Factory & Mill Supply Co. v. Waller Construction Corp.

As between the plaintiff and Associated Engi-

neers, Inc. (Associated), acceptance by the plaintiff of the defendant’s check in reduction of Associate’s debt to the plaintiff constituted value (Negotiable Instruments Law, § 51). The plaintiff was not a party to any of the transactions between Associated and the defendant nor was it on notice of any infirmity or defense to the check in which, at the instance of Associated, it and Associated are made the payees. Being thus insulated from the defendant, the plaintiff is a holder in due course notwithstanding that it is a payee (Britton, Bills and…