Chandler v. City of Bay St. Louis
Mississippi Supreme Court
Appeal from tlie Circuit Court of Hancock County. Hon. J. S. Hamm, Judge. Any maker of a negotiable obligation for the payment of money is responsible to innocent holders for value, if by his negligence a third party raises it to a greater amount so skilfully as to excite no suspicion in the mind of a prudent person, and if there is nothing on the face of the paper or in the character of the person selling to put a purchaser on his guard.
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Appeal from tlie Circuit Court of Hancock County. Hon. J. S. Hamm, Judge. Any maker of a negotiable obligation for the payment of money is responsible to innocent holders for value, if by his negligence a third party raises it to a greater amount so skilfully as to excite no suspicion in the mind of a prudent person, and if there is nothing on the face of the paper or in the character of the person selling to put a purchaser on his guard. The person who commits the fraud is primarily liable, and if he is insolvent the party whose negligence contributed to the loss is responsible to the…
1Opinion of the CourtChalmers, J.
The proper authorities of the city of Bay St. Louis issued several warrants or checks on its own treasury in payment of work done for the corporation, amounting in the aggregate to nine dollars and thirty-three cents. The amounts specified in the several warrants were fraudulently raised by the clerk of the town council after issuance, until in the aggregate, as raised, they amounted to nine hundred and thirty-three dollars and thirty cents, and as thus raised they were negotiated and came in due course to the plaintiff’s intestate, who, in *329good faith, purchased them, supposing them to have…
2Cases cited1 opinion
- Sherman v. City of GrenadaMississippi Supreme Court · 1875
3Cited by2 opinions
- State Highway Commission v. KnightMississippi Supreme Court · 1934
- Sevier Lake Drainage Dist. v. KinneyMississippi Supreme Court · 1929