Majority
Headnote
1. Evidence—Competency oe evidence to discredit a witness. 'The real issue between these parties was as to the genuineness of the note given by Law to Emory, and: which formed the subject of the action. The defense was forgery. If that note was genuine it was transferred to Sayles before maturity, upon a full and fair consideration and without knowledge on his part of any defect in the security. He thus became a bona fide holder against whom and his immediate transferee no declarations of the payee' and prior holder were admissible. The court so ruled and excluded them all. The propriety of that ruling is questioned on this appeal.
Sayles testified to a purchase of the note by himself and described it as an absolute transfer. He said that Emory owed him five or six hundred dollars for money lent and six or seven hundred dollars for professional services rendered. For this debt he held a mortgage against Emory of $200 and some notes, the balance resting in account. When the note in controversy was transferred, or in consideration thereof, Sayles cancelled and discharged the-mortgage and extinguished the debt, the amount of that was not fixed or certain, and to meet a possible emergency Sayles agreed that if his debt fell short of the amount of the note he would pay Emory the difference.
This agreement did not create a trust, as the learned counsel for the appellant claims, nor did it leave or vest in Emory any interest in the note after its transfer to Sayles. The contract to pay to Emory was part of the purchase price of the transfer, and was, in substance, that Sayles should give Emory for the note its amount with accrued
But we are inclined to think that some of that proof stood outside of the rule thus enforced, and was admissible upon other grounds. The plaintiff had proved by Mrs. Barnes the origin and inception of the note, and, as a consequence, that it was genuine and not a forgery. In the face of that evidence, if admitted to be true, the defendant’s proof founded upon the handwriting of the signature, ; was of very little consequence. It was, therefore, vitally important to the defense to disprove or throw doubt upon the story which she told. In itself, it was not free from elements of suspicion. She declared that she exchanged farms with Emory, agreeing to pay him in addition §1,100; that she gave a mortgage to Law for that amount, and that he assumed her debt to Emory by giving the latter the note in question. How, that note had ten years to run, with interest, not payable annually, but accumulating until maturity. Why Emory should have preferred it to Mrs. Barnes’ mortgage, upon which naturally the interest would be payable annually, we do not know and cannot readily imagine. If she was willing to give the security to Law, she would have been willing to have given it to him, and the motive for his choice is not readily discernible. The mortgage to Law was not put in evidence, for some unknown reason, but the fact of its actual existence is perhaps fairly inferrable from defendant’s omission to show that there .was no such record. The deed from Emoiy to Mrs. Barnes was produced," and its date is found to be March, 1866, or eight years before the note in question was given, so that the debt of Mrs. Barnes to Emory must have remained unpaid and unsecured for that long period of time, and until the mortgage was given to Law, and his note to Emory.
In that shape of the case the counsel for the defendant offered in evidence a release of all demands executed by Emory to Law on February 28, 1874, and a note from Emory to Law dated four days earlier for §221, payable with interest in one year. These papers preceded the note in controversy, which was dated April 7, 1874, by a little more than one month. They served to show that at the
It is a fact, a situation which was sought to be proved, not a declaration or assertion of Emory; and a fact, too, which antedated the note, and existed before that was made.' And it was one also which bore directly upon the truthfulness of a witness, and of an explanation which were vital to the controversy in hand. We think the evidence thus rejected, should have been submitted to the jury. Its force and effect it is not our province to anticipate or determine.
There was another exception of the defendant which we think was well taken. The proof on the part of plaintiff, was that the signature of the note was in the genuine handwriting of Law, and that was supplemented by the positive
For these errors, the judgment should be reversed, and a new trial granted, costs to abide the event.
All concur.