Title
C. Heinszen and Co. vs. Jones
Case
G.R. No. 2028
Decision Date
Sep 16, 1905
Plaintiffs sued defendant over unpaid promissory note; defendant denied execution and payment. Lower court struck answer as "sham," but Supreme Court reversed, citing failure to deny execution under oath. Case remanded.
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Case Summary (G.R. No. 2028)

Case Overview

This case involves a dispute between C. Heinszen & Co. (Plaintiffs/Appellees) and Henry M. Jones (Defendant/Appellant) regarding the execution and payment of a promissory note. The lower court's judgment favored the plaintiffs, leading the defendant to appeal.

Defendant's Answer

  • Legal Principle: The defendant's answer denied all allegations in the complaint, particularly contesting the execution of the promissory note.
  • Key Definitions:
    • Promissory Note: A financial instrument wherein one party promises to pay another party a specified sum of money.
  • Requirements:
    • The defendant claimed he could not recall the specifics of the promissory note and denied having signed it, either personally or through an authorized representative.
    • He asserted that if he had signed the note, it was done under the premise of accommodating the payee, without any value being exchanged.

Court's Action and Judgment

  • Legal Principle: The lower court struck out the defendant's answer as "sham" under Section 107 of the Code of Civil Procedure, resulting in a judgment for the plaintiffs.
  • Important Procedural Notes:
    • The court based its decision on the absence of evidence from the plaintiffs to substantiate their claim regarding the indorsement of the note.
    • The appeal was made following the lower court's judgment and the striking out of the defendant's answer.

Appeal Analysis

  • Legal Findings:
    • The appellate court disagreed with the lower court’s decision to strike the answer entirely, emphasizing that the defendant's denial of the execution of the note did not extend to the indorsement.
    • The court clarified that the defendant was not required to deny the indorsement under oath since the action was based on the promissory note itself, not the indorsement.
  • Key Timeframes:
    • Following the expiration of twenty days post-judgment, the court ordered that judgment should be entered in accordance with its findings.

Conclusion and Orders

  • Judgment Reversal: The appellate court reversed the lower court's judgment and the order striking out the answer as sham.
  • Further Proceedings: The case was remanded for further proceedings consistent with the law.
  • Cost Implication: No costs were to be awarded to either party in the appellate court.

Key Takeaways

  • The appellate court emphasized the importance of properly addressing each element of a legal complaint and the need for evidence to support claims, particularly regarding the execution and indorsement of financial instruments.
  • A cl
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