Story Case

The Province Bank accepted a bill due in thirty days, drawn on it by one of its depositors, in favor of Seymour Wallace. More than three months after the maturity of the bill, Wallace presented it for the first time, demanding interest at the stated rate for the whole period. The bank refused to pay more than the principal and interest for thirty days. When suit was brought, it was proved in court that the bank had met all demands in the course of its business promptly and would have paid this bill at its maturity if demanded. What should be the judgment of the court?

Ruling Court Case. Wolcott Vs. Von Santwood, Volume 17 Johnson Re-Ports, Page 248; Volume 8 American Decisions, Page 396

Saunder and Smith drew a bill of exchange upon Von Santwood, directing him, five months after date, to pay to Wolcott the sum of $2942. Upon presentment, Von Santwood accepted the bill. At maturity Wolcott sued upon this bill without presenting it to Von Santwood for payment.

It was insisted by Von Santwood that he should have been presented with the bill when it matured before action could be brought upon it.

Mr. Chief Justice Spencer said: "When a bill is drawn, payable at a particular place, and accepted, it is not necessary that a holder should show that he presented the bill to the acceptor at that place, in order that he may recover. The acceptor, like the maker of the note, is liable absolutely, and failure to present a bill for payment does not relieve him of such liability. But if he were ready and willing at such time to pay the bill, he is relieved of future interest, costs, and damages caused by the failure of the holder to present the bill for payment."

Ruling Law. Story Case Answer

The acceptor of a bill of exchange is regarded as the principal debtor, just as the maker of a note is regarded as the principal debtor of the note. Consequently, the acceptor is not discharged of his liability in respect to the bill by reason of the fact that the holder of the bill did not present it for payment on the day when it should have been paid. He, too, like the maker of a note, may show that he was ready and willing at the time and place appointed to pay the same, and if he does show this, he will be relieved of interest, and costs. Further, if damages have resulted because of the delay, the holder of the instrument must bear the loss.

The Province Bank is liable for the principal amount of the bill, and has no defense in that it was not properly presented for payment at maturity. But in view of the showing that it was ready and willing, at the proper time and place, to make the payment, it is not liable for interest after maturity. "Wallace should be given judgment for the amount of the bill with interest for thirty days, but without interest after maturity.