People's Bank of Minneapolis v. Reid

Citations

• 86 Kan. 245
• 120 P. 339
• 1912 Kan. LEXIS 267

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Contract — Fraud—Evidence. When it is alleged that a contract to supply water for irrigation and to purchase for the grantee certain land was fraudulent and not carried out by the grantor it is competent to show that the same party made similar but -not identical contracts with' other grantees about the same time which were not carried out, as tending to show system, motive or intent.</p> <p>2. Negotiable Instrument — What Constitutes Notice of Infirmity. Before the holder of a promissory note negotiated to him in due course before maturity can be charged with notice of an infirmity therein or defect in the title of the party negotiating it, he must be shown to have had actual knowledge of the infirmity or defect, or knowledge of such facts that his action in taking the instrument amounted to bad faith. An instruction which modifies this rule by charging that this knowledge means “such knowledge of facts as a reasonable prudent and cautious person in the exercise of ordinary care and prudence in the ordinary affairs of life would or should acquire in the transaction of such business,” held, error.</p> <p>3. -Action by Endorsee — Fraud — Evidence. When, in an action by the endorsee of a promissory note to recover thereon, it is contended by the maker that it was procured by fraud, and the trial court directs the jury as to the degree of proof required and the meaning of the term “preponderance of evidence,” they should be charged that the burden is upon the máker to show such fraud by clear, decided and satisfactory evidence. An instruction in such a case that a bare preponderance is sufficient, held, error.</p>