Kirby v. Berguin
Kirby v. Berguin
Opinion of the Court
This is an action by the plaintiff as 'an indorsee
The defendant, in paragraph 3 of his answer, alleged that his signature to the note sued on in this action was extorted from him by means of a fraudulent scheme, combination, and conspiracy on the part of William Barker, W. Bencliffe, C. Schott, and William Cross to secure the signature of the defendant to said note for the purpose of disposing of the same to an innocent purchaser, and thereby defraud the defendant out of the amount of said note, and that in pursuance of such, fraudulent combination, scheme, and conspiracy, the party calling himself William Cross called at the home of the defendant and solicited from him an order for lightning rods to be placed on defendant’s buildings, and which order the said Cross represented to the defendant was for the sum of $20, the amount for which said Cross agreed to furnish said rods to the defendant; that on,the following day, while the defendant was absent from home, Bencliffe and Schott, in pursuance of said fraudulent scheme and conspiracy, came to the defendant’s premises and erected lightning rods on the same; that on the day following, for the purpose of further carrying out said fraudulent scheme and conspiracy, the said Bencliffe and Schott returned to the home of the defendant, and fraudulently claimed that there was due on the order for said lightning rods $187, and represented to the defendant, falsely and fraudulently, that the order he had given for said rods was negotiable, and threatened the defendant that if he did not settle said claim, and give his note therefor, they would sell and transfer said order to an innocent person, who would sue and collect the full amount of the same, but, in order to settle said claim, they stated
There are a number of errors assigned, but they may be grouped under three heads: First, errors of the court in the admission of evidence; second, errors of the court in its charge to the jury; third, irregularity in the proceedings of the court and jury, by which plaintiff was prevented from having a fair trial.
On the trial the defendant, called as a witness in his-own behalf, testified at considerable length to the conversation between himself and the parties mentioned in the answer, and the representations made by them, resulting in the giving of the note sued on in this action. The evidence so given tended to prove substantially the facts set up in the answer, but somewhat more in detail. This evidence was admitted over the objections of the plaintiff that the same was inadmissible for the reason that the order itself was not in evidence, and also because the same was incompetent, irrelevant, and immaterial. The appellant further contends that this evidence was inadmissible as it tended to vary the terms of a written contract. This contention is untenable, for the reason that the written contract or order given for these lightning rods is. not before us, as it was not introduced in evidence by either party, and, for the purpose of proving that the note was obtained from him by fraud, it was competent for the defendant to show all the transactions be
It is contended on the part of the plaintiff that as he was a purchaser of the note in controversy before its maturity, for value, he was protected against the defense interposed by the defendant. But this court has held, following what it deems to be the weight of authority, that, where a negotiable instrument is shown to
It is further contended on the part of the appellant that, if the original transaction between the defendant and Barker or Cross was tainted with fraud, the transaction was subsequently compromised by the parties, and the note in controversy was given as a result of that compromise, and hence the defendant cannot avail himself of the original fraud. But we cannot agree with the counsel in this contention. In our opinion the jury were fully justified in finding that the procuring of the note was a part of the fraudulent scheme intended by the parties in the inception of the transaction. The note was but the conclusion of the original fraudulent conspiracy. The note was given to C. Schott as payee, and seems to have been indorsed in Schott’s name by Bencliffe, and was transferred to the plaintiff by William Barker. The evidence tends- to prove that Barker took the order, representing himeslf as Cross; that Bencliffe and Schott performed the work, and secured the note to be given to Schott as payee, and that Bencliffe signed Schott’s name to the note as indorser, with Schott’s consent; and
The plaintiff further contends that the court erred in the following portion of its charge to the jury: “If the jury further believe from the evidence that he [the plaintiff] had no notice of the special defense now set up by the defendant, and had no reason to
As before stated, the motion for a new trial was also made upon the ground of irregularity in the proceedings of the court, in that it omitted to charge the jury in writing, as requested by the plaintiff, and in that, subsequently to the retirement of the jury to delib
It is further contended on the- part of the appellant that the proceedings were irregular, in that the counsel for the defendant made remarks to the jury that were prejudicial to the plaintiff; but this contention is untenable. It seems that, in the course of the ar
There are several other assignments of error, but, as they have not been argued by counsel, we shall assume that they were waived.
Finding no error in the record of the court below, the judgment of the circuit court and the order denying a new trial are affirmed.
Reference
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- 1. An objection to testimony on the ground that it contradicts and varies the terms of a written instrument is unavailable where the instrument itself is not in evidence. 1 1. In an action on a note, it appeared that a lightning-rod dealer, acting under an assumed name, procured defendant’s signature to an order for rods, representing that they would cost only $20. Subsequently, in defendant’s absence, two of the dealer’s employes put up the rods; and next day they returned with what they claimed to he defendant’s order, and by representing that the order was for $187, and was negotiable, and that they would negotiate it, so that defendant would have to pay the full amount, unless he did as they directed, they procured his signature to a note for $140 — the note in suit— which the dealer transferred to plaintiff. Held, that the evidence of the circumstances leading up to the execution of the note was admissible to show a fraudulent conspiracy between the lightning-rod dealer and his employes to obtain defendant’s signature to the note. :3. .The evidence was sufficient to sustain a finding of the jury that the . note was procured by a fraudulent scheme, beginning with the first solicitation of the order for the lightning rods. 4. Where a negotiable instrument is shown to have been obtained by fraud or duress, the burden is on a subsequent holder to show that he was a bona fide purchaser for value, without notice. 5. Where a note was executed in compromise of a merchandise order ■ which was obtained by fraud, and which was a part of a fraudulent scheme to secure the note — the maker’s signature to the note being obtained by threats of forcing him tó pay the full amount of the order — the execution of the note was not a waiver of the right to set up the fraud as a defense against the obligation represented by the note. ■6._ In an action on a negotiable note, it appeared that a lightning-rod dealer, through a conspiracy with two of his employes, obtained a fraudulent order for rods from defendant, and then, pursuant to the same scheme, procured the note sued on in settlement of the order. The note was payable to one of the employes and was transferred by the dealer to plaintiff, who had known the dealer for ten years, and had collected many of his lightning-rod bills. Held, sufficient to justify an instruction that if plaintiff had no notice of the fraud relied on by defendant, and “had no reason to suspect it,” he was not chargeable with notice thereof. 7. The evidence was sufficient to sustain a finding by the jury that plaintiff was not a bona fide purchaser. 8. At the close of the evidence in a civil action, plaintiff requested the court to put its charge in writing, and sent it out to the jury upon their retirement. The court, however, charged the jury orally, no objection being taken until the charge was finished when plaintiff excepted to the charge not. being in writing; and thereupon the court directed the reporter to transcribe the charge into Ibnghand, and to deliver it to the bailiff having the jury in charge, no objection being taken to such direction. The reporter asked plaintiff if he really wished the jury to have the charge in writing, and, on being told “Yes,” wrote it out and delivered it to the bailiff. Held, that plaintiff being presumed to have heard the court’s direction to the reporter and having assented to the reporter’s delivering the charge to the bailiff, there was a waiver by plaintiff of objection to the irk regularity of the proceedings. 9. In an action by the assignee of a note against the maker, •,wherein the defense was that the note was procured from defendant by plaintiff’s assignor in settlement of an order for lightning rods fraudulently procured by such assignor from defendant, defendant’s counsel, in his argument to the jury, stated that he had read in a paper the plaintiff had a large number of houses, but that he ’did not believe he had any of his assignor’s lightning rods on them. Held, that the remarks did not transcend the licence allowed attorneys in their arguments to the jury.