Reese v. Bell

Citations

• 7 Cal. Unrep. 73
• 71 P. 87
• 1902 Cal. LEXIS 922

Syllabus

<p>Bills and Notes—Alteration by Inserting Interest.—In an Action on a note a defense was that the note had been altered by the insertion therein of writing calling for interest. The plaintiff in a verified complaint had alleged indorsement and transfer of the note by the payee to another for value before maturity, and a like indorsement by him to plaintiff. He testified that he had not received payment. Held, that such testimony tended to establish a prima facie case for plaintiff. On cross-examination of such witness defendant had a right to show by him facts which would dispute his testimony that the payee assigned the note to him before maturity to show why he had not received payment, and to dispute that the note had not been in his possession as testified by him.1</p> <p>Bills and Notes—Evidence.—Where, in a Suit on a Note, a Witness Testified that he had been attorney for the maker after the note was given and at the time certain indorsements were made by the payee, but that he was not the attorney for the payee, his testimony was not rendered incompetent because the payee subsequently testified that such witness was his attorney, the evidence being conflicting, and the court accepting that of the attorney.</p> <p>Bills and Notes—Doctrine of Relation.—Where the Payee of a Note made a mere equitable assignment thereof, and after maturity indorsed the same, the doctrine of relation would not apply to cut off the right of the makers to set up any defense good against the payee.</p> <p>Bills and Notes—Indorsement After Maturity.—Civil Code, section 3123, provides that an indorsee in due course is one who in the ordinary course of business and for value before its apparent maturity, and without knowledge of the dishonor, acquires a negotiable instrument duly indorsed to him or indorsed generally. Held, that, where a note was not duly indorsed to plaintiff before its apparent maturity, in an action thereon by him the maker might set up any equitable defense.2</p>