Beattyville Bank v. Roberts

• Decision Date: 23 February 1904
• Parties: BEATTYVILLE BANK v. ROBERTS et al.
• Court: Kentucky Court of Appeals

78 S.W. 901

117 Ky. 689

BEATTYVILLE BANK v. ROBERTS et al.

Court of Appeals of Kentucky.

February 23, 1904

Appeal from Circuit Court, Lee County.

"To be officially reported."

Action by the Beattyville Bank against T. T. Roberts and others. From a judgment in favor of defendants, plaintiff appeals. Reversed.

Gourley & Roberts, Jno. J. McHenry, and T. B. Blakey, for appellant.

S. P Stamper and O. H. Pollard, for appellees.

BURNAM C.J.

This action was instituted by the Beattyville Bank, of Beattyville, Ky. against T. T. Roberts, Ibby Roberts, and the J. W. Slack Company, on a promissory note dated March 25 1902, payable four months after date, for $546, the note being signed by T. T. and Ibby Roberts, and indorsed by the J. W. Slack Company. The defendants T. T. and Ibby Roberts in their answer plead that the note was executed by them to their codefendants, the J. W. Slack Company, without consideration, and that the plaintiff was apprised of this fact before it purchased the note. Plaintiff, for reply denied that the note was executed without consideration, or that they were apprised of this fact before its purchase by them, or that there was no consideration to support it. A jury trial resulted in a verdict and judgment for the defendants, and plaintiff has appealed.

The facts developed by the testimony are as follows: On the 22d of November, 1901, T. T. Roberts and Ibby Roberts executed and delivered to the J. W. Slack Company, of Louisville, Ky the following promissory note: "686.00. Beattyville, Ky. Nov. 22, 1901. Four months after date we promise to pay to the order of the John W. Slack Co., distillers, of Louisville, Ky. $686.00, without defalcation, value received, negotiable and payable at the Beattyville Bank, Beattyville, Ky. [Signed] T. T. Roberts, Ibby Roberts." Simultaneously with the execution of this note, the J. W. Slack Company executed and delivered to T. T. Roberts the following written agreement: "We have this day sold to T. T. Roberts fifteen barrels of ninety-eight whiskey, and twenty barrels new, for which he gives me his four months note, dated November 22, 1901, for $686.00. If Mr. Roberts should die, we agree to take back the whiskey at what it was sold to him. J. W. Slack Company, By J. W. Slack, President." Before the maturity of this note, the J. W. Slack Company, by J. W. Slack, indorsed and delivered it for value to the appellant, the Beattyville Bank, of Beattyville, Ky. At the maturity of the note the bank gave notice thereof, and demanded its payment both from appellees and the J. W. Slack Company.

Upon the trial T. T. Roberts testified that he did not know that the bank held the note until he received this notice, and that he immediately went to the bank and notified R. N Goodloe, its cashier, that he had a contemporaneous parol agreement with the J. W. Slack Company that he was only to pay for the whisky as it was delivered to him, and that he had already paid to them $140 for whisky delivered, which should be credited upon the obligation; and that he directed him to return the note to the J. W. Slack Company, and not to purchase any more of his notes executed to the company, and at the same time explained to him the conditions of the written agreement of the Slack Company to him; that a few days after his conversation with Goodloe he received a letter from the Slack Company, inclosing the $686 note, dated November 22, 1901, and the note sued on for $546, which he executed in renewal of the balance due upon his original obligation, which reads as follows: "546.00. Beattyville, Ky. March 25, 1902. Four months after date we promise to pay to the order of John W. Slack Co., inc. distillers, of Louisville, Ky. $546.00, without defalcation, value received, negotiable and payable at the Beattyville Bank, Beattyville,...