Bank of Services & Trusts v. Whitnack

GUITTARD, Justice.

John L. Whitnack sued Bank of Services & Trusts on certificate of deposit for $15,000 payable to Donald Carman and endorsed by Carman. The bank claimed the right to offset Carman’s debts against the certificate. Judgment was rendered on a verdict for Whitnack, and the bank appeals. The principal question is whether Whitnack is a “holder for value.”

Carman was a licensed securities broker. Whitnack owned 4,500 shares of stock in Securities Management Corporation, in which Carman and others were also interested. A lawsuit arose concerning the af*180fairs of the corporation, and a…