Bradley Engineering & Manufacturing Co. v. Heyburn

Citations

• 56 Wash. 628
• 106 P. 170
• 1910 Wash. LEXIS 860

Syllabus

<p>Bills and Notes — Accommodation Makers — Statutes—Construction. The negotiable instruments act was intended to change the law with reference to the liability of accommodation parties who-signed as joint makers of a promissory note.</p> <p>Same — Defenses—Statutes—Construction. Section 58 of the-negotiable instruments act (Laws 1899, p. 351), providing that a note in the hands of any holder other than a holder in due course is subject to the same defenses as if it were nonnegotiable, must be construed in connection with other sections of the act restricting the-defenses, and refers only to such defenses as are permitted by the act itself, or such as do not deny the tenor of the bill.</p> <p>Bills and Notes — Accommodation Maker — Discharge—Extension of Time of Debtor. Under the negotiable instruments act, Laws 1899, p. 346, § 29, defining an accommodation party as one who signed as maker and who is made liable notwithstanding notice to a holder for value, and § 60, providing that the maker engages to pay it according to its tenor, and § 192 defining a person “primarily” liable as one who is absolutely required to pay, an accommodation maker of a note is not discharged by an extension of time to the-principal debtor, and therefore cannot show by parol that he signed only as surety.</p> <p>Same — Holders for Value and in Due Course. Under the negotiable instruments act, a holder for value and a holder in due course-are in the same position to challenge any defense based upon a. collateral agreement or upon equities existing between the makers-by holding up the instrument itself.</p> <p>Judgment — Bar—Parties Concluded — Joint Debtor Beyond Jurisdiction. An unsatisfied judgment in another state against one of two joint makers of a note does not bar another action on the note in this state against the other maker who was beyond the jurisdiction and not a party to the other suit.</p> <p>Mortgages — Bills and Notes — Security—Application. Under-the negotiable instrument