Holmes v. Goldsmith

This was an action brought by L. Goldsmith and Max Goldsmith, doing business as partners under the name of L. Goldsmith & Co., citizens of the state of New York, against M. B. Holmes, John Dillard, and R. Phipps, citizens of the state of Oregon, as makers of a promissory note, in the words and figures following:

'$10,000. Portland, Oregon, Aug. 9, 1886. Six months after date, without grace, we, or eithr of us, promise to pay to the order of W. F. Owens ten thousand dollars, for value received, with interest from date at the rate of ten per cent. per annum until paid, principal and interest payable in U.S. gold coin, at the First National Bank of Portland, Oregon; and in case suit is instituted to collect this note, or any portion thereof, we promise to pay such additional sum as the court may adjudge reasonable as attorneys' fees in said suit. M. B. Holmes. John Dillard. R. Phipps.'

On the day of its date, W. F. Owens indorsed the note, waived, in writing, demand, notice, and protest, delivered the note, so indorsed, to the agent of the plaintiffs, and received the sum of $10,000.

The complaint alleged that the transaction was a loan by plaintiffs to W. F. Owens; that the defendants executed the note for the accommodation of Owens, to enable him to procure the loan thereon; and that Owens was in fact a maker of said note to the plaintiffs, and never himself had any cause of action thereon against the defendants.

To this complaint the defendants demurred on the ground that it did not bring the case within the jurisdiction of the circuit court, and did not state facts sufficient to constitute a cause of action.

Upon argument this demurrer was overruled. 36 Fed. Rep. 484.

The defendants answered, denying the execution of the note and knowledge of the other facts alleged in the complaint. At the trial a verdict was given in favor of the plaintiffs for the amount of the note, with interest from date; and on June 19, 1889, judgment was entered on the verdict, in favor of the plaintiffs and against the defendants, for the amount of the note, with interest, and with costs and disbursements.

A writ of error was duly sued out and allowed, and the case brought into this court for review.

J. H. Mitchell, for plaintiffs in error.

[Argument of Counsel from pages 152-156 intentionally omitted]

L. B. Cox, for defendants in error.

Mr. Justice SHIRAS delivered the opinion of the court.