Nolan v. Brown
Nolan v. Brown
Opinion of the Court
Louis M. White, appellant herein, is one of two defendants-against whom Judgment of the Court below was rendered ^.n favor of plaintiff, holder and owner of nine certain promissory notes described in plaintiff's petition. There is no dispute as to the facts of this ease, which are briefly, a3 follows:
The notes sued upon, and of which the plaintiff, Frank J. Holán is holder and owner for value, were all dated at Hew Orleans, June 18, 1919, each for the sum of $131.83, with 8% interest thereon from maturity until paid. The said notes being made by Owen W. Brown, to his own order and by himself indorsed, all of said.notes being also indorsed by Louis M. White, the said notes maturing respectively October IB, Hovember 15, December 15, 1919, and January 15, February 15, April 15, May 15, and June 15, 1920.
To the suit herein filed on these notes. White pleads discharge from his obligations on the grounds that he had no notice of dishonor. It appears that Holán originally held another series of nine notes each for $40.00, also given by Brown, the maker, and endorsed by White as surety. All of this series of notes having fallen due and being about to become prescribed in the order of their maturity, were placed in the hands of Holán, attorney for collection on or about October 13, 1919. The attorney wrote to the maker and endorser informing both of them that the notes were nearing prescription, and unless settlement was made would be sued upon. This demand brought Brown and White to the attorney's office on the second or third day after written notice had been received by them, and both of these parties to the old series then and there signed and endorsed an entirely new series of notes as above described and upon which this suit is predicated. Attorney Wolff's testimony shows that both Brovin and White handed him the said notes for account of Holán, and at the same time handed Wolff a memorandum slip in the handwriting of Holán, whom they had Just seen, reading as follows:
"Hiñe note3 - $40.00 each dated June 19, 1914.(360) Interest on $360.00 from June 19, 1915 to June 19, 1920 - 5 years at 4% per annum. Principal-'an3 Interest cash to~~be paid. Balance due to be settled by 12 new notes of"lf31.83 each dated June 19/19 payable monthly."
It does not appear from the evidence that the series of notes sued upon were ever protested or notice of dishonor thereof given to the endorser, White. It i3 not denied that White, endorsed all of the nine notes sued upon, nor that he was a party to the agreement made in Wolff's office when the original series was substituted by the new series of notes referred to.
The facts of this case being clear, the only question involved in one of law, that is, whether or not the endorser, Louis M. White, is liable in solido with the mater. To the
Plaintiff applied for rehearing which was granted, and he was also allowed to file an amended and supplemental petition. To both the petition and supplemental petition, the defendant, White, again urged the same exception of no cause of aotion, which exception seems to have been referred to the merits of the case and on final hearing both exceptions were overruled, and judgment for plaintiff as prayed for was rendered. Defendant pleads a discharge from liability upon the ground that no notice of dishonor was served upon him, as required,under Sec. 70 and 89 of the Negotiable Instruments law, Act NO. 64 of 1904. The following sections of the Negotiable Instruments Act should be noted, to wit:
"Sec. 109. Notice of dishonor may be waived, either before the time of giving notice has arrived, or after the omission to give due notice, and the waiver may be express or IMPLIED.
"Sec. 114. Notice of dishonor is not required to be given to an indorser in either of the following cases:-
1. Where the drawee is a fictitious person or a person not having capacity to contract, and the indorser was aware of the fact at the time he indorsed the instrument;
2. Where the indorser is the person to whom the instrument is presented for payment;
3. WHERE THE INSTRUMENT WAS MADE OR ACCEPTED FOR HIS ACCOMMODATION."
The learned judge of the Lower Court has, in our opinion, taken a correct view of the law applicable to this case and nothing need be added to his opinion forming part of this record. There can be no doubt that the second series of notes given herein were intended to avoid a threatened lawsuit upon a former or original series of notes, and that both the maker and the endorser were in this respect peculiarly
It ia urged in defendant's brief that it was error of l'aw for the Trial Court to allow the filing of a supplemental petition after judgment rendered on the main petition. There might be some merit in this oontention except for the fact that the record shows that after a re-hearing granted, counsel for defendant accepted service to the amended and supplemented petition four days before same was presented to the Court, and leave granted by the Court for the filing thereof, thus showing acquiescence in the proposed method of procedure.
We find no error in the ruling of the lower Court.
Judgment affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.