Smith v. Livingston
Massachusetts Supreme Judicial Court
Contract against the makers of a promissory note payable to Clark, Smith & Company, or bearer. Trial in the Superior Court, before Pitman, J., who, after a verdict for the plaintiff, allowed the following bill of exceptions: “ Among other defences the defendants claimed that the note was obtained from them by the fraudulent representations of the original payees as to furnishing certain patented machines to them for sale, and that the plaintiff took the note with notice of…
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Contract against the makers of a promissory note payable to Clark, Smith & Company, or bearer. Trial in the Superior Court, before Pitman, J., who, after a verdict for the plaintiff, allowed the following bill of exceptions: “ Among other defences the defendants claimed that the note was obtained from them by the fraudulent representations of the original payees as to furnishing certain patented machines to them for sale, and that the plaintiff took the note with notice of its infirmity and not in good faith. The plaintiff, who was a New Hampshire farmer, testified that he took the note from…
1Opinion of the Court
Mobtoít, J.
The indorsee of a promissory note who takes it for value, in good faith, in the usual course of business, before its maturity, is entitled to recover upon it, though the maker has a
*344good defence against the payee on the ground that it was obtained by fraud. But upon proof that a note is founded in illegality, or was obtained or put in circulation fraudulently, the burden of proof is upon the indorsee to show that he took it for value and in good faith before its maturity. Sistermans v. Field, 9 Gray, 331. Tucker v. Morrill, 1 Allen, 528. Smith v. Edgeworth, 3 Allen, 233. Clark v.…
2Cases cited2 opinions
- Goodman v. SimondsSupreme Court of the United States · 1858
- Clark v. ThayerMassachusetts Supreme Judicial Court · 1870
3Cited by40 opinions
- Vosburgh v. . DiefendorfNew York Court of Appeals · 1890
- Fillebrown v. HaywardMassachusetts Supreme Judicial Court · 1906
- National Security Bank v. CushmanMassachusetts Supreme Judicial Court · 1877
- Taylor v. American National BankSupreme Court of Florida · 1912
- Prouty v. MusquizTexas Supreme Court · 1900
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