Dodge v. Bank of Kentucky
Dodge v. Bank of Kentucky
Opinion of the Court
delivered the opinion.
The President, Directors, and Company of the Bank of Kentucky, brought their action of debt in the court below against David Dodge, Silas W. Robins, John Wilkinson, John Coons and George Norton, and declared on a negotiable note executed by said Dodge, to all the others jointly, and by them jointly endorsed to the bank, and protested for non-payment. The defendants below craved oyer of the note, and pleaded nil debit. On the trial of the issue the plaintiffs below gave in evidence the note aforesaid with its endorsements, which was read without objection, and proved that the note was discounted in the Washington Branch Bank, and that on the last day of grace, being the ninth
It has been contended in argument that the court below ought to have sustained this motion, because the appellees had introduced no proof of the handwriting of the endorsers; and the plea of nil debit cast the onus probandi in this respect on the appellees. This case has been likened to an issue on the plea of non est factum to a bond, where, if the plaintiff fails to prove the execution of the note, he cannot recover. However plausible this argument may appear at first blush, it will be completely overturned by attending to the distinction between a motion to instruct as in case of a non suit, and an objection to the admission of evidence. In the former, the evidence is admitted, but its applicability and sufficiency is contested; and in the latter case, the evidence, if the objection be valid, cannot be read at all to the jury. Motions to instruct as in case of non suit partake of the nature of a demurrer to evidence, and in modern practice is frequently indulged in lieu of a demurrer. It is frequently used when the allegata et probata do not agree, and the plaintiff proves a case not as he has laid it. And sometimes, it is permitted when the plaintiff gives no evidence proving, or conducing to prove, some material fact, which is a necessary link in the chain of facts, which compose his cause of action. In every motion, then, so to instruct a jury, every fact which the evidence proves, and conduces to prove, as well as those facts which may naturally and rationally be inferred from those proved, must necessarily be considered as admitted by the party making the motion; and the court is appealed to to say, after all these admissions, whether, in law, the plaintiff has made
But the want of proof of the handwriting of the endorsers admits of another answer still more irrefragible. By an
This note thus negotiated with, or discounted by, the bank, is placed on the footing of a foreign bill of exchange, and in every respect the endorsee and endorser must stand in the same relation. Now, it is well settled, that where an endorsee may sue an endorser of such, bill, he may declare on the endorsement of the bill only, and need not state any consideration to have passed. That is presumed from the fact of endorsement. In such case the action is founded upon the endorsement, as much so as in the case of a suit against the maker of a promissory note. The endorsement is the essential fact on which the suit is founded. It is true the engagement is a contingent one, and therefore the plaintiff, in such cases, may be held to prove other facts to shew the contingency has happened, by which the defendant has become liable, such as the presentment of protest of the bill, and reasonable notice to the defendant; but this cannot materially alter the case. A promissory note may be drawn payable on not only one, but many contingencies, and a plaintiff on such note may be compelled to prove that all these contingencies have happened, before he can recover. But would it be fair to contend, that because the plaintiff was bound to prove these contingencies in addition to the note before he could recover, the note could not be within the act, and must itself be proved? Certainly not. It is therefore conceived by the court, that the endorsement of the appellants is a writing on which the action against them is founded, within the meaning of the act, and that the appellees having declared upon it, and not upon an existing debt or duty, of which they could adduce the endorsement as evidence, or other proof even by parol, the appellants ought not to have been permitted to require proof
It has, however, been urged, that the court ought to have given the instruction as in case of non-suit in the present case, because the notice as to Coons was sent to Winchester, instead of to Lexington, his own county town, where, by the course of the mail, he might have received it, had he attended at the office, far sooner than he could do by the circuitous mail to Winchester; and that as Coons is joined with others, if he is not liable, the appellees could not recover in this action against any, who were liable.
