Walden v. Warren, 3 Div. 764
| Court | Alabama Supreme Court |
| Writing for the Court | BOULDIN, J. |
| Citation | 215 Ala. 94,109 So. 749 |
| Decision Date | 14 October 1926 |
| Docket Number | 3 Div. 764 |
| Parties | WALDEN v. WARREN. |
109 So. 749
215 Ala. 94
WALDEN
v.
WARREN.
3 Div. 764
Supreme Court of Alabama
October 14, 1926
Appeal from Circuit Court, Montgomery County; Leon McCord, Judge.
Action by E.H.E. Warren against J.B. Walden. Judgment for plaintiff, and defendant appeals. Affirmed.
Ball & Ball, of Montgomery, for appellant.
Hill, Hill, Whiting, Thomas & Rives, of Montgomery, for appellee.
BOULDIN, J.
The suit is upon a promissory note by payee against maker. There was a plea of "no consideration." Without dispute, defendant negotiated and obtained from plaintiff a loan of $2,000, the proceeds being paid in part to defendant and the balance applied to other obligations as agreed. The loan was secured at the time by assignment of an interest in a fire insurance policy to the amount of the loan, with power of attorney to collect, a loss having already occurred. Soon thereafter the demand note sued upon was executed. It is not insisted that defendant merely sold an interest in the policy to plaintiff for $2,000, no personal indebtedness arising. The evidence, without controversy, imports a loan, and it is conceded, in brief, that defendant is indebted to plaintiff therefor, secured by assignment of the policy.
The evidence is further without dispute that the instrument sued upon was intended by both parties at the time as additional or substituted security for the same debt.
An existing indebtedness is valid consideration for a note or other security given by debtor to creditor. As between them, no new or present consideration is necessary. Turner v. McFee, 61 Ala. 468; 13 C.J. p. 362, § 228. It is now so declared by statute, whether the note is payable on demand or at a future time. Code § 9053; First National Bank v. Laughlin, 209 Ala. 349, 96 So. 206.
It is such value as to constitute the indorsee of commercial paper as collateral a holder in due course. Vogler V. Manson, 200 Ala. 351, 76 So. 117. The rule obtaining in the law of fraudulent conveyances is not involved.
The plea of "no consideration" was not made out under any phase of the evidence. An affirmative instruction could have been given for plaintiff on that issue. There was therefore, no error in refusing charges on that subject to defendant.
The real controversy of fact arose under the pleas of fraudulent misrepresentations in the procurement of the note, misstatement of its contents relied upon by defendant, and of fraudulent alteration after signature. This issue was...
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Hall v. Hall, 3 Div. 339.
...Section 9053, Code of 1923, Code 1940, Tit. 39, § 29; Reliance Equipment Co. v. Sherman, 216 Ala. 214, 112 So. 822; Walden v. Warren, 215 Ala. 94, 109 So. 749; Fortson v. Bishop, 204 Ala. 524, 86 So. 399; Patrick v. Kilgore, 238 Ala. 604, 193 So. 112. Likewise, "money has no earmark". "The ......
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Kinney v. Kinney, 6 Div. 690
...Russell, 67 Ala. 9; Saffold v. Wade's Ex'r, 51 Ala. 214; Reliance Equipment Co. v. Sherman, 216 Ala. 214, 112 So. 822; Walden v. Warren, 215 Ala. 94, 109 So. 749. The satisfaction of the debt is effective pursuant to the agreement until relief is had against it by some process of law. That ......
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Patrick v. Kilgore, 6 Div. 589.
...payment or not. Vogler et al. v. Manson, 200 Ala. 351, 76 So. 117; Fortson et al. v. Bishop, 204 Ala. 524, 86 So. 399; Walden v. Warren, 215 Ala. 94, 109 So. 749; Reliance Equipment Co. v. Sherman, 216 Ala. 214, 112 So. 822. This is in harmony with the construction of this statute generally......
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Reliance Equipment Co. v. Sherman, 1 Div. 445
...pre-existing debt constitutes value and supports an assignment of commercial paper as in due course. Code, § 9053; Walden v. Warren (Ala.) 109 So. 749. Plea No. 4 proceeds on the theory that the purchase of the note for credit on account due from payee to indorsee was not such value, and th......
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Hall v. Hall, 3 Div. 339.
...Section 9053, Code of 1923, Code 1940, Tit. 39, § 29; Reliance Equipment Co. v. Sherman, 216 Ala. 214, 112 So. 822; Walden v. Warren, 215 Ala. 94, 109 So. 749; Fortson v. Bishop, 204 Ala. 524, 86 So. 399; Patrick v. Kilgore, 238 Ala. 604, 193 So. 112. Likewise, "money has no earmark". "The ......
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Kinney v. Kinney, 6 Div. 690
...Russell, 67 Ala. 9; Saffold v. Wade's Ex'r, 51 Ala. 214; Reliance Equipment Co. v. Sherman, 216 Ala. 214, 112 So. 822; Walden v. Warren, 215 Ala. 94, 109 So. 749. The satisfaction of the debt is effective pursuant to the agreement until relief is had against it by some process of law. That ......
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Patrick v. Kilgore, 6 Div. 589.
...payment or not. Vogler et al. v. Manson, 200 Ala. 351, 76 So. 117; Fortson et al. v. Bishop, 204 Ala. 524, 86 So. 399; Walden v. Warren, 215 Ala. 94, 109 So. 749; Reliance Equipment Co. v. Sherman, 216 Ala. 214, 112 So. 822. This is in harmony with the construction of this statute generally......
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Reliance Equipment Co. v. Sherman, 1 Div. 445
...pre-existing debt constitutes value and supports an assignment of commercial paper as in due course. Code, § 9053; Walden v. Warren (Ala.) 109 So. 749. Plea No. 4 proceeds on the theory that the purchase of the note for credit on account due from payee to indorsee was not such value, and th......