McCarty v. Roots - 62 U.S. 432 (1858)
U.S. Supreme Court
McCarty v. Roots, 62 U.S. 21 How. 432 432 (1858)
McCarty v. Roots
62 U.S. (21 How.) 432
Where an accommodation bill of exchange was paid by one of the endorsers, and there was no special agreement that they should be bound to pay in equal proportions as co-sureties, the endorser who took it up had a right to assign it as collateral security for a preexisting debt, and the assignee can maintain a suit against the original payee, who was also an endorser.
The endorser who took up the bill was a trustee, but the plea was defective in not averring that there remained sufficient funds in the trust estate to pay this bill after discharging the trust.
This was a suit brought by Roots, Coe & Aydelotte, citizens of Ohio, against Enoch McCarty, a citizen of Indiana.
It was upon a bill of exchange drawn by Tyner & Childers upon Richard Tyner, of New York, in favor of Enoch McCarty, for $4,500. Tyner accepted the bill, and McCarty endorsed it to George Holland, who endorsed it to Ezekiel Tyner, who endorsed it to Roots, Coe & Aydelotte. It was alleged that Holland took it up when past due at the Richmond Bank, and that Holland delivered the bill to the plaintiffs as collateral security for a preexisting debt of Richard Tyner.
The nature of the pleas is set forth in the opinion of the Court, and the following reference to them will be sufficient:
Defendant filed eight pleas.
1. The general issue, withdrawn by defendant after the judgment of the court upon the demurrers.
2. Plaintiffs filed replication; issue joined; defendant withdraws plea.
3. Plaintiffs demurred to this plea; joinder in demurrer; demurrer sustained.
4. Plaintiffs filed replication; issue joined; defendant withdraws plea.
5. Plaintiffs demurred to this plea; joinder in demurrer; demurrer sustained.
6. Plaintiffs demurred; joinder in demurrer; demurrer overruled; plaintiffs obtained leave to withdraw their demurrer and reply; replication filed; defendant demurred to it; joinder in demurrer; defendant's demurrer to replication overruled.
7. Plaintiffs demurred; joinder in demurrer; demurrer sustained; defendant obtained leave to withdraw his joinder in demurrer, and to amend plea; amended plea filed; plaintiffs demurred to it; joinder in demurrer; demurrer sustained.
8. Plaintiffs demurred; joinder in demurrer; demurrer sustained.
Upon these rulings of the court, the case was brought up here and was submitted on printed argument by Mr. O. H. Smith for the plaintiffs in error, and argued by Mr. Gillet for the defendants.