Crosbie v. Crosbie's Trustees [1900] ScotLR 38_88 (07 November 1900)

Crosbie v. Crosbie's Trustees [1900] ScotLR 38_88 (07 November 1900)

Parole evidence is admissible to establish the true relationship and liability between joint acceptors of a bill of exchange, particularly where one acted as cautioner and paid the full amount for the benefit of the other. The claimant is entitled to rank for the sums paid, as the underlying debt was due to her and the bankrupt received the benefit. This conclusion is reached independently of section 100 of the Bills of Exchange Act 1882.

Citation
[1900] ScotLR 38_88
Parties
Appellant/claimant: Mrs Sarah M'Adam or Crosbie; Bankrupt/respondent: Robert Crosbie; Trustee on Sequestrated Estate: Henry Hay Brown, C.A., Edinburgh
Jurisdiction
Scotland
Judgment Date
07 November 1900
Procedural Posture
Appeal in Bankruptcy (sequestration) Proceedings / Appeal to Court of Session, Inner House, First Division
Outcome
Appeal sustained. Lower court's interlocutor and trustee's deliverance recalled. Claimant to be ranked and preferred, with interest on the £250 bill restricted to interest on £200. Respondent liable in expenses.
Legal Topics
Bills of Exchange, Joint Acceptors, Liability Inter Se, Parole Evidence, Proof of Payment, Relief Between Co Obligants
Bankruptcy Commercial Law Bills of Exchange Joint Acceptors Liability Inter Se Parole Evidence Proof of Payment Relief Between Co Obligants

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Parties

Mrs Sarah M'Adam or Crosbie

Appellant/claimant

Robert Crosbie

Bankrupt/respondent

Henry Hay Brown, C.A., Edinburgh

Trustee on Sequestrated Estate

Procedural Posture

Appeal in Bankruptcy (sequestration) Proceedings / Appeal to Court of Session, Inner House, First Division

Legal Issues

  1. 1 Whether parole evidence is admissible to prove the true relationship and liability between joint acceptors of a bill of exchange in bankruptcy proceedings.
  2. 2 Whether the claimant is entitled to rank for the full amount of the bills based on her payment and the underlying transactions.

Ratio Decidendi

Parole evidence is admissible to establish the true relationship and liability between joint acceptors of a bill of exchange, particularly where one acted as cautioner and paid the full amount for the benefit of the other. The claimant is entitled to rank for the sums paid, as the underlying debt was due to her and the bankrupt received the benefit. This conclusion is reached independently of section 100 of the Bills of Exchange Act 1882.

Court Disposition

Appeal sustained. Lower court's interlocutor and trustee's deliverance recalled. Claimant to be ranked and preferred, with interest on the £250 bill restricted to interest on £200. Respondent liable in expenses.

Orders

  • Recall interlocutor of Sheriff-Substitute dated 15th June 1900 and trustee's deliverance dated 4th April 1900.
  • Remit to trustee to rank and prefer claimant in terms of her claims, with interest on £250 bill restricted to interest on £200.