San Roman v. de la Serna

Citations

• 40 Tex. 306

Syllabus

<p>.1. An instrument as follows :</p> <p>“Brownsville, March 16, 1870.</p> <p>“The hearer hereof, Mr. Wm. Scanlan, is going through those parts with the object of purchasing mule stock. He leaves deposited in my .hands the sum of eleven thousand one hundred ($11,100) dollars, which .sum I hold subject to his order.</p> <p>“Joseph San Roman.”</p> <p>Held to he in effect a letter of credit, upon which suit may be brought against San Roman as an acceptor, of a draft drawn by Scanlan on him.</p> <p>12. See case where the maxim “Who trusts most must suffer most” applies.</p> <p>On Rehearing.</p> <p>S. A motion to dismiss for want of an error bond, under Article 1517, Paschal’s Digest, where a supersedeas bond appeared in the record, overruled. That article does not require a cost bond where a supersedeas bond has been given.</p> <p>4. Held, that the paper is a special contract, and not negotiable.</p> <p>5. .Letters of credit are special contracts, not to he treated as negotiable in tiie full sense and proper meaning of that term, nor to be construed as actual acceptances of bills or orders drawn under them, hut rather as agreements to accept such as may be.drawn in good faith and within the limits of the credit or deposit specified.</p> <p>6. The exclusion by the court of evidence that the depositor had withdrawn his deposit upon which said paper was given, was error; so was it erroneous to instruct the jury that the possession of said paper was conclusive evidence of the drawer having money on which' he had authority to draw, unless it appeared from the evidence that the deposit had been previously withdrawn.</p>