In the case of Kane vs Kroll, judge Myse concluded that all three
requirements of a holder in due course were met by Kane. Under
§ 403.302, STATSthethreerequirementsare,theholdermusttakethe
instrumentforvalue,ingoodfaith,andwithoutnoticethatitisoverdue
orhasbeendishonest(Kubasek et al., 2020). The court concluded
that, (1) Kane took the instrument from Kroll as payment for her son
debt, (2) the evidence provided from both parties shows no proof
against Kane taking the instrument in bad faith and (3) Kroll was
unable to prove that Kane had knowledge of claims or defenses.
The rules of law played into this case by having Judge Myse rule in
favor of Kane due to him meeting the three requirements of being a
holder. Judge Myse looked at the evidence at face value and stated
that the drawer having the power to stop payment on the check does
not constitute a defense that would stop Kane from being a holder.
In these rules of law, I do think that there could be ambiguities
present. In the first trial, the court ruled in favor of Kroll due to the
fact that they thought Kane did not prove he took the instrument in
good faith and without notice of graces defenses. When Kane
appealed, the second trial ruled in favor of him stating that he did
meet the requirements of holder. I think that the first court
misinterpreted the rules of law.
The ethical value that guided this conclusion is justice. Judge Myse
took a look at the three requirements under § 403.302, STATSand
found that they were met by Kane. I think that the conclusion from
this case is fair. There was no proof that Kane knew that Kroll’s son
was unable to pay back his mom. Even if Kane did know, I do not
think that it should affect his holding of the instrument. Kroll decided
to pay for the cows for her son and as a result Kane fulfilled his part
of the deal by giving them the cows. Kane is not responsible for the
son’s inability to pay back Kroll.
Reference
Kubasek, N., Browne, N. M., Herron, D., Dhooge, L., & Barkacs, L.
(2019). DynamicBusinessLaw (5th ed.). McGraw Hill.
