Lialios v. HOME INSURANCE COS.

Plaintiff, Gregory Lialios, brought suit against defendant, The Home Insurance Companies, the drawer of a draft, alleging that he was a holder in due course and seeking $1275, the face amount of the draft.

On December 21,1978, defendant settled a workman’s compensation claim with Costas Moulopoulos for $1275. On that date, defendant through its duly authorized agent, issued draft No. 19668648, drawn upon defendant, payable through Citibank, New York, New York, and made payable to Moulopoulos. The draft states on its face “upon acceptance pay to the order of Costas Moulopoulos.”

On December 28,…