Wilkinson v. Jeffers & Cothrans

1. Where a negotiable note is transferred as collateral security after maturity, the legal title is vested in the holder, and a set-off against the payee is inadmissible as a defense to the aetion.

Complaint, in Coweta Superior Court. Tried before Judge Hammond, at September Term, 1859. This was an aetion brought by Jeffers & Cothrans, as endorsees against Uriah B. Wilkinson, the maker, on a promissory note, of which the following is a copy : “ $302 22-100. One day after date I promise to pay G. L. Anderson or order, three hundred and two (22-100) dollars, for value received. August 21st, 1857. (Signed,) “ U. B. WILKINSON.” Endorsed: “G. L. Anderson, per J. H. Anderson, Attorney.” Defendant pleaded the general issue and payment, and further, “ that the said G. L. Anderson, the payee of said promissory note, transferred said note to the plaintiffs long after said note had become due and payable, and that the said payee transferred said note to plaintiffs as collateral security only, who received it as such security, and not in the usual course of trade, and at the time plaintiffs received said note, the payee thereof was, and still is, indebted to defendant a large sum of money, to-wit: the sum of five hundred dollars, for one thousand bushels of wheat sold and delivered to said payee at his request by defendant, before said note became due, and after said note became due, and this the defendant is ready to verify,” etc. To which said last plea plaintiffs demurred, and after argument, the Court sustained the demurrer, and ordered the plea to be stricken. To which decision counsel for defendant excepted.