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86 Mich. 305

Stevens v. Hannan

Michigan Supreme Court

Decided June 5, 1891

Michigan Supreme Court · decided 1891-06-05

<p>Bills and notes — Negotiability—Assignment to joint maker — Contribution — Action by indorsee.</p> <p>1. One of several joint makers of a promissory note, to whom it is assigned by the payee, cannot, by its indorsement before maturity to a third party, convey any right except to bring suit for contribution, the appearance of his name as one of the makers being sufficient notice to his indorsee.</p> <p>2. If the effect of the assignment of a promissory note is to make it thereafter non-negotiable, the assignee can bring suit thereon in his own name under the statute; and if such is not the effect, the indorsement of the note in blank by the assignee, and its delivery to a third party, entitles him, as holder, to bring suit in his own name.</p>

Good law ✅— No negative treatment on recordhow we know

Affirmed · Decided 1891-06-05

How this case has been cited

Cited by 8 later decisions — most recently November 1941

8 state decisions

40189119001910192019301940decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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McGrath, J.

¶1Defendants Hannan, Coolican, and Watson executed and delivered to defendant Batchelder, in part payment for some land, the following note:

“$1,300.00. Toledo, 0., Nov. 1, 1887.
“On or before one year after date we promise to pay to the order of Wm. M. Batchelder thirteen hundred (1,300) dollars, at Toledo, 0., value received, with interest at the rate of 6 per cent, per annum, payable semiannually.
“William W. Hannan. “James S. Coolican. “Balph E. Watson.”

¶2On the 4th of November, 1887, Batchelder transferred the note to Watson by written assignment of the note on the back thereof, as follows:

“Toledo, Ohio, Nov. 4, 1887.
“Eor value received, I here,by assign all interest in and to this note to Balph E. Watson.
“W. M. Batchelder.”

¶3Watson transferred it in turn to the plaintiff, for *308value,'before maturity, by writing his name on the back, and delivering it to him.

¶4The declaration was on the common counts, with a copy of the note and the writings on its back appended, with the usual notice. On the trial a count was added, averring an assignment of the note from Watson to plaintiff. Defendants had judgment, and plaintiff appeals.

¶5The defendant Hannan upon the trial insisted—

1. That the plaintiff could not sue in his own name,' but should have brought suit in the name of the payee.
2. That the note, being transferred to Watson, one of the makers, was paid, and therefore could not again be put in circulation so as to charge defendant Hannan in a suit upon it.

¶6I do not think that the first point is well taken. If the effect of Batchelder’s indorsement was to make the note thereafter non-negotiable, then the assignment from Watson to plaintiff entitled plaintiff to sue in his own name under the statute, and, if Batchelder’s indorsement did not affect its negotiability,, then Watson’s indorsement entitled plaintiff, as holder of the note, to sue in his own name.

¶7The second point raised is well taken. Watson, while the note was in his possession under the assignment or indorsement to him, could not have brought suit, except for contribution, and he could not, by assignment or indorsement, convey any greater .right than he himself had. His name appearing as one of the makers was sufficient notice to plaintiff.

¶8The judgment below is affirmed, with costs.

The other Justices concurred.
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