199 Ky. 439 | Ky. Ct. App. | 1923
Affirming.
Appellant Roberts was in East St. Louis, Illinois, on March 20th, 1918. On that day he purchased three mules from E. Lawler at the price of $275.00 and gave to Lawler a check for that amount on the First National Bank of Bardwell, Kentucky. The mules were shipped to Kentucky by Lawler. Yery soon after the giving of the check Lawler took it to the Drovers’ National Bank, East St. Louis, and cashed it. Before cashing it the bank, at the instance of Lawler, sent the following telegram to the First National Bank of Bardwell, Kentucky:
“Will you pay check signed Yr. A. Roberts, $275.00?” To which telegram the First National Bank of Bardwell answered: “Will pay check signed W. A. Roberts, $275.00.”
On the face of the check are these words: “For three sound mules. ’ ’
When the mules arrived in Kentucky Roberts was displeased with them and directed the First National Bank of Bardwell not. to pay the check, and it declined to do so. Thereupon the Drovers’ National Bank brought this action against Roberts to recover the $275.00 on the cheek. Later it joined the First National Bank of Bard-well as a party defendant. At the conclusion of the evidence, the court on motion of the plaintiff bank directed the jury to find and return a verdict for it, and of this ruling the appellants, First National Bank and Roberts, complain on this appeal.
It is insisted that the words on the face of the check “for three sound mules” gave to the appellee bank notice of the defect in the title of Lawler, or rather gave the bank information that the check was given on a conditional sale or warranty of soundness and was not an absolutely irrevocable agreement to pay $275.00. Appellants further insist that the East St. Louis bank was not a holder in due course and relies upon subsection 56 of section 3720b, Kentucky Statutes, which reads:
' “To constitute notice of an infirmity in the instrument or defect in the title of the person negotiating the same, the person to whom it is negotiated must have had actual knowledge of the infimity or defect, or knowledge of such facts that his action in talcing the instrument amounted to bad faith.”
For the reasons indicated the judgment is affirmed