The doctrine is well settled, that, with regard to foreign bills of exchange, when they are dishonored and protested, due notice must be given to all the endorsers, whom the holder or holders mean to make responsible for the contents. The note, in the present instance, being discounted by the bank, is placed on the same footing with foreign bills of exchange, “so that the like remedy with like effect must be had for the recovery thereof.” The same doctrine, therefore, with regard to notice between holder and endorser, must apply, and is attached by statute to, the note so far as a similarity exists between the note and a bill of exchange. But however well settled this principle may be with regard to notice, it has some well founded exceptions, and notice is sometimes dispensed with for a considerable length of time, and the endorsers still are made liable. It is contended in the present case, that the ignorance of the cashier as to the residence of Coons, and the presumption arising of his residing near where the bill was dated, ought not to excuse the failure to send the notice for him to Lexington instead of to Winchester, where he, after a length of time, actually received it.
We have not thought it necessary to enquire and determine whether this notice was sufficient. For the note is payable to him as a joint payee with the rest of the endorsers, and he jointly with them endorsed it; and although they do not appear to be partners in trade, yet quo ad hoc they must be so considered, that is, as one person. It then clearly follows, that each will have the right to claim that the one, which was most accessible by mail, should receive the notice in due time, and if he did so, each one must be affected by the notice; and as Norton resided in Lexington, whither the mail was most direct and most frequent, his notice ought to be in due time to affect both himself and co
It has been long settled, that where notice goes by mail, it must go by the first mail after the last day of grace is over, on which day the bill or note must be presented and protested. The question then arises, was this done in the case before us, particularly as to Norton, whose residence was known, and whom the mail could soonest reach? That there exists a mail in the United States established by law, is a matter of law of which the court ought to take judicial notice. But whether this or that particular road, out of many roads which may exist, from this town to that in the country, is a post road, and what is the course and number of mails per week, or per month, from or to any particular town in the state, depends on the arrangements made from time to time by the post-office department, and is not incorporated into our code of laws, and is, therefore, matters of fact, and must be proved as such, before this court can notice them. In like manner it has been held, that what constitutes reasonable diligence in giving notices to the endorsers of bills, is matter of law to be decided by the court. But the speed in exercising this diligence, and the forwarding notices at all, and the means by which it is sent are matters of fact to be proved and found by a jury. In this case the proof is not very precise and minute as to the course and days of the mail from Washington to Lexington. It is stated that the mail passed three times per week. But whether on three successive days of that week, with a cessation on the other four days is not stated; or whether at regular intervals of one day intervening between each mail, (in which case two days must occur together at some period in the week, when there would be no mail,) the testimony is equally silent. Neither does it appear, whether the mails started from Washington in the evening or the morning, on any particular day. It is evident, that if the mail started on the morning of the tenth, it being the first day after the days of grace were over, it could have reached Lexington the same evening. Or the tenth and eleventh might have been the two days of the week, which came together without any mail, in which case it could not be reasonably expected that the notice would reach Norton sooner than the twelfth, on which it was actually deliv
But in examining the evidence adduced, and on which the motion as in case of a non suit was made, and comparing it with the declaration we discover a variance, which has not been noticed in argument at the bar. The declaration recites a note made by Dodge, to the four payees, and that they endorsed it to the plaintiffs, who discounted it at the instance of, and for the benefit of Dodge. But, the note produced, although it agrees in sum, date, maker, and payees, yet it is not endorsed by the payees to the plaintiffs below, but the endorsements read thus:
“Pay to the order of David Dodge,
(Signed)
SILAS W. ROBBINS,
JOHN WILKENSON,
JOHN COONS,
GEORGE NORTON."
“Pay to the President, Directors, and Company of the bank of Kentucky.
(Signed) DAVID DODGE.”
This is so palpable a variance from the note or rather endorsements alledged, that we conceive it must be fatal. The title of the plaintiff on a bill of exchange must proved as laid, and each endorsement by which the plaintiff’s title accrued, must in proof correspond with those laid in the declaration. We are aware that these endorsements are frequently left blank, and are filled up at the time of the trial, and that then in the hurry and pressure
The judgment of the court below must, therefore, be reversed with costs, and the cause remanded for new proceedings accordant with this opinion.
Absent, Judge Owsley.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.