Fowls v. Outcalt

Citations

• 64 Kan. 352
• 67 P. 889

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Promissory Note — Payment to Payee — Knowledge and Conduct of Indorsee. Where the holder of a promissory note has for years authorized and ratified the reception of interest payments thereon by the payee named in the note, without having the coupons representing such interest in his possession at the time of receiving the money; and where such holder is chargeable with knowledge that during the period covered by such interest payments such payee had held himself out as the owner of said note to those obligated to pay the same, and is still so holding himself out to such interested parties, who are deceived thereby; and where such holder has notice that at the maturity of the note such payee will, pursuant to his usual course of business, without revealing the facts as to ownership, receive the amount of principal due on such note, it is the duty of such holder, if he desires a change in the methods which have been theretofore and are thereafter likely to be pursued, to notify those who are bound to pay it that he is the owner of the note and that future payments may not be made to such payee, and if such holder fails so to do he will be held bound by a payment made in good faith of such note at the place of payment designated therein and to such payee.</p> <p>2. - General Buie as to Payment — Exceptions. Ordinarily one bound to pay a negotiable promissory note is not protected if he pay it to the payee thereof and at the place of payment named in the note without the production of the paper by the person receiving the money, but to this rule there are exceptions, and under the facts in this case the decision of the trial court that the rights of the owner of the note in controversy in this action are concluded by such a payment will not be disturbed.</p>