Semple v. Kyle [1902] ScotLR 39_304 (14 January 1902)

Semple v. Kyle [1902] ScotLR 39_304 (14 January 1902)

The pursuer was not a holder in due course because he took the cheque with notice of dishonour and of the condition attached to its grant. Parole evidence was admissible to prove the condition. The pursuer, not being a holder in due course, was subject to the same equities as the payee and could not recover on the cheque.

Citation
[1902] ScotLR 39_304
Parties
Pursuer and Reclaimer: Thomas Semple; Defender and Respondent: Thomas Kyle
Jurisdiction
Scotland
Judgment Date
14 January 1902
Procedural Posture
Civil Action (cheque Recovery) / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor
Outcome
appeal dismissed; decree of absolvitor (assoilzied) for defender affirmed
Legal Topics
Bills of Exchange, Cheques, Holder in Due Course, Parole Evidence, Conditional Delivery, Negotiable Instruments
Commercial Law Banking Law Bills of Exchange Cheques Holder in Due Course Parole Evidence Conditional Delivery Negotiable Instruments

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Parties

Thomas Semple

Pursuer and Reclaimer

Thomas Kyle

Defender and Respondent

Procedural Posture

Civil Action (cheque Recovery) / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether parole evidence is admissible to prove a condition attached to the granting of a cheque.
  2. 2 Whether the pursuer was a holder in due course under the Bills of Exchange Act 1882.
  3. 3 Whether the pursuer is affected by the condition attached to the cheque.

Ratio Decidendi

The pursuer was not a holder in due course because he took the cheque with notice of dishonour and of the condition attached to its grant. Parole evidence was admissible to prove the condition. The pursuer, not being a holder in due course, was subject to the same equities as the payee and could not recover on the cheque.

Court Disposition

appeal dismissed; decree of absolvitor (assoilzied) for defender affirmed

Orders

  • Defender assoilzied (absolved) from the conclusions of the summons.
  • Court adhered to the Lord Ordinary's interlocutor.