Case Name: Henry BERNSTEIN v. John W. WILLIS, Jr.
Court: Louisiana Supreme Court
Jurisdiction: Louisiana
Decision Date: 1929-02-11
Citations: 167 La. 1031
Docket Number: No. 28071
Parties: Henry BERNSTEIN v. John W. WILLIS, Jr.
Judges: THOMPSON, J., takes no part.
Reporter: Louisiana Reports
Volume: 167
Pages: 1031–1031

Head Matter:
(120 So. 636)
No. 28071.
Henry BERNSTEIN v. John W. WILLIS, Jr.
Feb. 11, 1929.
George Wesley Smith, of Rayville, for appellant.
Hudson, Potts, Bernstein & Sholars, of Monroe, foi; appellee.

Opinion:
O'NIELL, O. J.
The defendant has appealed from a judgment rendered against him on two promissory notes, for $1,500 each, secured by mortgage. His defense was that, having signed the notes and mortgage for the purpose of using them as collateral security, he left them with one J. V. Hemler for safe-keeping, in an iron safe used by Hemler, and that Hemler abstracted and used the notes without defendant's knowledge; and that Hemler was, when he negotiated the notes, in such a mental condition as the result of excessive drinking of alcoholic liquor, and perhaps the use of drugs, that he was incapable of transacting business.
The fact is that Hemler pledged the notes, in lieu of a bond, to secure the faithful performance of a contract on his part, and forfeited the notes as stipulated damages for failure to fulfill his obligations under the contract. The evidence does not sustain the allegation that Hemler was mentally incapable of transacting business when he negotiated the notes. The notes were negotiable instruments — in fact, they were payable to the order of the maker and indorsed by him— and, as the plaintiff acquired them in due course and for a valuable consideration, he is entitled to collect the amount.
The judgment is affirmed.
THOMPSON, J., takes no part.