Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-09-24
OFFICIAL.
Opinions of the Supreme Court Of TenneS-
see, delivered at JacksOns at April Term,

sec, delivered at JACKSON, az April Tsrm,
GREEr and others vs.. BOSD.
This was an action of assumpsit, brought in the
Circuit Court Of Haywood By the defendant in error
as indorsee OF bill Of exchange, against the draw
ers and endOIsers. -.-..- ..
The bill was drawn in Tennessee (of which State
both the drawer an3 endorsers were eitizens) on
Messrs J. sc CromEell, of New Orleans Louisiana,
for S25OO 90, at four months from date
The bill was regularly protested, at maturity, for
non payment, for Of funds Of the drawer and
due notice Of the dishOnOr thereof given to the
drawers and endorsers
On The trial in he Court below, the defendants
proposed 10 prove that the legal rate Of interest in
Louisiana was hve per cent, and insisted hat the
plaintiff was entitled 70 recover no more. But The
Court refused to admit the evidence snd instructed
the jury that the plaintiff entitled to recover six
per cent interest," according to the laFef Tennessee
And the only question presented for our determina-
lion, is, did the Court err in this Instruction.
For the plaintiin error it is assumed, that as the
bill was 70 have been accepted and paid ct New
Oreans the law Of that pLaos should govern the rate
Of interest to be awarded in the present action
This is not 50, either upon proper construction Of
statute Of 1921 eh. IA, upon the Weil-estab-
lished principles Of Mercantile law
The general principle is admitted, that the obhga-
ton, character, extent, and conditions Of every
contract are to be governed by the law Of The place
this principle is misappled in the argument for the
plaintiff. The error is, in not distinguishing be-
tween the contract Of the drawer, eBdOrser, and
the contract Of the aeeeptoF. The drawer Of the
bill does not contract topay the money in the foreign
place on which the bill is drawn. Neither does the
endorser They respectively contract only to guar
antee its acceptance and payment in that place By
the draWee; aud in default Of such payment BY the
latter, they sgree upon due protest and notice, to
reimburse the holder Of the bin in principal and
damages at the place where they seTersliy entered
into the contract The aceept0r on his part, il is
true contracts 10 pay the bill the place Of accept
anee, or the place fixed for the payment thereof;
but the contract Of the latter separate and distinct
from the contract Of the drawer, or endorser. The
draWer and sndorser, in legal eonte temPlaton, con-
tract in place where the bill Is drawn or endorsed
g conditional obligation that if the billis dishonor
ed and due notice thereof given them, they will
respectively pay the amount Of the bill, st hePlsce
of ftheir contract.
The contract Of each Of the psriies-the drawer,
endorser, and accsptor is, in effect, several
tract msde in the place where the bin is drawn,
endorsed or aceepted and the rights as well as the
liabilities Of each party are TO be regulated and
governed by the law Of the place Of his contract.
Story on Bills, Sec 153, l54, 155, 391.
Siory's Conflict Of Laws Sec 3l4-l5.
Alabama r., (NeW SeFies) p. p
The act Of 1929, eh- "A, sec l, necessarily leads
to the same result Il expressly provides thst when
bill Of exchange, drawn or endorsed within this
State, upon any person or persons, or body cor
porate Of or in any Of the United States the ter
ritores thereof, shall be returned unpaid, with
legal protest" the holder shall be entitled 70 reeOv
er from the drawer ndorser, Of such bill, three
per cent damages upon the amount Of such bill, TO-
gether with lawfal iRtrsst on the amount Of such
principal sum, damages, and charges Of protest
from the time such notice Of protest shall have been
given"
TIE sole effect Of this statute was 70 regulate and
define the liabilities of the drawer and endOrser Of
bill of exchange in case like the one under eonsid
GRAFTON; and, by necessary Implication, it must be
held that by a1ri interest the Legislature had re-
ference to the rate Of interest established By law IN
this STATE in whose Judicial tribunals the remedy is
to be pursued. ...r.a .
We Of opinion therefore, that there is error
in the Judgment and it will be affirmed
... = MCKEEEY.
Test NJ d. WELCH, Clerk.