Sterling v. Bender, 7 Ark. 201 (1846)

July 1846 · Arkansas Supreme Court

7 Ark. 201

Sterling & Snapp vs. Bender.

A bill or bote indorsed in blank is transferrable by delivery only, and so long as thd indorsement continues in blank, it makes the bill or note in effect payable to bearer. By the indorsement the payee divests himself of the legal interest in the bill or note, and it is vested by delivery in the holder.

An indorsement in blank constitutes a perfect transfer of the interest in the bill or note, and, without the addition of other words, will vest the right of action, and all other rights, in the transferee and subsequent holders.

Appeal from, the Circuit Court of Pulaski County*

Suit commenced by David Bender against Joseph Sterling.) before a justice of the peace of Pulaski, in December, 1845, on a note. Judgment against Sterling; be appealed to the circuit court, giving Snapp as security for the appeal, and the cause was tried at the May term, 1846, before Clendenin, judge.

It was submitted to a jury; they found for Bender, and judgment was accordingly rendered against Sterling and his security in the appeal. Motion for new trial, overruled, and bill of exceptions, setting out the evidence, from which it appears, that upon the trial of the cause, Bender offered to read in evidence a promissory note which had been filed with the justice as the foundation of the action, executed by Sterling to Wm. S. Blount for fifty dollars, due 1st Jan’y, 1845, and endorsed thus: “I assign the within;” which endorsement was signed by Blount, to the reading of which defendant objected, but the court permitted it read, to which he excepted. The note was all the evidence given on the trial. Sterling & Snapp appealed.

Cummins, for appellants.

Bertrand, contra*

Oldham, J.

This was an action brought before a justice of the peace by the appellee against the appellant, Sterling, upon a note given to Wm. S. Blount and indorsed in blank. It is contended for the appellants that such indorsement does not vest in the holder a right of action upon the note.

A bill or note indorsed in blank is transferrable by delivery only, and so long as the indorsement continues in blank, it makes the bill or note in effect payable to bearer. Chit, on Bills, 253. By the indorsement the payee divests himself of the legal interest in the bill or note, and it is vested by the delivery in the holder. Wilkinson v. Nicklin, 2 Dall. Rep. 296. An indorsement in blank constitutes a complete and perfect transfer of the interest in the bill or note, and without the addition of any other words, will vest the right of action and all other rights in the transferee and subsequent holders: though if the transferee be a mere agent, his principal may interfere, and a blank indorsement is now' considered as prima facie a transfer of the interest .until the contrary beestab-lished by showing that it was a mere deposit, and is of itself sufficient to transfer the right of action to any bona fide holder. Chitty on Bills, 255.

Bender, being the bonafide holder of the note indorsed in blank, was entitled to sue upon it. The judgment in his favor is therefore proper. The maker might have shown upon the trial that the indorsement in blank and delivery of the note were intended as a mere deposit. We see no error in the judgment of the circuit court, and the same is accordingly affirmed.