Legal Opinion

Louisville Banking Co. v. Howard & Kornegay

Supreme Court of Alabama

Decided November 15, 1898PublishedCited by 4 opinions

Appeal from tlie Circuit Court of Dallas. Tried before tlie Hon. John Moore. Tlxis action was brought by the Louisville Banking Company against Howard & Kornegay; and counted on a promissory note executed by the defendants on September 4, 1896, and made payable to the Commercial Bank of Selma, on October 4, 1896, at the Commercial Bank of Selma, and which note the complainant avers was indorsed by the Commercial Bank of Selma and was the property of the plaintiff.

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Appeal from tlie Circuit Court of Dallas. Tried before tlie Hon. John Moore. Tlxis action was brought by the Louisville Banking Company against Howard & Kornegay; and counted on a promissory note executed by the defendants on September 4, 1896, and made payable to the Commercial Bank of Selma, on October 4, 1896, at the Commercial Bank of Selma, and which note the complainant avers was indorsed by the Commercial Bank of Selma and was the property of the plaintiff. The defendant pleaded the general issue and payment and several special' pleas, among winch were the following : “9th. The…

1Opinion of the CourtTyson, J.

The cases of First National Bank of Decatur v. Johnston, 97 Ala. 655; Spira v. Hornthall, 77 Ala. 145; Connerly v. Planters & Merchants Ins. Co., 66 Ala. 432, are, conclusive that negotiable paper transferred to secure a pre-existing debt, in consideration of the extension of the time of the payment of the debt, makes the transferee a bona fide holder for value, and not subject to equities between the prior parties of which he had no notice.

'The ninth plea should have negatived the presumption of the acquisition by the plaintiff of the note for a valuable consideration, it being shown by its-…

2Cases cited3 opinions

  1. Spira v. Hornthall, Whitehead, Weissman & Co.Supreme Court of Alabama · 1884
  2. Connerly & Co. v. Planter's & Merchants' InsuranceSupreme Court of Alabama · 1880
  3. First National Bank of Decatur v. JohnstonSupreme Court of Alabama · 1892

3Cited by4 opinions

  1. Citizens Nat. Bank v. BuckheitAlabama Court of Appeals · 1916
  2. American National Bank v. DewSupreme Court of North Carolina · 1917
  3. Prim & Kimbell v. HammelSupreme Court of Alabama · 1902
  4. Fisher v. O'HanlonNebraska Supreme Court · 1913

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