First National Bank v. Warsaw Drug Co.
Supreme Court of North Carolina
Appeau by plaintiff from 0. H. Allen, J., at November Term, 1913, of DupliN. Tbis is a civil action tried upon these issues: 1. Is tbe plaintiff a corporation, as alleged in tbe complaint ? Answer: Yes (by consent). 2-, "Was tbe note sued on procured by,fraud and deceit of tbe Equitable Manufacturing Company? Answer: Yes. 3. Is tbe plaintiff the bona 'fide bolder of said note in due course? Answer: No. 4. Is the defendant indebted to the plaintiff, and if so, what amount?…
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Appeau by plaintiff from 0. H. Allen, J., at November Term, 1913, of DupliN. Tbis is a civil action tried upon these issues: 1. Is tbe plaintiff a corporation, as alleged in tbe complaint ? Answer: Yes (by consent). 2-, "Was tbe note sued on procured by,fraud and deceit of tbe Equitable Manufacturing Company? Answer: Yes. 3. Is tbe plaintiff the bona 'fide bolder of said note in due course? Answer: No. 4. Is the defendant indebted to the plaintiff, and if so, what amount? Answer: Nothing. From the judgment rendered, the plaintiff appealed.
1Opinion of the Court
BeowN, I.
The principles of law presented on this appeal have been so frequently adjudicated that a further discussion of them would seem to be useless.
Where the maker of a negotiable paper establishes that it has been obtained from him by fraud or deceit, a subsequent transferee must, before he is entitled to recover thereon, show that he is the bona fide purchaser, or that he derived his title from such a purchaser. It is not sufficient to show simply that- he purchased before maturity and paid value, but he must show that he had no knowledge or notice of the fraud. Bank v. Fountain, 148 N.…
2Cases cited5 opinions
- American National Bank v. FountainSupreme Court of North Carolina · 1908
- Third National Bank of St. Louis v. ExumSupreme Court of North Carolina · 1913
- Merchants National Bank v. BransonSupreme Court of North Carolina · 1914
- Fidelity Trust Co. v. EllenSupreme Court of North Carolina · 1913
- Myers v. PettySupreme Court of North Carolina · 1910
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