Shultz Construction Co. v. Crawford County Bank

Hart, C. J.,

(after stating the facts). The first contention of appellants, Shultz Construction Company, is that the court erred in not directing a verdict in their favor. In this contention, we think they are correct. It is settled in this State, as well as elsewhere, that one who takes a negotiable note, payable to order, by delivery merely and without written assignment, is not an innocent purchaser and takes subject to all equities between the original parties. Webster v. Carter, 99 Ark. 458, 138 S. W. 1006 ; and Harrison v. Morgan-Curry Co., 115 Ark. 54, 170 S. W. 578.

When the instrument…