Harrison v. Pike Bros. & Co.

Citations

• 48 Miss. 46

Syllabus

<p>1. Promissory notes — indorsements—law merchant. — By the law merchant, the indorser of a promissory note or bill of exchange, who has paid a consideration for it, takes it freed from any equities existing between the antecedent parties. But our statute (Code of 1857, p. 355, art. 2,) allows the drawer, as against the indorser, the benefit of all want of lawful consideration, failure of consideration, payments, discounts, and sets-off prior to notice of the assignment. This innovation applies only to domestic negotiable paper, and not to paper made payable beyond the limits of this state. In the latter case the law of the place where performance is to be made aj.>plics.</p> <p>2. Same — indorsements—presumptions.—The holder of negotiable paper indorsed to him is presumed to have a bona jide title to, and to have paid value for it, and the burden of showing to the contrary is upon him who sets up defenses against it. In such case if the note be payable in Louisiana, the laws of that state must govern the recovery on it, and defenses against it.</p> <p>3. Same — defenses.—The defendant to a bill of foreclosure will not be allowed to set up by cross-bill an allegation that the notes which the mortgage was given to secure were improperly made payable to one of two co-partners, and that the payee has otherwise misappropriated assets of the firm to his own use, to such a degree that he is debtor to his late partner. In such case he should have made the absent partner a party, put himself in the condition of a stakeholder, and compelled the parties in interest to litigate for the amount of the notes.</p> <p>4. Practice — equity.—Courts of equity will not aid debtors in that sort of litigation which tends only to delay and to multiply suits.</p> <p>5. Equity — set-off—assignment—parties.—Where the payee of a foreign bill of exchange or promissory note assigns it as collateral security to one of his creditors, the defendant to a suit on it by the assignees cannot plead a