Woolf v. Clarke

Action upon Note bt Assignee op Pledgee—Plea op Want op Consideration—Bona Fide Pledge—Mistake in Interest—Correction by Plaintiff.—In an action upon a note by an assignee of a pledgee thereof from the payee before maturity, which the pledgee took without notice of an alleged want of consideration pleaded by the maker as against the payee, it is held that the maker made little or no proof in support of such plea, and that the mere fact that the note purported to bear interest at the rate of six per cent per month instead of per annum was not of itself sufficient to charge the pledgee with notice of any equities, where it is shown that the payee understood and believed that the note bore six per cent per annum, and the plaintiff in his complaint alleged that it was so intended, and took judgment at the rate of only six per cent per annum.

Id.—Duty of Pledgee to Pledgor to Enforce Note — Bights of Maker not Involved.—It was the duty of the-pledgee, as against the pledgor, to hold and collect the note when due, and yield to the pledgor any surplus proceeds of collection over and above the amount of the pledge. He had no right, as to him, to sell the note; and doubtless an unauthorized sale would constitute, as to •the pledgor, a conversion of the instrument. But section 3006 of the Civil Code, so providing, was designed for the benefit of the pledgor; and the maker of the note, whose rights were in no way prejudiced by the action of the assignee of the pledgee, cannot be heard to complain of such action or of the judgment rendered ■therein.