NOTICE OF DISHONOR. A notice given to a drawer or indorser of a bill, or an in dorser of a negotiable note, by a subsequent party, that it. had been dishonored either by non-acceptance in the case of a bill, or by non-payment in the case of an accepted bill or a note.
The subject is provided for in almost all the states by the Uniform Negotiable Instru ments Act (See NEGOTIABLE INSTRUMENTS); the old cases are, however, retained as having at least historical interest.
Notice of dishonor by non-acceptance or non-payment roust be given to the drawer and to each indorser, and any drawer or indorser to whom notice is not given is dis charged; Neg. Instr. Act.
The notice must contain a description of the bill or note ; Housatonic Bk. v. Laflin, 5 Cush. (Mass.) 546: Kilgore v. Bulkley, 14 Conn. 362; Spann v. Baltzell, 1 Fla. 301, 46 Am. Dec. 346; Brewster v. Arnold, 1 Wis. 264; sufficient to leave no doubt in the mind of the indorser, as a reasonable man, what note was intended ; Gilbert v. Dennis, 3 Metc. (Mass.) 495, 38 Am. Dec. 329; Craw ford v. Bank, 7 Ala. 205; Youngs v. Lee, 12 N. Y. 551; Bradley v. Davis, 26 Me. 45 ; Mills v. Bank, 11 Wheat. (U. S.) 431, 6 L. Ed. 512; Dodson v. Taylor, 56 N. J. L. 11, 28 Atl. 316.
It must also contain a clear statement of the dishonor of the bill ; 2 Cl. & F. 93; 2 M. oc W. 799; Gilbert v. Dennis, 3 Metc. (Mass.) 495, 38 Am. Dec. 329; Lockwood v. Crawford, 18 Conn. 361 ; and something more than the mere fact of non-acceptance br non-payment must be stated ; 2 Q. B. 388; Mills v. Bank, 11 Wheat. (U. S.) 431, 6 L. Ed. 512; Boehme v. Carr, 3 Md. 202; Nailor v. Bowie, id. 251; Chewning v. Gatewood, 5 How. (Miss.) 552; except in some cases ; Housatonic Bk. v. Laflin, 5 Cush. (Mass.) 546; Graham v. Sangston, 1 Md. 59 ; Hunter v. Van Bom horst & Co:, id. 504; see as to effect of the use of the word protested, Mills v. Bank, 11 Wheat. (U. S.) 431, 6 L. Ed. 512; Crawford v. Bank, 7 Ala. 205 ; Kilgore v. Bulkley, 14 Conn. 362; Housatonic Bk. v. • Laflin, a Cush. (Mass.) 546.
As to whether there must be a statement that the party to whom the notice is sent is looked to for payment, see 11 M. & W.
372; 7 C. B. 400.
Notice "may be given in any terms which sufficiently identify the instrument" and in dicate that it has been dishonored; a mis description does not vitiate the notice unless the party has been misled thereby ; Neg. Instr. Act.
The notice is generally in writing, but may be oral; Woodin v. Foster, 16 Barb. (N. Y.) 146; Gilbert v. Dennis, 3 Metc. (Mass.) 495, 38 Am. Dec. 329; Glasgow v. Pratte, 8 Mo. 336, 40 Am. Dec. 142 ; 8 C. & P. 355. So • in the Neg. Instr. Act.
It need not be personally served, but may be sent by mail ; 7 East 385; Bussard v. Levering, 6 Wheat. (U. S.) 102, 5 L. Ed. 215; Commercial Bk. v. Strong, 28 Vt. 316, 67 Am. Dec. 714; Walters v. Brown, 15 Md. 285, 74 Am. Dec. 566 ; otherwise, perhaps, if the parties live in the same town ; see Peirce v. Pendar, 5 Mete. (Mass.). 352; Ireland v. Kip, 10 Johns. (N. Y.) 490; Manchester Bk.
v. Fellows, 28 N. H. 302 ; Remington v. Har rington, 8 Ohio 507; Brown v. Bank, 85 ya. 95, 7 S. E. 357; or left in the care of a sttita ble person, representing the party to be noti fied; Miles v. Hall, 12 Smedes & M. (Miss.) 332; Cook v. Renick, 19 Ill. 598; Isbell v. Lewis, 98 Ala. 550, 13 South. 335.
It may be sent through the mails or de livered in person ; it may be left with the party's agent. If he is dead, the notice should be given to a personal representative, and if there is none, it should be sent to the last residence or place of business of the de ceased. Notice to one partner is sufficient, even though there has been a dissolution. Notice to joint parties must be given to each of them. Notice to a bankrupt can either be given to the bankrupt himself or to his trustees or assignees ; Neg. Instr. Act.
It should be sent to the place where it will most probably find the party to be notified most promptly ; Bank of Columbia v. Law rence, 1 Pet. (U. S.) 578, 7 L. Ed. 269 ; wheth er the place of business ; Hyslop v. Jones, 3 McLean 96, Fed. Cas. No. 6,990; Ireland v. Kip, 11 Johns. (N. Y.) 231; Green v. Darling, 15 Me. 139 ; 1 Maule & S. 545 ; or place of residence; Commercial Bk. v. Strong, 28 Vt. 316, 67 Am. Dec. 714.