Brown Fruit Co. v. Gotham Factors Corp.

BOOTH, Circuit Judge.

An action at law was brought by the Gotham ' Factors Corporation against the Brown Fruit Company on trade acceptances . which were drawn on the Brown Fruit Company by the Duralith Corporation and endorsed by the latter corporation to the Gotham Factors Corporation.

The transaction out of which the trade acceptances originated consisted of a sale by the Duralith Corporation to the Brown Fruit Company of certain wall texture called “Duralith” and certain coloring material called “Duratint,” manufactured by the Duralith Corporation.

One of the acceptances had been paid by the…