fact, for the jury to pass upon and determine, whether the payee was guilty of such negligence in executing the note, and allowing it to go into circulation, as should preclude him from setting up the defense.
Perceiving no error in overruling the demurrer, the judgment is affirmed.
Judgment affirmed.
Reference
- Full Case Name
- Jefferson Munson, use, etc. v. Roswell C. Nichols
- Cited By
- 5 cases
- Status
- Published
- Syllabus
- 1. Fraud and circumvention—in obtaining the execution of a promissory note. In an action on a promissory note by an assignee thereof before maturity against the maker, he defendant filed a. plea, which disclosed facts showing that by an artifice of the payee of the note the defendant was induced to sign it as one payable absolutely, under the belief that he was signing another one of a different character, payable only on a contingency : Held, that such facts constituted fraud, not merely in relation to the contract or consideration of the note, but such fraud and circumvention in obtaining its execution as, under the statute, was pleadable in bar to any action on the note by any assignee. 2. Same—of the negligence of the maker, and whether it may be urged on demurrer to a plea. Nor could it be urged as matter of law on demurrer to such a plea that it disclosed facts showing such negligence on the part of the payee in executing the note and allowing it to go into circulation as-avoided the defense. That would be a question of fact for the jury to determine.