Robert Cooper Grier

“ In the case of the United States v. Bank of the Metropolis, the Supreme Court of the United States said,-'The rule is, that a want of consideration between drawer and acceptor is no defence against the right of a third party who has given a consideration for the bill, and this even though the acceptor has been defrauded by the drawee, if that be not known by the third party before he gives value for it.' (15 Pet., 393.)
The special verdict finds that Stivers (who received the bill from the payee indorsed in blank) did not indorse it, but delivered it to the plaintiffs. ”

“ Every person in possession of a bill or note, indorsed in blank, and appearing to be the lawful holder thereof, can by delivery convey a good title thereto to any one believing him to be such owner, so as to convey a right of action against the maker or acceptor, notwithstanding the want of consideration, or any other matter of defence, as between the previous parties to the bill or note. ”

“ The general commercial law does not exclude the defence. The law of Virginia, where the suit was brought, or (so far as we know) of Kentucky, where the plaintiffs took the note, does not exclude it. In neither of those states is the note negotiable by their own law. (2 Leigh (Va.) , 198; 6 Munf. (Va.) , 316; 1 Call (Va.) , 226, 497; 2 Wash. (Va.) , 219.) Therefore the plaintiffs are driven to rely on the statute of Pennsylvania; and that, as expounded by the courts of that state, does not sustain them.
Mr. Justice GRIER delivered the opinion of the court. ”

“ The evidence referred to cannot change it here, as this court has nothing to do with evidence.
The counsel for the plaintiffs contend that this must be considered as an agreed case, not as a special verdict. This does not help the matter in the least. If it be an agreed case, it is agreed in it that, so far as the jury find facts, the court shall pronounce the law upon them. So far as they find evidence, the court shall infer from it the facts, and pronounce the law upon the facts so inferred. It is pro tanto a submission to the court upon the evidence. ”

“ The explanation proceeds,-'Provided, always, that in every action by the holder of any such note, whether against the drawer or indorsers, the defendant may set off and defalk, so far as the plaintiffs shall be indebted justly to him in account by bonds, specialty, or otherwise.'
The proviso subjects every holder for his own acts, and no further. ”

“ To repel the presumption that the holder came by the bill or note honestly, fraud, felony, or some such matter, must be proved, and a holder for value is not affected by any infirmity in the bill or note, or in the previous negotiations thereof, unless mala fides is brought home to him. ”

“ They also find that Stivers delivered the note to plaintiffs, but without saying whether for a valuable consideration or not; and they refer the court to be deposition of a witness and the record of a chancery suit appended to the verdict for the evidence on that point.
This special verdict is manifestly imperfect and uncertain, as it finds the evidence of facts, and not the facts themselves. [1]
A verdict, says Coke (Co. Litt., 227, a) , finding matter uncertainly and ambiguously, is insufficient, and no judgment will be given thereon. ”

“ In England the most of the cases have been those of bankers, who probably make advances to their customers upon an understanding, in all cases, that they shall be covered by bills; or advances are made on the credit of the bills. ”

“ It is just that the defence here should be sustained; because the defendant received nothing, the plaintiffs really paid nothing for the note, and therefore it is iniquitous to require the defendant to pay the plaintiff some nine or ten thousand dollars, merely because he signed, and they hold, the paper. ”

“ The want of Stivers's indorsement is no objection to the title of the plaintiffs. They had a right to fill up the blank indorsement by an assignment to themselves, as they did. (A number of cases cited. 11 Pet., 81, &c.) ”

“ Prentice & Weissinger, to account for the notes by them received of Stivers, and the answer of Prentice & Weissinger to the cross-bill; it appears that Prentice & Weissinger had paid as indorsers and securities for Stivers upwards of twelve thousand dollars, and that this note and others were delivered over to Prentice & Weissinger in consideration of the moneys so previously paid by them for Stivers, and as indemnities; from which, however, they are not likely to be saved from loss by all the securities which Stivers gave them. ”

“ He alleged that Stivers had placed in the hands of Prentice & Weissinger a large amount of securities, and required an exhibition thereof. Weissinger answered the cross-bill, and gave in a list of these securities, amongst which was Zane's note; to which was attached the remark, that they had received notice that the note would be defended on the ground of no consideration. The answer also offered to transfer all the securities to Thomas for eighty per cent. of their amount, averring a belief of their insufficiency to pay the debt. ”