Credit Adjustment Co. v. McCormick

This is an action for a personal judgment on a negotiable promissory note brought by the holder as endorsee against the makers. The trial court, concluding as a matter of law that there was a failure of consideration and that the plaintiff was not a holder in due course, directed a verdict for defendants and awarded judgment thereon. Plaintiff appealed.

The only defense involved is an alleged failure of consideration. Such defense was available against plaintiff only if it were not a. holder in due course.

The note, dated January 22, 1942, and being for the principal sum of $198.55, was…