DocketNumber: Nos. 17,432—(166)
Citation Numbers: 116 Minn. 422
Judges: Bunn
Filed Date: 1/5/1912
Status: Precedential
Modified Date: 9/9/2022
This action was brought to recover on a note signed by defendants, payable to McLaughlin Brothers, of Columbus, Ohio. The note was
The only question before us is whether there is evidence sufficient to sustain the verdict. If it conclusively appeared that plaintiff received the note in good faith as collateral security for an indebtedness of McLaughlin Bros., in the usual course of business and without notice of defenses, and that the indebtedness still existed, plaintiff is entitled to a new trial. But the fraud and want of consideration being established by the stipulation, the burden was upon plaintiff to prove that it was a bona fide holder for value. Unless the evidence was such that different inferences could not be drawn by reasonable men, the question was for the jury.
We have examined the evidence, and reach the conclusion that the verdict should be sustained.' The cashier of plaintiff testified, in substance, that the note in question with many others was given plaintiff as collateral security for an indebtedness of $20,000. All of this indebtedness except about $1,100 was paid, and all the collateral surrendered except the note involved here, which in the meantime had become long past due. Taking into consideration the doubt as to whether the indebtedness for which the note was collateral had not been wholly paid, the over-looking of this particular note, and the failure to notify McLaughlin Bros, of the nonpayment of interest or principal, the long course of dealing in these stallion notes by plaintiff bank, involving suits brought to collect some of them, the failure to make any inquiry as to the makers of the note, its consideration, or the payments indorsed thereon, we cannot say that the jury was bound to find the plaintiff acted in good faith, or that the indebtedness for which the note was collateral had not been paid.
Order affirmed.
[Note] Holder of bill or note as collateral security as a bona fide holder, see note in 31 L.R.A. (N.S.) 287.