Clark v. Porter
Clark v. Porter
Opinion of the Court
This suit is to recover upon two notes each for $500, and dated May 1, 1891, due respectively in eighteen and twenty-four months after date. The notes are fac similies, except as to date and maturity, of the one set out in Clark v. Barnes, 58 Mo. App. 667. The evidence in that case and the one at bar does not differ materially except as to that adduced in support of an additional defense interposed in this ease to those made in the former, which additional defense is made by pleading and proving the following act of the legislature of Arkansas, passed April 9, 1891:
“Section 492. Nothing in the preceding section shall apply to a bill of exchange or negotiable note, transferred in good faith and for value before maturity, but such instrument shall be governed by the rules of the law merchant concerning commercial and negotiable paper. Provided, the payer and drawer in all notes, drafts and bills of exchange executed or drawn in payment of any patent right or patent right territory shall be permitted to make all defenses against any assignee, indorser, holder or purchaser of such note, draft or bill of exchange that could have been made
“Section 493. Any vendor of any patent right machine, implement, substance or instrument of any kind, or character whatsoever, when the said vendor of the same effects the sale of the same to any citizen of this state on a credit, and takes any character of negotiable instrument, in payment of the same, the said negotiable instrument shall be executed on a printed form, and show upon its face that it was executed in consideration of a patent machine, implement, substance or instrument, as the ease may be, and no person shall be considered an innocent holder of the same, though he may have given value for the same before maturity, and the maker thereof may make defense to the collection of the same in the hands of any holder of said negotiable instrument, and all of such notes not showing on their face for what they were given shall be absolutely void.”
Defendant further' alleges that the notes in suit were given for the purchase of a patent right and certain patent right ..territory, and were purchased by fraudulent and false statements. The reply took issue and averred that the notes were given not for a patent right or patent right territory, but in consideration of a compromise of certain business matters between defendant and plaintiff’s assignor, the original payee of the notes. There was a judgment for plaintiff, and defendant appealed.
If the consideration of the original notes shown by the evidence to have been exchanged for those in suit was the only consideration of the notes in suit, then the Arkansas statute, passed April 9, 1891, rendering notes given for patent right or patent right territory open to all defenses which the payer might make
Case-law data current through December 31, 2025. Source: CourtListener bulk data.