Sinclair Refining Co. v. Rosier

Citations

• 104 Kan. 719
• 180 P. 807
• 1919 Kan. LEXIS 343

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Open Account- — Defense Not Defeated by Assignment. An assignee of a demand based on an open account for merchandise, takes it subject to any defense or demand the debtor may have against the assignor at the time of the assignment.</p> <p>2. Same — Oil-inspection Fees — Statute Invalid — Cross Demand for Fees Paid. Where a dealer in oil pays inspection fees imposed by the state on oil sold by him, protesting that the statute requiring payment is invalid, and who charges such fees to and collects the pay therefor from his customers, and who subsequently, when the invalidity of the statute has been judicially determined, collects from the state “the fees so unlawfully imposed, he becomes liable to a customer for the amount of the fees paid by the customer, who has a right of action against the dealer for their recovery, and who is entitled to set up his claim as against an indebtedness in the form of an open account owed by him to the dealer for oil purchased from the dealer, and the customer cannot be deprived of this right by the assignment of the account to another. When an action is brought by the assignee on the account, the customer may set up his cross demand for the fees paid, and the two demands will be deemed to be compensated so far as they equal each other.</p>