Merchants & Farmers Bank v. Smith

• Decision Date: 27 April 1914
• Docket Number: 16354
• Citation: 64 So. 970,107 Miss. 105
• Court: Mississippi Supreme Court
• Parties: MERCHANTS AND FARMERS BANK v. W. T. SMITH

64 So. 970

107 Miss. 105

MERCHANTS AND FARMERS BANK v. W. T. SMITH

No. 16354

Supreme Court of Mississippi

April 27, 1914

APPEAL from the circuit court of Union county, HON. H. K. MAHON Judge.

Suit by Merchants & Farmers Bank against W. T. Smith. From a judgment for defendant, plaintiff appeals.

The facts are fully stated in the opinion of the court.

Affirmed.

Jones &amp Knox and C. A. Bratton, attorneys for appellant.

H. D Stephens and R. H. & J. H. Thompson, attorneys for appellee.

Argued orally by C. A. Bratton, for appellant, and R. H. Thompson, for appellee.

OPINION

REED, J.

This is an action on a promissory note made by appellee, payable to appellant, and being for two thousand dollars, with interest from date, and attorneys fees. The note was given in the purchase by appellant of preferred stock in the New Albany Clothing Manufacturing Company to the amount of two thousand dollars.

Appellee filed the plea of general issue to the declaration. He also filed a special plea, which we quote in full: "Defendant, W. T. Smith, for further and special plea in this behalf says that the plaintiff should not have and recover from him in this action, because he says that at the time of the execution of said note, and as an inducement for defendant to sign the same, it was agreed by and between plaintiff or its authorized agents and this defendant that if defendant would subscribe for stock in the New Albany Clothing Manufacturing Company that plaintiff would advance him the money to pay for the said stock, and that in order that said company might continue in business that plaintiff would advance and furnish money to defray the operating expenses of said company, and defendant refused to sign said note until it was definitely and finally understood that said bank, for the purpose of paying the operating expenses aforesaid, would advance to the company eighty per cent. of the face value of the accepted credit invoices given for goods sold by the company to its customers. All the aforesaid was understood and agreed upon and constituted the true consideration of this note; but defendant avers that plaintiff failed and refused to carry out its part of said agreement, on account of which failure and refusal the said company was forced to cease business, and the said stock became, and is now, wholly worthless, and that said conduct in refusing to so advance money constituted a complete failure of the consideration of said note."

A demurrer was filed to...