Foley v. Smith
Supreme Court of the United States
Error to the Circuit Court for the Eastern District of Louisiana. , Mrs. Smith, the appellee, having sold to McHatton a plantation in the parish of East Baton Rouge, received from him notes for $70,000 of the purchase-money, secured by a mortgage on the property sold. One of these notes for the sum of $15,000 was placed by Mrs. Smith before due in the Bank of Kentucky for collection, and that bank forwarded it for the same purpose to the Citizens’ Bank of New Orleans.
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Error to the Circuit Court for the Eastern District of Louisiana. , Mrs. Smith, the appellee, having sold to McHatton a plantation in the parish of East Baton Rouge, received from him notes for $70,000 of the purchase-money, secured by a mortgage on the property sold. One of these notes for the sum of $15,000 was placed by Mrs. Smith before due in the Bank of Kentucky for collection, and that bank forwarded it for the same purpose to the Citizens’ Bank of New Orleans. The note was indorsed in blank by Mrs. Smith and by the Bank of Kentucky. Not being paid at maturity, it was duly protested,…
1Opinion of the CourtJustice Miller
We cannot see how the Circuit Court could have rendered any other decree than that which it did, namely,- to dismiss the appellant’s claim.
The rule of law that he who takes a note overdue and dishonored, takes it encumbered with all the equities between the prior parties to it, is the law of Louisiana as well as of those. States which have adopted the common law. This is well established by the numerous decisions cited in the brief of counsel for appellee filed in the Circuit Court.
Under this rule the purchaser from the Bank of Kentucky could get- no better title than the bank had when it…
2Cited by20 opinions
- Baker v. DavieMassachusetts Supreme Judicial Court · 1912
- Towner v. McClellandIllinois Supreme Court · 1884
- Ruth Whitehead v. American Security and Trust Company, American Security and Trust Company v. Ned Whitehead, and Whitehead and Company, Inc.Court of Appeals for the D.C. Circuit · 1961
- Gardner v. Beacon Trust Co.Massachusetts Supreme Judicial Court · 1906
- Cardozo v. FawcettSupreme Court of Minnesota · 1924
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