Valette v. Mason
Indiana Supreme Court
ERROR to the Dearborn Circuit Court. Assumpsit, by an assignee against the makers of a promissory u note governed by the law merchant.
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ERROR to the Dearborn Circuit Court. Assumpsit, by an assignee against the makers of a promissory u note governed by the law merchant. The defendants pleaded, inter mi.alia, .that the note was assigned to the plaintiff only as collateral se- ■ 1 curity for certain money lent and advanced by him to the payees; ■kthat said payees had, before 1 he commencement of the suit, fully ■Í; repaid the plaintiff the money so lent, and that the defendants had paid the payees without notice of the endorsement. To this plea there was a replication, admitting that the note was endorsed to the plaintiff as…
1Opinion of the CourtSmith, J.
— “There can be no doubt that, according to the authorities, the holder of commercial paper, assigned as collateral security, is entitled to be regarded as a holder for a valuable consideration, and is not bound by equities existing between the payee and the makers which would interfere with the collection of hi#, debt; but in a suit on such paper he is not entitled to recover more than the debt actually due to him, if any part of it has been previously paid, or there is no good consideration as between the original parties. Williams v. Smith, 2 Hill, 301. If the plaintiff should recover, in…
2Cited by1 opinion
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