Randle v. Davis Coal & Coke Co.
Randle v. Davis Coal & Coke Co.
Opinion of the Court
delivered the opinion of the Court:
This appeal is from a judgment on a promissory note rendered by the court below, for want of sufficient affidavit of defense, under rule 73 of that court.
The action was by the Davis Coal and Coke Company, the payee of the note, against the Capital Railway Company and the appellant, Arthur E. Randle; the declaration, in some of its counts, proceeding against the parties as joint makers of the note, and in others as maker and indorser of the note; this latter joinder being authorized by statute. The usual affidavit, on the part of the plaintiff, was filed with the declaration.
The defendant, the present appellant, pleaded to the declaration, that he did not promise in manner and form as alleged. And he filed an affidavit, in support of his defense, under rule 73, which requires “ that the defendant shall file, along with his plea, if in bar, an affidavit of defense, denying the right of the plaintiff as to the whole, or some specific part of his claim, and specifically stating also in precise and distinct terms, the grounds of defense, which must be such as would, if true, be sufficient to defeat the plaintiff’s claim in whole or in part.”
The affidavit of the appellant, stating the defense relied on, under rule 73, states : “ That he is indorser on the note sued upon without any consideration for said indorsement; hat the original note, of which the present note is a renewal, as made in closing the account of the plaintiff with the
The note sued on, dated November 16, 1898, payable three months after date, is a renewal of a former note, given for value received, and upon the back of which is indorsed the name of the appellant Kandle, who was at the time the president of the Capital Kailway Company, the other defendant, against whom judgment was allowed to be entered without defense.
Prima facie, upon the statement of the facts as set forth in the affidavits, the indorsement by the defendant in blank upon the back of the note before delivery to the payee, made the former a joint maker of the note. Rey v. Simpson, 22 How. 341, 350 ; Good v. Martin, 95 U. S. 91.
But if we treat the blank indorsement on the note as the contract of an indorser, as contended by the appellant it should be treated, and not as the contract of a joint maker, according to the prima facie import of the blank indorsement under the fact stated, still, the law is well settled, that parol evidence of a contemporaneous agreement that the
There is, however, a well drawn distinction between the case where an instrument not under seal, as a promissory note or other negotiable instrument, has been made or indorsed and delivered on condition which has not been fulfilled, and the case where such instrument has been delivered without such condition. In the case of a conditional
“ The error was in applying to the case the familiar and well established rule that parol evidence is inadmissible to contradict or vary a written contract. A written contract must be in force as a binding obligation to make it subject to this rule. Such a contract can not become a binding obligation until it has been delivered. Its delivery may be absolute or conditional. If the latter, then it does not become a binding obligation until the condition upon which its delivery depends has been fulfilled. If the payee of a note has it in his possession, that fact would be prima facie evidence that it had been delivered; but it would be only prima facie evidence. The fact could be shown to be otherwise and by parol evidence. Such parol evidence does not contradict the note or seek to vary its terms. It merely goes to the point of its non-delivery. The note in its terms is precisely what both the maker and the payee intended it to be. No one desires to vary its terms or to contradict them.”
The same principle is clearly laid down in the English case of Pym v. Campbell, 6 El. & Bl. 370, 371, also fully stated and quoted from with approval by the Supreme Court, in Burke v. Dulaney, supra.
The judgment must be affirmed; and it is so ordered.
Judgment affirmed.
Reference
- Full Case Name
- RANDLE v. DAVIS COAL AND COKE COMPANY
- Status
- Published
- Syllabus
- Promissory Notes; Irregular Indorsement; Seventy-third Rule. 1. In a suit -by the payee of a promissory note against the maker and an indorser in blank on the back thereof, an affidavit of defense by the latter is insufficient, which states that the indorsement was without consideration; that the original note, of which the note sued on is a renewal, was made in closing the account of the plaintiff with the maker; that the consideration therefor was coal which had been sold and delivered by the plaintiff to the maker prior to the making of the note; that the affiant’s indorsement was at the request of the plaintiff without any consideration moving from the maker or to the plaintiff, the plaintiff agreeing that if affiant would place his name on the note, the maker was thereafter to have coal at the usual rates and not at credit prices, which the maker had been paying, and that the coal was to be of the better quality; but that the plaintiff wholly disregarded said agreement and would not sell coal to the maker as agreed upon; and that affiant was a mere indorser upon the note. 2. In such a case, upon the facts as stated, the indorsement in blank on the back of the note is prima facie that of a joint maker and not that of an indorser. 3. Parol evidence of a contemporaneous agreement that an indorsement on a promissory note was without recourse, is inadmissible.