44 FEDERAL FACTORS, LN C. V. WELLBAN hE [1241 FEDERAL -FACTORS, INC,. V. WELLBANKE 5-3942 406 S. W. 2d 712 Opinion delivered September -19, 1966 [Rehearing denied October 24, 1966.] 1. BILLS & NOTES—NEGOTIABILITY, REFERENCE TO COLLATERAL MATTERS AS AFFECTING,—The mere reference to the transaction giving rise to Trade Acceptances containing all elements of ne-gotiability specified by the Uniform Commercial Code did not affect negotiability. [Ark. Stat. Ann. § 85-3-104 (Add. 1961).] o. BILLS & NOTES—RIGHTS OF HOLDER IN DUE COURSE—WEIGHT & SUFFICIENCY OF EVIDENCE.—In view of undisputed proof that the plaintiff was a holder in due course, it took the instruments free from the defenses relied upon by appellee. [Ark. Stat. Ann. § 85-3-305 (Add. 1961).] 3. APPEAL & ERROR—ANSWERS TO INTERROGATORIES—DETERMINATION UPON REMAND.—Unless the asserted extension of time for answering the interrogatories is proved upon remand, the interrogatories must be taken to have been admitted. Appeal from Conway Circuit Court, Russell C. Rob-erts, Judge ; reversed. Files, Davidson & Plaster and Paul Henson, for appellant. Guy H. Jones, for appellee.
ARK.] FEDER AL FACTORS, INC. C. WELLBANKE 45 GEORGE ROSE SMITH , Justice. The appellant, claiming to be a holder in due course, brought this action to enforce three i-ristruments, entitled Trade Acceptances, executed by the appellee Wellhanke mid by Richard J. Martin. Wellbanke contended that the instruments were not negotiable and that he was therefore entitled to interpose in his defense certain breaches of contract on the part of the drawer, Chemical Products, Inc. The trial court, sitting without a jury, sustained Wellbanke's contentions. Negotiability is now the main issue. In October 1962 Wellbanke and Martin signed a contract by whieh they beeame exclusive local dealers for Chemical Products. In the contract they agreed to purchase a quantity of merchandise, which was to be shipped to them for resale. At the trial Wellbanke testified that Chemical Products violated certain oral assurances that its agent had given, such as a promise to prepay the freight on the shipment and a promise not to transfer or assign the Trade Acceptances to anyone else. The three instruments, evidencing the unpaid purchase price, were alike except for serial numbers and dates of maturity. Apart from inessential matters such as the drawer's telephone number, the instruments were 'in this form: Chemical Products Incorporated Salt Lake City, Utah No. 687 October 5, 1962. On November 10, 1962 Pay to the order of Chemical Products Inc. Two Thousand Four Hundred Thirty-two aud vo/100 Dollars ($2,432.00). The transaction whieh gives vise to this instrument is the purchase of goods by the acceptor from the dra-wer. Chemical Products Inc. By Bob Chron Accepted at Conway, Ark. on Oct. 5, 1962. Payable at First National Bank
REV ISED 46 FEDERAL FACTORS, INC. V. WELLBANKE [241 Bank Location Conicau, Ark. Buyer's Signature Joe Wellbanke & Richard J. Martin Neither the trial court nor the appellee's attorney has suggested any reason for holding the instruments to be nonnegotiable. To the contrary, they contain all the elements of negotiability specified by the Uniform Commercial Code. Ark. Stat. Ann. 85-3-104 (Add. 1961). The mere reference to the transaction giving rise to the instruments does not affect negotiability. Trice v. People's Loon & mi. Co., 173 Ark. 1160, 293 S. W. 1037 (1927) ; Ark. Stat. Ann. c' ,) 85-3-119. In view of the undisputed proof that the plaintiff was a holder in due course it took the instruments free from the defenses relied upon by Wellbanke. Section 85-3-305. —Upon remand it is- possible -although—unlikel y ,- -that one other matter ma y arise. The appellant insists that the appellee's failure to answer requests for admissions of fact within ten days, as requested, had the effect of admitting the truth of the requests. Counsel for the ap-pellee states in his brief that he was given an extension of time -for'' answering the requests: No such extension, however, appears in the record. Unless the asserted extension is proved , the requests must be taken to have been admitted: Aik: Stat. Ann. 28-358; see White River Limestone Products Co. v. Missouri-Poe. R. R., 228 Ark. 697, 310 S_ W. 2d 3 (195E). In all probability, however, the negotiability of the Trade Acceptances makes this matter immaterial. Reversed.
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.