W. B. TOWLES, TRUSTEE,
v.
DENISE AZAR, ET VIR.

Fla. | 1933-10-19
Whitfield, Ellis, Terrell, Brown and Buford, J. J.,‘ concur.
112 Fla. 405 Florida Supreme Court (1933) Positive Treatment
Also reported at: 150 So. 734
Cited by 18 cases

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Synopsis

This case clarifies the burden of proof in a promissory note lawsuit when the defendant pleads failure of consideration. The court held that the defendant must properly "impeach" the note under oath, not just file a standard sworn plea, to shift the burden of proof to the plaintiff.


Holding

The court held that the defendant must "impeach" the note under oath, meaning the defendant or someone with knowledge of the facts must swear to the lack of consideration. A plea sworn to by an attorney on information and belief is insufficient to shift the burden of proof to the plaintiff.


Key Quotes

“in a suit on a promissory note, while consideration for the note is' presumed (Section 6784 C. G. L., 4698, R. G. S.), yet in cases where the defendant properly pleads failure of consideration, as an excuse for not paying the note sued on, the burden is on the plaintiff to offer some proof of a consideration for the note sued on, where all consideration therefor is duly impeached under oath of the maker as provided by Section 4330, C. G. L., 2664 R. G. S.”

This quote outlines the general rule regarding the burden of proof when failure of consideration is properly pleaded and impeached.

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Facts & Procedural History

The plaintiff sued on a promissory note, and the defendant pleaded failure of consideration, alleging fraud by the original payee in a real estate sal…

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Opinion of the Court
Davis, C. J.

Davis, C. J.

This case, a suit at law on a promissory note, was submitted to a jury on the issue of failure of consideration set up by the pleas of the defendant. The contention at the trial was that fraud had been perpetrated upon the defendant by the original payee of the note, a vendor, in connection with the sale of certain real estate to the note’s maker, the defendant below. The jury’s verdict was in favor of the defendant, Towles. New trial was granted and defendant, takes writ of error under Section 4615 C. G. L., 2905 R. G. S.

The only proposition of law "necessarily involved in the decision of this case is whether or not, in the face of a plea *406of failure of consideration of the promissory note, the burden of proof was on the defendant or the plaintiff under the plea. That question was discussed, but not necessarily involved in the decision in the case of Colt v. Gainey, 102 Fla. 1065, 136 Sou. Rep. 698.

Our view is that, in a suit on a promissory note, while consideration for the note is' presumed (Section 6784 C. G. L., 4698, R. G. S.), yet in cases where the defendant properly pleads failure of consideration, as an excuse for not paying the note sued on, the burden is on the plaintiff to offer some proof of a consideration for the note sued on, where all consideration therefor is duly impeached under oath of the maker as provided by Section 4330, C. G. L., 2664 R. G. S. See: Wilson v. Maddox, 97 Fla. 489, 121 Sou. Rep. 805; Davis v. Leighton, 80 Fla. 594, 86 Sou. Rep. 564. Compare: Powell v. English, 97 Fla. 861, 122 Sou. Rep. 217.

But before the rule putting the burden of proof on the plaintiff can apply, the consideration for the note sued on must, in accordance with Section 4330 C. G. L., 2644 R. G. S., be “impeached by the defendant under oath.” The phrase “impeached by the defendant under oath,” as used in Section 4330 C. G. L., supra, means that the oath of the defendant himself as' to the truth of the facts pleaded, must afford the basis for such impeachment and not merely an oath of the defendant’s attorney to the defendant’s' pleas be relied on for that purpose.

This Court has held that under Section 4318, C. G. L., 2652 R. G. S., requiring all pleas to be sworn to, either by the defendant, or his agent or attorney, the ordinary oath to pleas can be made on the basis of the affiant’s information and belief that the pleas are true. State v. Sumter County Com’rs, 22 Fla. 1. And indeed, if any more strict *407rule were recognized, defendants could only plead contradictory defenses as authorized by Section 4320 C. G. L., 2654, R. G. S., at the risk of prosecution for perjury. The oath to pleas such as is required by Section 2652 C. G. L., supra, is accordingly regarded as nothing more than an evidence of good faith, that is, pleas are permitted to be sworn to by defendants or their attorneys under that section, solely on the basis of their information and belief that the pleas are proper pleas to be presented in support of the facts upon which defendant relies for his defense.

But under Section 4330 C. G. L., 2664 R. G. S., there is required the responsible oath of the defendant himself or of someone in his behalf, who has knowledge of the particular facts relied on, to constitute an “impeachment” of the note sued on for want of consideration, when want of consideration is pleaded as' a defense. This is so because under the statutes of this State consideration for negotiable notes is presumed (Section 6784, C. G. L., 4698, R. G. S.), while under Section 6788, C. G. L., 4702, R. G. S., failure of consideration is made a matter of defense against any person not a holder in due course, which matter of defense must, under Section 4330 C. G. L., 2664 R. G. S., be pleaded by the defendant in the form of an “impeachment under oath” of the negotiable note for want of consideration.

In this case the consideration for the note sued on was not “impeached” under the defendant’s oath, in the manner and form required by the statute. Therefore a consideration for that note must be presumed under Section 6784 C. G. L., supra, as against an ordinary plea of failure of consideration sworn to by defendant’s attorney only as a mere matter of verification of the plea. Failure to impeach the consideration under oath accordingly put the bur*408den of proving .the plea of failure of consideration on the defendant as a matter of affirmative defense. This burden, in this case, was not met by defendant, in whose favor the verdict was rendered, therefore the Court was not in error in-granting the pláiritíff a new trial.' The order granting a 'new trial is therefore affirmed and' the cause remanded for further appropriate proceedings.

Affirmed and remanded.

Whitfield, Ellis, Terrell, Brown and Buford, J. J.,‘ concur.


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Citator

Cited By

  • Cheek v. McGOWAN Elec. Supply Co., 404 So. 2d 834 (Fla. 1st DCA 1981)
    …la. 2nd DCA 1977), that as between the original parties to a negotiable instrument, fraud may be set up as a defense against liability on the instrument. Failure of consideration is a long recognized defense to a promissory note. See Towles v. Azar, 112 Fla. 405, 150 So. 734 (1933). Mistake is a recognized basis for equitable relief. See 9 Fla.Jur.2d, Cancellation, § 29 (1979). This is especially true where the maker seeks not only cancellation and rescission but recovery of amounts paid in the excess of t…
  • Mayflower, Inc. v. Suskind, 112 So. 2d 394 (Fla. 3d DCA 1959)
    …statute which deprives a defendant from asserting want of consideration as an affirmative defense (by an answer not under oath) and assuming the burden of establishing such affirmative defense by a preponderance of the evidence. See Towles v. Azar, 112 Fla. 405, 150 So. 734. Thus the pleadings presented an issue relating to consideration on which the defendant had the burden of establishing a want of consideration by a preponderance of the evidence. On that record, judgment on the pleadings was improper.…
  • Barnes v. Boulevard Nat'l Bank OF Miami, 124 So. 2d 494 (Fla. 3d DCA 1960)
    …n action on a note, the defense of want of consideration is usually treated as an affirmative defense and must be proven by the defendant, unless all consideration is impeached under oath as provided by § 52.08, Fla.Stat., F.S.A. See Towles v. Azar, 112 Fla. 405, 150 So. 734; Mayflower, Inc. v. Suskind, Fla.App.1959, 112 So. 2d 394. There is no presumption that a signature appearing upon an instrument is genuine and the rule appears to be that the burden of proving the genuineness of the defendant’s signat…

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