Romine v. Foley
Romine v. Foley
Opinion of the Court
The opinion of the court was delivered by
This action was brought by J. F. Romine against E. F. Foley, upon a promissory note executed by the defendant to the Star Land Company, which the latter transferred to the plaintiff before maturity. The defendant claimed that the note was obtained through the fraud of the Star Land Company, of which the plaintiff had notice. Verdict and judgment were given for the defendant and plaintiff appeals.
It appears that on September 21, 1912, the Star Land Company sold a tract of land in Texas to the defendant. He made a cash payment of $1,000 and for the balance due he executed notes, one of which was due on demand, and others became payable at future dates. The demand note for $2,500 was paid shortly after it was executed, and the one in suit which is for $6,864.64, due March 1, 1913, and which had been transferred to plaintiff, was not paid. The defendant resists payment of the note on the ground that the land company procured it by misrepresentation and fraud. The fraud relied
As to the price of labor he testified that he was told that he could secure all the labor he wanted for fifty cents a day, but he says that when he went there he found it hard to get good Mexican labor for $1.50 per day. According to the testimony there were no representations made as to the cost of Mexican labor or that of any other particular nationality and not even as to the cost of good help. It was merely that labor could be procured for fifty cents per day. Nothing was said as to whether the labor included board and lodging. Evidence that he could not find good.Mexican help for less than $1.50 per day is not proof that he could not get other help at fifty cents per day.
Defendant gave testimony to the effect that sometime after the sale when he had expressed dissatisfaction with his purchase of the land, McColl, an officer of the company, said he would resell the land for him and if he did so, the notes given by defendant would be returned to him. This proposal of a resale does not admit misrepresentation and does not fairly tend to prove fraud. Nor is there anything substantial in the claim that fraud was shown in the representations as to corn or cost of labor. A charge of fraud must be proven, it cannot rest on mere suspicion or conjecture. The testimony produced does not rise to the rank of evidence of fraud and certainly is not sufficient to cast the burden of proof upon plaintiff that he was a holder in due course.
The judgment is therefore reversed and the cause remanded with directions to enter judgment in favor of plaintiff for the amount due on the note.
Reference
- Full Case Name
- J. F. Romine v. E. F. Foley
- Status
- Published
- Syllabus
- SYLLABUS BY THE COURT. Promissory Note — Claim of Misrepresentation and Fraud — No Evidence to- Sustain Defense of Fraud. In an action upon a promissory note transferred by the payee to another before it was due, in which it was alleged that the payee procured it by misrepresentation and fraud, it is held that the testimony produced did not amount to substantial evidence of fraud and further did not tend to prove that the holder had any knowledge or notice of the claim of fraud when he acquired the note.