Shrader v. McDaniel

Citations

• 106 Kan. 755
• 189 P. 954
• 1920 Kan. LEXIS 647

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Promissory Note — Note Not Executed Under Duress. In an action on a promissory note, the evidence is held sufficient to sustain a finding against the defense that the note was executed under duress.</p> <p>2. Same — Note Given in Compromise arid. Settlement of Indebtedness— Valid Consideration. In order to increase the surplus of a state bank so that it might come within the provisions of the state guaranty law, the president and another stockholder, for no other consideration, gave their promissory note to the bank for $1,000, and with their consent the bank sold it to another bánk, taking credit in that bank for the amount of the note, and reported the deposit as a surplus and was admitted to the benefits of the guaranty law. Eighteen months later the president sold his stock, and at his request the cashier directed the bank holding the note to apply the deposit on the note, mark it paid, and return it to the makers. Afterwards, the cashier sold his stock and the bank was taken over by other parties and the facts with reference to the bank’s surplus were disclosed. Held, that the cashier acted without authority in having the deposit in the other bank applied upon the note and the note surrendered, and that there was a valid consideration for his subsequently giving a note in compromise and settlement of his liability to the bank by reason of the transaction.</p> <p>3. Same — Improper Question Submitted to Jury — Question of Law Not of Fact. In an action on a promissory note given by the cashier in settlement of his liability, under the facts stated in the above paragraph, the question whether the bank sustained a loss by the cancellation of the deposit was a question of law and not of fact, which should not have been submitted to the jury, and a finding by the jury that the bank sustained no loss by the transaction is contrary to the undisputed facts.</p> <p>4. Same —• Compromise and Settlement — Supported by Consideration. Whil