Court Opinion

ID: 9579646
Source: CourtListenerOpinion
Date Created: 2023-08-21 21:57:03.9489+00
Date Added: 2024-06-11T13:35:38.804204
License: Public Domain

On Plaintiff’s Motion for Rehearing.
Hall, Judge.
The plaintiff contends that, even assuming that there was a jury question whether the bank held the note for collection or as a bona fide holder in due course, a verdict was nevertheless demanded for the plaintiff on count I because the defendant’s evidence was insufficient to prove a defense of total or partial failure of consideration. We recognize the authorities to the effect that to support a defense of partial failure of consideration there must be evidence introduced showing the extent to which the consideration has failed. Hornsby v. Butts, 85 Ga. 694 (11 SE 846); Clegg-Ray Co. v. Indiana Scale &c. Co., 125 Ga. 558 (54 SE 538). Accordingly, to establish its defense of partial failure of consideration based on cancellation of the insurance for which the note was given, the defendant had to prove the term and the annual premium on the insurance and the period of time the policy was in effect prior to cancellation. There was evidence at the trial from which a jury could find that the note was given to Ryals Insurance Agency for annual premium on insurance for a term of one year from April 5, 1960; that the insurance was canceled by notice dated January 16, 1961, effective January 26, 1961; that of the $1,536.80 original amount of the note $1,449.80 was principal and $87 was interest, the principal having been deposited by the bank to the account of Ryals Insurance Agency. From this data the amount of the unearned insurance premium could be calculated.

Rehearing denied.

Carlisle, P. J., and Bell, J., concur.