National Bank v. Baltimore & Ohio Railroad

Citations

• 99 Md. 661

Syllabus

<p>Rights of Assignee of Non-Negotiable Bill of Lading — Purchase in Good Faith From Party Who Obtained the Goods by Fraud — Evidence — Instructions,</p> <p>When there is no evidence to the contrary it will be presumed that the common law prevails in another State of the Union.</p> <p>At common law a bill of lading was a negotiable instrument in only a qualified decree, and even that negotiability could be taken away by writing upon the face of the instrument the words “Not negotiable.”</p> <p>A non-negotiable bill of lading may be assigned like any other chose in action, and the assignee takes it, and the property represented by it, subject to the equities between the original parties of which he has notice.</p> <p>A bill of lading represents the goods described in it and the indorsement and delivery of the bill by the holder to a bona fide purchaser for value divests the lien of the seller against the holder for the price, and his right, upon rescinding the sale for fraud, to retake the property.</p> <p>When the buyer of goods on credit obtains possession and ships them by a common carrier, receiving a non-negotiable bill of lading to his order the party to whom he transfers that bill of lading, who takes the same bona fide and for value, acquires a valid title to the goods although the buyer may have obtained them by fraud or shipped them in violation of his agreement with the seller, since the bill of lading represents the property described in it.</p> <p>A sold and delivered a quantity of lumber in Virginia to DeC who loaded it on a car. A alleged that the agreement was that the lumber was to remain his property until a post dated check on a bank at another place which DeC gave for it was paid. DeC shipped the car and received a bill of lading, marked across its face “non-negotiable‘” in his own name. He then obtained from the plaintiff bank the discount of the draft on a party in Baltimore, with the bill of lading attached thereto as collateral and endorsed by