Taylor v. Trussell
Taylor v. Trussell
Opinion of the Court
Appellant, J. J. Taylor, instituted this suit in the district court of Childress county upon a promissory note for $1,666, executed by appellees E. E. and W. L. Trussell and Frank Glover, payable to the order of Mac D. Bybee. The defense, so far as necessary to notice, was fraud in the execution and transfer of the note, and an entire failure of consideration, with alleged notice to appellant, to whom the note had been assigned by Mac D. Bybee before its maturity. A jury trial resulted in a verdict and judgment in favor of the makers of the note.
"While the surrender of appellant’s note perhaps constitutes a consideration on appellant’s part for the purchase of the note in controversy (Blum v. Loggins, 53 Tex. 136; Herman v. Gunter, 83 Tex. 66, 18 S. W. 428, 29 Am. St. Rep. 632), yet it is not without weight that its value was not shown, that no money was in fact paid, and that there was no explanation of the further fact that appellant took the precaution to make his check payable only after the collection of the note he received from Bybee; and these facts, together with appellant’s failure to testify or give any explanation, it seems to us, tend strongly to show that Taylor knew at the time he received the note in controversy that there was some vice therein. The circumstances adverted to at least called for explanation, and seem to shift the burden of proof upon appellant to show that he was without notice of the fraud and failure of consideration pleaded. See the case of Prouty v. Musquiz, 94 Tex. 87, 58 S. W. 721, and its correction, page 996 of the same volume (58 S. W.). In speaking of the note there under consideration and as against which there was a plea of failure of consideration, our Supreme Court finally say: “If the note was procured by fraud, and if the plaintiff proved that Mrs. Eagar paid value for the note before its maturity, and if there were no facts in evidence tending to show bad faith in the transaction upon her part, or.if the defense arose after the execution of the note, then, in either event, the burden was upon the defendant to show that she’ had notice of the defense.” The necessary implication from this decision is that in cases where, as here, there is fraud in the inception of the note, and there are circumstances in evidence tending to show bad faith in the acquisition of the note by an assignee who sues thereon, that the burden then devolved upon him, instead of the defendant, to show that he had no notice of the defense, notwithstanding he may have acquired it before maturity, and paid something of value therefor,
In view of the conclusions above noted, we find no reversible error in the court’s charge, nor in his action in refusing special charges. The evidence of appellees to the effect that at the time of the execution of the note Bybee agreed that it should not be transferred, and that it might be paid with the proceeds of sales of the crude oil contracts, was relevant, we think, to the issue of fraud in the inception of the note in controversy; and the evidence of W. L. Trussed of what occurred between himself and Jackson, the manager of the Crude Oil Burner Company, was admissible as showing the failure of consideration pleaded. Appellant’s objections', therefore, to the evidence indicated were properly overruled.
We find no reversible error as assigned, and the judgment is accordingly affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.