88 Va. 1001 | Va. | 1892
delivered the opinion of the court.
The defendant in error, A. C. Tinsley, on the 3rd day'of October, 1888, at Danville, Ya., made his negotiable note at four months for $3,500, payable to Elizá R. Lee or order, without offset, at the Commercial Bank, of Danville, Ya. Eliza R. Lee indorsed this note, and delivered it to the drawer, to be discounted at bank, to enable him to carry on the mercantile business in the store-house rented by him of the said Lee. Tinsley took this note to the bank to be discounted, but the bank could not or did not discount it. Tinsley borrowed $630.62 of the bank, and left the note as collateral. He bought goods from certain parties, who are plaintiffs in error, through Berkeley & Harrison, who trusted him upon his expectation of getting this note discounted, and out of the proceeds paying them for their goods. Heither they nor the bank nor any other person ever discounted the note. It was never negotiated, and never passed into the hands of third parties for value wdthout notice. The drawer sought to have the note discounted, and tried to employ lawyers to get it done, that he might get the money on it; but, although Mrs. E. R. Lee was a solvent person, nobody could be found who would take the note and pay the money for it. The creditors of the drawer claimed only a promise by Tinsley, the drawer, to pay them out of the proceeds of the note when discounted. In the meantime Mrs. Lee, who was a purely accommodation endorser, having married .the defendant in error, Buntin, and. having learned the insolvency of Tinsley, the drawer, or for reasons satisfactory to herself, sought to withdraw her indorsement, and so notified
There is no dispute about the material facts of the case. Counsel state them in a different order, to illustrate their view of the law, but the same facts are relied on by each side to the controversy. The first cpiestion of law which arises here is as to the effect of the withdrawal of the indorser before discount, or the negotiation of the note in the hands of third parties for value without notice. This is not what is termed “ business paper ” with successive indorsers, but accommodation paper offered by the maker for discount for his benefit; and the indorser is bound as his surety so far as his indorsement binds him as such, and so long as this indorsement binds him. It is a general principle that an indorser of an accommodation
Judgment .affirmed.