Reiss v. Velleman & Co.

The plaintiff’s assignor indorsed a promissory note of the defendant and paid it at maturity. This action is brought to recover from the maker the amount so paid. The defense is a charge of fraud arising out of a compromise with creditors. The note was for $4,400, dated January 2, 1919, payable May 3, 1919, signed by the defendant as maker, indorsed by the plaintiff’s assignor and discounted with the Citizens’ National Bank. David Krauskopf, the plaintiff’s assignor, was president of the defendant at the time both of the indorsement and of the payment of the note. Before the note became due…