{
  "id": 1562569,
  "name": "Haglin v. Friedman",
  "name_abbreviation": "Haglin v. Friedman",
  "decision_date": "1915-05-17",
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  "first_page": "465",
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  "last_updated": "2023-07-14T17:53:29.321926+00:00",
  "provenance": {
    "date_added": "2019-08-29",
    "source": "Harvard",
    "batch": "2018"
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  "casebody": {
    "judges": [],
    "parties": [
      "Haglin v. Friedman."
    ],
    "opinions": [
      {
        "text": "\u25a0Smith, J.\nAppellant was the plaintiff below, and sued appellee on a note executed by him to the order of appellant for the sum of $500. The note was dated March 12, 1912, and was payable six months after date. The execution of \"the note was admitted, but appellee alleged in his answer that its execution had been procured by fraud and that the note was void for lack of consideration. In support of these defenses appellee offered 'evidence \u00a1to the effect tihat the Arkansas Valley Trust Company, as executor of the estate of one Dave Mayo, was selling the saloon and restaurant fixtures of the estate. The sale had been advertised and sealed bids invited, and appellee had put in a bid. . The fixtures were located in a building owned by appellant, 'and there was an outstanding contract for the lease of this building between Mayo and appellant, and Mayo\u2019s executor was anxious to make a disposition of the fixtures, which would relieve the estate from liability on account of the lease. That appellant represented to appellee that he would use his influence with the executor of the Mayo estate to have appellee\u2019s bid accepted, and that he would consent for appellee to take an assignment of the lease upon the terms agreed upon\u2019in the contract for the lease made with Mayo, and that in consideration of this promise appellee executed the note sued on, whereas appellant had already agreed with the representative of the trust company for t'he substitution of appellee as a tenant, and further that the executor had opened the bids,' and had ascertained that appellee\u2019s bid was the highest \u25a0bid received, and that the trust company had already determined to accept appellee\u2019s bid.\nThere were several sharply drawn questions of fact in the case, but the verdict of the jury is decisive of those questions.\nThe transaction upon which the note was based took place in August, 1908, and the note then given was renewed from time to time and the interest paid thereon, \u2022and the last of the notes so executed is the one now \u25a0sued on.\nVarious exceptions were saved to the action of the court in giving and refusing instructions; but the court in effect told the jury that if the facts were found to be us herein stated a verdict should be returned in favor oif appellee, and the verdict was so returned.\nIt is undisputed, however, that .appellee bought.the fixtures and took possession of the building and occupied it in accordance with the terms of the contract for the lease; and it is also undisputed that appellee was advised, immediately .after executing the first note, of all the facts here stated. Thereafter the note was frequently renewed.\nThe effect of renewing a note which was void for the want 'of consideration was considered by this court in the case of Stewart v. Simon, 111 Ark. 358, and the authorities were (there reviewed, .and 'the law was stated to be that the defense of failure of \u25a0consideration was not available to one who, with knowledge of the failure \u25a0of the consideration for the original note, thereafter \u25a0executed a renewal note.\nApplying the principal.there stated to the facts of this case it follows that a verdict should have been directed in appellant\u2019s favor, and the judgment of the court below will be reversed and judgment will be entered here for appellant for the amount of the n\u00f3te and the interest thereon.",
        "type": "majority",
        "author": "\u25a0Smith, J."
      }
    ],
    "attorneys": [
      "Geo. W. Dodd, for appellant.",
      "Pryor <& Miles, for appellee."
    ],
    "corrections": "",
    "head_matter": "Haglin v. Friedman.\nOpinion delivered May 17, 1915.\nBills and notes \u2014 failure of consideration \u2014 renewal.\u2014-The defense of failure of consideration is not available .to .one who, with knowledge of the failure of f,1the 'consideration, for 'the original note, thereafter executed a renewal note.\nAppeal from -'Sebastian Circuit 'Court, Fort Smith District; Daniel Hon, Judge;\nreversed.\nGeo. W. Dodd, for appellant.\n1. The defense of lack of consideration and fraud was not established. The burden was on defendant, for \u25a0fraud is never presumed; it must be proven. 92 Ark. 509; 78 Id. 87; 77 Id. 355; 38 Id. 419. The note imports a consideration. Recovery is not defeated by mere inadequacy of consideration. 99 Ark. 238; 138 <S. W. 457; 8 Ark. 131.\n2. The consideration was proven. It need not pass to the maker of the note; it may pass from the payee to a third party. 40 Ark. 69. A benefit to the promisor or a detriment or loss to the promisee is sufficient. 9 Cyc. 308, and note 66; 7 Id. 691; lb. 702, and cases, note; 25 Ala. 483; 33 Ind. 184; 22 N. H. 246.\n3. The court erred in refusing instructions requested. A general instruction defining consideration was not sufficient. 98 Ark. 455; 131 S. W. 960; 80 Ark. 454; 84 Id. 74.\n4. Forbearance in collection; extension of time for payment and renewal of a note are sufficient consideration, even where there was an original failure in part. 7 Cyc. 721; 89 Ark. 132; 115 S. W. 1141.\nPryor <& Miles, for appellee.\n1. The note was secured by fraudulent representations and it was void for lack of consideration. 97 Ark. 265.\n2. The note was void and a renewal would not impart any consideration whatever. The question of estoppel and laches are equitable defenses. This was a \u25a0suit at law.\n3. The court properly instructed the jury. Their verdict is decisive of the questions of fact."
  },
  "file_name": "0465-01",
  "first_page_order": 487,
  "last_page_order": 489
}
