Majority
Headnote
Negotiable Instruments—Bona Fide Holder—Evidence.—In an action on a note, where the question is whether or not plaintiff is an innocent holder for value, interrogatories whose evident purpose is to show that plaintiff took the note with notice of a partial failure of consideration, it having been held on a former appeal of the ease that such partial failure of consideration was a defense pro tanto, are allowable, although defendant is precluded from questioning plaintiff’s ownership of the note by the fact that the pleadings admit that it was indorsed and delivered to him.Upon the former appeal it was held that the partial failure of consideration was a defense pro tanto: 71 Cal. 481 , 60 Am. Rep. 543 , 11 Pac. 385 . When the case went back for trial, one of the principal questions was whether the plaintiff had purchased the note with notice of the partial failure of consideration, or, in other words, whether he was an innocent holder for value. On the retrial the plaintiff, on cross-examination, was asked whether he purchased the note, which question was objected to and excluded. He was also asked the following question: “Do you know anything about the consideration for which this note was given?” which question was objected to and excluded. He was also asked the following: “You knew all about the facts of this note having been executed for a stack of hay, at the time it was transferred to you, did you not?” which question was objected to and excluded. He was also asked the following: “You were a party in interest to the contract for the sale of the hay for which the note was executed, were you not?” which question was excluded on objection. He was also asked the following: “At the time the note was given, did you know what it was given for?” which question was excluded on objection. We think that the court committed error in not allowing the questions to be propounded to the witness and answered. It is evident that under the pleadings it was admitted that the note in controversy was indorsed and deliv
I concur: Hayne, C.
Belcher, C. C., did not take part in this opinion.
For the reasons given in the foregoing opinion the judgment and order are reversed and cause remanded for a new trial.
Cases cited
- Braly v. Henry 71 Cal. 481 p. 4