Schneider v. Mueller
Schneider v. Mueller
Opinion of the Court
The opinion of the court was delivered by
August Mueller, the plaintiff in error, challenges the correctness of the rulings of the trial court in permitting Frank Schneider, the plaintiff below, to recover a judgment against him, Mueller, in an action upon a promissory note for $640, payable three months after date, signed by Fred. Klophaus and Ann Klophaus, and endorsed in the manner following: Frank Schneider, August Mueller.
The proofs in the ease showed that the makers of. tíre note in 1900 employed Mueller, the defendant, who was a contractor, to build a house for them in Elizabeth, New Jersey, and that Mueller made a sub-contract with the plaintiff to do the mason work, and when the structure was completed there was due from the defendant to the plaintiff upon the subcontract $1,000. The plaintiff demanded this sum from the defendant, who, in turn, met this demand with the statement that Klophaus was short of money and could not pay then, and therefore requested the plaintiff to accept the note of Fred. Klophaus and his wife, which the plaintiff refused to do unless the defendant would endorse the note, which the defendant did, and thereupon it was accepted by the plaintiff and was subsequently discounted for him by the Union Trust Company and was renewed, from time to time, for less amounts, in the same form as the original one, by the same parties thereto, until the note ivas réduced to the sum sued upon, and when that became due it was protested and the plaintiff compelled to pay it.
The first ground relied upon by the defendant for a reversal of the judgment, is that the trial court should have ordered a nonsuit, moved for by the defendant, at the close of the plaintiff’s case, upon the basis that the declaration contained
The other ground unsuccessfully urged by the defendant for a nonsuit in the trial court and now urged here as a reason for a reversal of the judgment was, and is,"that the note in its inception was made before the passage of the Negotiable Instruments act (Pamph. L. 1902, p. 583), therefore it is not affected by the provisions of this statute, and, consequently, parol evidence was inadmissible to vary the contract between the endorsers as exhibited by the note itself, and that by the note no obligation to pay the plaintiff was assumed by the defendant when he endorsed it. This theory of the defendant" is untenable. The action is on a note made in 1909, and for a valuable consideration. Although it was a renewal oí a series of notes dating back to 1900, it was, nevertheless, in legal effect, a new transaction and comes clearly within the operation of the sixty-eighth section of he Negotiable Instruments act, which makes admissible parol testimony between several endorsers to show that they agreed to become liable otherwise than in the order iti which they endorsed the instrument. Wilson v. Hendee, 45 Vroom 640. The original note was given for an indebtedness from the defendant to the plaintiff; the form in which the note was made did not express the true nature of the transaction, but this much is clear that no vested right of the defendant would have been impinged upon, even if the transaction were considered as one existing before the Negotiable Instruments act, in having permitted the plaintiff to
The judgment should be affirmed.
For affirmance.—The Chancellor, Chief Justice, Garrison, Swayze, Trbnchard, Parker, Bergen, AYiorhees, Kalisch, Bogeet, A^redenbuegti, Congdon, White, JJ. 13.
For reversal—None.
Reference
- Full Case Name
- FRANK SCHNEIDER, IN ERROR v. AUGUST MUELLER, IN ERROR
- Status
- Published