Illinois Title & Trust Co. v. McCoy

Citations

• 86 Kan. 588
• 121 P. 1090
• 1912 Kan. LEXIS 348

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. PROMISSORY Note — Patent Right — Collateral Security — Consideration. On motion of the defendant in an action brought by an indorsee of two promissory notes against the maker thereof the payee of the notes was made a party and filed an answer that the notes sued upon had been transferred by him to the plaintiff as collateral security for his own notes, which had been obtained from him without consideration and through fraud upon false representations upon a pretended sale of a right under letters patent. The court submitted to the jury the question whether the principal notes were given without consideration, and directed that if the jury so found the verdict should be for the intervenor for the amount due upon the collateral notes, otherwise that the verdict for the same amount should he for the plaintiff, and instructed the jury (as the fact was), that there was no evidence of any fraudulent representations respecting the patent right. It was shown that the right had been conveyed as agreed in consideration for the .principal notes, and there was no evidence that it was invalid or worthless. It is held that a verdict and judgment for the intervenor for the amount of the collateral notes sued upon can not be sustained.</p> <p>2. Judgment^ — On Principal Notes — Conclusive as to Collateral. A suit was commenced in Illinois, where the three notes given for the patent right above referred to were made payable, in a court of competent jurisdiction, by the payee thereof, for the amount due upon two of them which had not been transferred, and also for the amount due upon the other note which had been returned to the payee by the indorsee thereof for collection and accounting of the proceeds, and which was secured by the endorsement and transfer of the collateral notes sued upon in this action. A judgment was duly rendered in that action against the maker of the principal notes for the full amount thereof. These are the same notes alleg