24 Pa. Super. 567 | Pa. Super. Ct. | 1904
Opinion by
The appellee and Samuel Daggy gave their promissory note to the plaintiff. The note is regular in form and recites a valuable consideration, and both of the signers appear as makers. There is therefore a clear prima facie liability. The appellee seeks to Avoid payment on the allegation that he was an accommodation maker; that he signed the note at the request of the plaintiff and for her accommodation, and that no consideration was paid him by her for such signing. It is not alleged that no consideration passed from the plaintiff to either of the makers, or that the appellee did not sign the note at the request of Daggy, or that he signed it solely at the request of the plaintiff in order that she might negotiate the note to third parties. An accommodation note is a loan of the credit of the maker to the payee. It does not follow, because the appellee signed the note at the request of the plaintiff and that no consideration was paid to him for so doing, that no liability arises. In very many instances notes are signed at the request of the payees by persons who do not receive the money thereon, but who sign to give additional credit to the real principal, the consideration passing from the payee to the principal debtor, the credit so given being a sufficient consideration for the signatures of all the makers. The 29th section of the Act of May 16,1901, P. L. 194, declares that “ an accommodation party is one who has signed the instrument as maker, drawer, acceptor, or indorser without receiving value therefor, and for the purpose of lending his name to some other person. Such a person is liable on the instrument to a holder for value, notwithstanding such holder at the time of taking the instrument knew him to be only an accommodation party.” If it was the understanding of the parties to the note that the appellee only signed for the purpose of lending his credit to the payee, and that his relation to the note was as an accommodation maker solely, that fact should have been specifically set forth to meet the clear presumption arising from the note itself. The note was executed by the appellee as a maker, and the rights and liabilities of the parties
The provision of section 28 of the act that “ absence or failure of consideration is a matter of defeuse against any person not a holder in due course ” does not change the law as existing before the enactment of the statute. It applies to the consideration of the note and was not intended to apply to the case of one or more makers of a joint obligation, the consideration for which passed to another maker or makers of the same note.
In the light of Delaware County Trust, etc., Co. v. Haser, supra, and the act of May 16, 1901, we consider the affidavit of defense filed insufficient. The judgment is therefore reversed and the record remitted to the court below, with directions to enter judgment against the defendant for such sum as to right and justice may belong, unless other legal or equitable cause be shown to the court below why such judgment should not be so entered.