Strawberry Point Bank v. Lee

• Decision Date: 17 May 1898
• Citation: 117 Mich. 122,75 N.W. 444
• Court: Michigan Supreme Court
• Parties: STRAWBERRY POINT BANK v. LEE ET AL.

75 N.W. 444

117 Mich. 122

STRAWBERRY POINT BANK v. LEE ET AL.

Supreme Court of Michigan

May 17, 1898

Error to circuit court, Clinton county; Sherman B. Daboll, Judge.

Action by the Strawberry Point Bank against E. C. Lee and others. Judgment for defendants. Plaintiff appeals. Affirmed.

Edwin H. Lyon, for appellant.

Charles Snelling and Fedewa & Walbridge, for appellees.

GRANT C.J.

Plaintiff a corporation of Iowa, brought suit upon a note executed by the defendants for $1,600, payable "to A. B. Holbert, or order, of Greeley, Iowa." The note also contained the following provision: "Interest payable annually, and interest at the rate aforesaid upon such interest after the same becomes due, until paid; and we agree, if this note is not paid when due, and the holder sues the same, to pay a reasonable sum as attorney's fees, to be assessed by the court, and taxed as a part of the cost, in any suit brought thereon." The defense was that the note was obtained by fraud. Plaintiff claimed to be a bona fide purchaser, before due. If the note was payable in Michigan, it was not negotiable, and was therefore open to the defense set up and proven. Bank v. Purdy, 56 Mich. 6, 22 N.W. 93; Altman v. Rittershofer, 68 Mich. 287, 36 N.W. 74. If it was payable in Iowa, it became an Iowa contract, and was negotiable, under the decisions of that state. Sperry v Horr, 32 Iowa, 184; Bank v. Marsh, 89 Iowa 273, 56 N.W. 458. It is unnecessary to cite authorities to show that the law of the place where a promissory note or bill of exchange is made and delivered controls, in the absence of the designation of any other place; and, if any other place is designated, the law of that place controls. This is elementary. Plaintiff insists that the expression in the note, "We promise to pay A. B Holbert, or order, of Greeley, Iowa," fixes the place of payment. There is no direct evidence as to where or when the note was delivered. It was dated in Michigan, signed in Michigan, and defendants resided in Michigan. The presumption therefore is that it was delivered in Michigan. The note fixes no place for payment, unless the fact that the note stated that the residence of the payee was in Iowa fixes the place. No authorities are cited sustaining this contention. The name of the payee in a mortgage is usually stated, but this does not make it a contract to be executed in the state where the mortgagee resides. Adding the place of residence of the payee is merely descriptive. If a resident of Australia were the payee of a note executed and...