20 Md. 107 | Md. | 1863
delivered the opinion of this Court:
This suit was brought to recover the amount of a promissory note made by Thomas S. Sumwalt, “Treas. of St.Stephen’s-Episcopal Church Fund.” The evidence contained in the 2nd exception shows, that the note in question was-drawn in- blank and given to J. W. Wilson & Co., in settlement of their account for materials furnished and work done for St. Stephen’s Church, and that afterwards, before its maturity, it was passed by Wilson to the appellee, with whom he had previously been in partnership, in settlement of a debt found to he due to him on their dissolution. It-also appears that the appellee received the note with full knowledge of the debt for which it was issued, and that he* afterwards inserted his own name as payee.
The 1st exception, presenting substantially the' same1 questions as the appellant’s 1st and 3rd prayers,, was taken to the admission of the note in evidence, on the ground that it was not the appellant’s obligation, and for that reason did not support the declaration. The note on its face
The 2nd exception appears to have been taken to* the admission of evidence showing that the note was drawn in blank, and passed by the witness Wilson to the appellee,, who afterwards inserted his own name as payee.
It is to be observed that this evidence was offered after the appellant had proved, on the cross-examination of that witness, that the note was made and delivered to him in settlement of his account for the work done for St. Ste23hen’s Church. The real objection to the evidence excepted to is, that its effect was to extend to the ap23ellee a 23i'otection or immunity from outstanding equities of the maker,- which,, as payee of the note, he was not entitled to claim.-
Upon a consideration of the whole evidence contained in this exception,- we think the objection is more technical than substantial, for on thequoof that the note -was passed to and received by the appellee, with full knowledge on his part of the transaction in which it originated, he would of necessity take it subject to the equities and defences- of
The evidence objected to could not have the effect of relieving the note in his hands from the legal defences or the equities of the maker, nor give to him the rights that an endorsee would have had by receiving the note before maturity, without notice of such defences or equities.
In our opinion the objection made to the admission of ibis evidence was properly overruled. The material questions in the case are presented by the 3rd bill of exceptions. The evidence to which we have referred, shows that the note was issued by the appellant for a debt due by St. Step]ion’s Church for materials furnished and work done on its account, and that the appellee knowing that fact received it in payment of a pre-existing debt. The instruction granted by tlie Court, proceeds on the theory that the appellee’s right to recover was not affected by that information. As we have before stated, the appellee in receiving the note with full knowledge of its origin and character, took it with the same infirmities and subject to such disabilities as would have existed had he been the original creditor of the Church for whose debt the note was issued. In view of the evidence showing the character of the note, and the appellee’s knowledge of it, we think the instruction granted did not cover the case presented, and that it was erroneous, because the jury were not required to find, as one oí' the facts necessary to support it, that the appellee received the note without notice of the consideration for which it was given. Treating the note as a promise of the appellant, and the appellee, from his knowledge of the debt for which it was issued, as the original payee, the question as to the sufficiency of the consideration is then presented. The validity of every parol contract, whether verbal or written, depends on the fact of a sufficient legal consideration, and that of a promissory note in the hands of a payee, or of an endorsee after maturity, or before maturity with notice of the real consideration, is always open to inquiry.
The judgment will be reversed, with leave to the appellee to take a procedendo.
Judgment reversed, with leave to appellee to take .out a procedendo,