Harrell v. Citizens' Banking Co.

• Decision Date: 07 June 1900
• Citation: 36 S.E. 460,111 Ga. 846
• Parties: HARRELL v. CITIZENS' BANKING CO.
• Court: Georgia Supreme Court

36 S.E. 460

111 Ga. 846

HARRELL v. CITIZENS' BANKING CO.

Supreme Court of Georgia

June 7, 1900

Syllabus by the Court.

1. Where the payee of a promissory note secured by a collateral converts the same to his own use by an unauthorized sale thereof, he becomes liable to the maker of the note for the actual value of the collateral at the time of the sale. Waring v. Gaskill, 22 S.E. 659, 95 Ga. 731.

2. Inasmuch as the purchaser of a negotiable promissory note after its maturity takes it subject to the equities between the original parties, the maker, in a case of the nature above indicated, may, in defense to an action against him by such purchaser, recoup the value of the collateral at the time of its conversion by the original payee.

3. Applying the rules above announced to the facts of this case, the verdict was contrary to law and to the evidence, and the court ought to have granted a new trial.

Error from superior court, Dodge county; C. C. Smith, Judge.

Action by the Citizens' Banking Company against B. H. Harrell. Judgment for plaintiff. Defendant brings error. Reversed.

Roberts & Milner, for plaintiff in error.

W. M. Clements, for defendant in error.

PER CURIAM.

Judgment reversed.

FISH, J., absent on account of sickness.