Kellogg v. Hale

<p>1. Bills and notes, § 462*—when instruction erroneous. In an action on a promissory note by a person claiming to be an innocent holder for value before maturity where the maker’s defense was that false representations were made to him as to the consideration of the note and that there was no consideration for it, an instruction, in effect, telling the jury that plaintiff could not recover if there was no consideration for the note and there was fraud and circumvention at the time it was made, and that the burden was on the plaintiff to prove by a preponderance of the evidence every material fact of his case, held erroneous for the reason there was no evidence of any fraud and circumvention in procuring the note, and also for the reason that the burden was on the defendants and not the plaintiff to show that the note was without consideration and that plaintiff was not an innocent holder for value before maturity.</p> <p>2. Bills and notes, § 61*—fraud which will not invalidate. False representations made to the maker as to the consideration, held not to constitute such fraud as will invalidate the note; the fraud must relate to the execution and not to the consideration on which it is based.</p> <p>3. Bills and notes, § 61*—what fraud invalidates. Fraud which vitiates a promissory note must consist of some trick or device that induces the giving of one kind of an instrument under the belief of the maker that he is giving one of a different kind.</p>