Pacific-Southwest Trust & Savings Bank v. Valley Finance Corp.

The plaintiff commenced an action to recover on a promissory note. The defendant answered hy interposing certain denials, by alleging a guarantee and by alleging an affirmative defense to the effect that the plaintiff was not the holder in due course and that the note sued on was an accommodation note for which the defendant received no value, and by alleging a further defense that the note was ultra, vires. The action was tried before the trial court sitting without a jury. The trial court made findings of fact in favor of the defendant and the plaintiff has appealed.

As the facts are not clearly set forth in the briefs of either party, we will make an attempt at setting them forth. The note sued on was a renewal note made by the defendant on March 1, 1923, and by its terms was due May 30, 1923: It was made payable to and delivered to the Valley Bank. The payee sold out to this plaintiff and the note was delivered to this plaintiff on March 1, 1924, nearly a year after its maturity.

On August 22, 1922, W. D. Mitchell was president and chief executive officer of the Valley Bank. He was likewise president of the California Motor Transport Association. The defendant corporation…

The plaintiff has filed a petition for a rehearing. It earnestly presses the point that the rights of the plaintiff as an accommodation party are those of a holder for value notwithstanding that -it took the note after its maturity.

At an early date the point was decided against the plaintiff. (Coghlin v. May, 17 Cal. 515 .) In 1917 we adopted the Uniform Negotiable Instruments Law. (Stats. 1917, p. 1531). It was adopted by incorporating it into our Civil Code and it became division 3, part 4, title XV. As so adopted it contained four chapters. Some of the chapters contained as many as eight articles or more. When so adopted it will be noted that the Civil Code contained cognate provisions (secs. 953, 1459) and that the Code of Civil Procedure contained cognate provisions. (Code Civ. Proc., sec. 368.) We are commanded by the law-making power to read the provisions of our four codes as though all such codes had been passed at the same moment of time and were parts of the same statute, and if the provisions of any article conflict with or contravene the provisions of another article of the same chapter, the provisions of each article must prevail as to all matters and questions…

The plaintiff commenced an action to recover on a promissory note. The defendant answered by interposing certain denials, by alleging a guarantee and by alleging an affirmative defense to the effect that the plaintiff was not the holder in due course and that the note sued on was an accommodation note for which the defendant received no value, and by alleging a further defense that the note was ultra vires. The action was tried before the trial court sitting without a jury. The trial court made findings of fact in favor of the defendant and the plaintiff has appealed. As the facts are not clearly set forth in the briefs of either party, we will make an attempt at setting them forth. The note sued on was a renewal note made by the defendant on March 1, 1923, and by its terms was due May 30, 1923. It was made payable to and delivered to the Valley Bank. The payee sold out to this plaintiff and the note was delivered to this plaintiff on March 1, 1924, nearly a year after its maturity. On August 22, 1922, W.D. Mitchell was president and chief executive officer of the Valley Bank. He was likewise president of the California Motor Transport Association. The defendant corporation was…