Ph&338nix Insurance Company v. . Church
New York Court of Appeals
Appeal from order of the General Term of the Court of Common Pleas of the city and county of New York, reversing an order of the General Term of the Marine Court of the city of New York which reversed a judgment in favor of plaintiff entered upon a decision of the court on trial without a jury. This action was brought upon a promissory note dated No vember 2, 1874, made by the defendant, payable to the order of one Worcester and indorsed by him.
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Appeal from order of the General Term of the Court of Common Pleas of the city and county of New York, reversing an order of the General Term of the Marine Court of the city of New York which reversed a judgment in favor of plaintiff entered upon a decision of the court on trial without a jury. This action was brought upon a promissory note dated No vember 2, 1874, made by the defendant, payable to the order of one Worcester and indorsed by him. Defendant set up, as a defense, that the note was accommodation paper, made for a specific purpose, that it was diverted by the payee, and was…
1Opinion of the CourtAndrews, J.
The fact that Faunce took the note in nominal payment of the debt of Brown, Pope & Co. did not constitute him a holder for value, so as to shut out the defense that the note has been wrongfully diverted by the payee from the purpose for which it was made. It is the settled law of this State, that prior equities of antecedent parties to negotiable paper transferred in fraud of their rights will prevail against an indorsee who has received it merely in nominal payment of a precedent debt, there being no evidence of an intention to receive the paper in absolute discharge and satisfaction beyond…
2Cases cited13 opinions
- Coddington v. BayCourt for the Trial of Impeachments and Correction of Errors · 1822
- McBride v. . the Farmers' BankNew York Court of Appeals · 1863
- Bank of Salina v. BabcockNew York Supreme Court · 1839
- Brown v. . LeavittNew York Court of Appeals · 1865
- Rosa v. BrothersonNew York Supreme Court · 1833
8 more not listed; retrieve them via the Exa API.
3Cited by49 opinions
- Fleischmann v. . SternNew York Court of Appeals · 1882
- Button v. . Rathbone, Sard Co.New York Court of Appeals · 1891
- Mayer v. . HeidelbachNew York Court of Appeals · 1890
- Dunham v. PetersonNorth Dakota Supreme Court · 1896
- First National Bank v. NelsonSupreme Court of Alabama · 1894
44 more not listed; retrieve them via the Exa API.