Bothell v. Fletcher & Stobaugh

• Decision Date: 14 February 1910
• Citation: 125 S.W. 645
• Parties: BOTHELL v. FLETCHER & STOBAUGH.
• Court: Arkansas Supreme Court

125 S.W. 645

BOTHELL v. FLETCHER & STOBAUGH.

Supreme Court of Arkansas.

February 14, 1910.

Appeal from Circuit Court, Washington County; J. S. Maples, Judge.

Action by Campbell Bothell against Fletcher & Stobaugh. From a judgment for defendants, plaintiff appeals. Reversed and remanded for new trial.

This was a suit by appellant against the appellees on four negotiable instruments, acceptances, dated February 5, 1906, and executed by appellees to the American Jobbing Association and by it assigned to the appellant before due. The suit was begun in justice court. There were no written pleadings. Appellant testified, in substance, that he was in the loan and brokerage business in Iowa City, Iowa, that the American Jobbing Association applied to him to discount some paper, that he discounted the acceptances in suit 12 per cent. and paid cash for same, that he bought them in the usual and ordinary course of business, and took the instruments, less the discount, at just what the instruments purported on their face to be. The paper was purchased by him in the manner aforesaid, and was transferred to him by the payee April 20, 1906. The acceptances were due in 10, 13, 16, and 18 months respectively. There were two other notes or acceptances in the purchase for the same amounts due respectively in 4 and 7 months, which appellees paid about the time they were due. The original acceptances were introduced in evidence, and by agreement they have been brought here for the inspection of the court. On the back of each acceptance is its number. On 3,408 is the following: "Bank — Farmers and Stobaugh. Address Springdale, Arkansas. Apr. 20, Pay to the order of C. Bothell. American Jobbing Association by C. H. Dayton, Mgr." Then there are further indorsements which have been erased, by pen and ink marks across them as follows: "Pay to order of Johnson County Sav. Bank, Iowa City, Iowa. C. Bothell. Pay any bank or banker order, Johnson County Savings Bank, Iowa City, Iowa. Geo. L. Falk, Cashier." The other notes have similar indorsements. The appellant testified that he never had any connection with the American Jobbing Association; that he found by inquiring of the banks that they were buying this paper, and that it was satisfactory to them, so he purchased it. He gave his check for the money used in purchasing the paper, and the check was in evidence. He was not personally acquainted with the makers, and had no knowledge of their financial standing. The court permitted appellees, over the objection of appellant, to show that the acceptances were given for certain articles of jewelry purchased by appellees from the American Jobbing Association, also to show over appellant's objection, that the jewelry was worthless, and that the acceptances were given with the understanding at the time between the payee and appellees that they were not to be assigned or transferred. The bill of exceptions recites: "Defendant calls attention of the jury to the indorsement on the acceptances — the color of the ink, dates, etc. — showing that all of the indorsements were made at the same time." The appellant testified, among other things, "that the acceptances were not sold...