Newman v. Schwarz

LAND, Justice.

Plaintiff sued defendant in the civil district court for a balance of $322.94, with interest, on certain rent notes held by plaintiff and executed by defendant to his own order and by him indorsed.

Each of these notes bears across its face an inscription in red ink reading: “Rent Note Subject to Terms of Lease Dated May 2, 1927.”

The defense is that these notes are not negotiable, but are subject to the terms of the lease of May 2, 1927, between Norman F. Dahlman, as lessor, and defendant, as lessee; and that the lessor violated certain conditions of the lease for which defendant,…