National Security Bank v. Cushman
Massachusetts Supreme Judicial Court
Contract by an indorsee on a promissory note signed by the defendant, payable to John P. Loring, and indorsed in blank, “ John P. Loring, by Wm. L. Lovell, attorney. Wm. L. Lovell.” Answer, that the note was procured to be signed by the fraudulent representations of Loring and of Lewis Coleman, a director in the plaintiff bank, and that the plaintiff had knowledge of the same.
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Contract by an indorsee on a promissory note signed by the defendant, payable to John P. Loring, and indorsed in blank, “ John P. Loring, by Wm. L. Lovell, attorney. Wm. L. Lovell.” Answer, that the note was procured to be signed by the fraudulent representations of Loring and of Lewis Coleman, a director in the plaintiff bank, and that the plaintiff had knowledge of the same. At the trial in the Superior Court, before Grardner, J., the jury returned a verdict for the plaintiff; and the defendant alleged exceptions, the substance of which appears in the opinion,
1Opinion of the CourtMorton, J.
The defendant, who is the maker of the note [n suit, offered to show that it was obtained of him by fraud, and that Coleman, one of the directors of the plaintiff bank, had knowledge of the fraud at the time the note was put in circulation. The court rejected this evidence, upon the ground that there was no evidence that Coleman took part in the action of the bank in discounting the note.
If there is fraud or illegality in the inception of a note, the burden of proof is upon the indorsee to show that he took it for value and in good faith before its maturity. Smith v. Livingston, 111 Mass.…
2Cases cited3 opinions
- Suit v. WoodhallMassachusetts Supreme Judicial Court · 1873
- Smith v. LivingstonMassachusetts Supreme Judicial Court · 1873
- Chambers v. KeeneCourt of Appeals of Kentucky · 1858
3Cited by50 opinions
- Atlantic Cotton Mills v. Indian Orchard MillsMassachusetts Supreme Judicial Court · 1888
- Innerarity v. Merchants' National BankMassachusetts Supreme Judicial Court · 1885
- Allen v. South Boston RailroadMassachusetts Supreme Judicial Court · 1889
- Goldstein v. Union National BankTexas Supreme Court · 1919
- Dundas v. City of LansingMichigan Supreme Court · 1889
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