133 N.C. 630 | N.C. | 1903
after stating the facts. We think that the exception to his Honor’s ruling in submitting the second issue in regard to the draft of $574.48 should be sustained. The question raised by the interplea on the part of tbe bank is
As we understand the evidence, the bank advanced to the defendants $691.99 with which to pay for this identical cotton, paying Metzger Bros.’ draft, with bill of lading attached for that amount. As a part of the transaction the same bill of lading accompanying this draft was attached to the draft for $836.26, drawn by the defendants to their own order and endorsed to the interpleader bank. In other words, the
It is well settled that when the vendor of goods ships, them, taking from the carrier a bill of lading to deliver to his own order, and thereupon draws a draft payable to his own order upon the vendee, attaching the bill of lading, and endorses to a third party such draft for value, the title to the goods vests in the endorsee at least to the extent of the amount advanced. Daniel on Neg. Instruments, sec. 1734 (a). The law is thus stated and cited with approval by Mr. Daniel: “When the vendor of goods consigns them to the purchaser, taking a bill of lading from the carrier and intending to resume the right of control over them, at the same time draws upon the purchaser for the price and delivers the bill of exchange with the bill of lading attached to an endorsee for a. valuable consideration, the consignee, upon receipt of the goods, takes them subject to the rights of the holder of the bill of lading to demand payment of the bill of exchange, and cannot retain the price of the goods on account of a debt due to him from the consignor.” Emery v. Irving Bank, 25 Ohio St., 360, 18 Am. Rep., 299; Bows v. Ex. Bank, 91 U. S., 618. This Court in Finch v. Gregg, 126 N. C., 176, 49 L. R. A., 679, recognized this almost elementary principle, carrying it to- its fullest extent. It appeared that Gregg had shipped to certain persons a lot of corn and drew a draft on them with the bill of lading attached. The bill of exchange was endorsed to “The Seymour Darme Company.” Clark, J., said: “When
The plaintiff relies upon the case of Packing Co. v. Davis, 118 N. C., 548. There the question arose between the owner of a draft, which had gone to protest, and the receiver of an insolvent bank. The facts were found by the Court, showing a course of dealing between the bank and its customers, and the Court said: “In the present case it is found
In Bank v. McNair, 114 N. C., 335, it appeared that the •defendants executed their note to* the First National Bank of Wilmington for $5,000, and that this note before maturity, with others amounting to $17,000, was discounted by the plaintiff bank and the proceeds credited to the Wilmington Bank. About one-half of the proceeds of the lot of notes was paid out upon checks of the Wilmington Bank. The Wilmington Bank failed, the defendants having to' their credit at said bank something over $4,100. This Cburt held that this transaction constituted the plaintiff bank a purchaser for value, saying: “It is true, if nothing had passed and the plaintiff had simply given the payee credit on its books, this would not have made the plaintiff a purchaser for value.”
In Cotton Mills v. Weil, 129 N. C., 452, the facts as stated by Clark, J., are: “When tire shipment of fifty bales was made, Weil Bros, drew on the consignee, the plaintiff, the
The facts in these cases distinguish them from this record. We cannot see how the fact that the defendants endorsed the bill of exchange prevented the bank being a purchaser for value. This was no more than additional security for its payment and in no manner affected the title to the cotton. Nor can we see how the testimony of S'. A. Ashe that the endorsement “had been changed by making it a special endorsement” could affect the question involved in the issue. A blank endorsement may at any time be filled in to show who is the true owner of the bill. Daniel on Negotiable Instruments, sec. 694. The holder of a bill or note, endorsed in blank, may write over the endorsement any contract not inconsistent with the undertaking, of the parties or the original contract. * * * In manner he may write over the blank endorsement in full to himself or any other person. 4 Am. & Eng. Enc., 268, where the authorities are collected. We do
New trial.