Franklin Discount Co. v. Murphy

All parties agree that the negotiability of the note which was issued in Massachusetts is governed by the law of that commonwealth. Applying that principle to this situation, it appears that under Massachusetts law the note was negotiable. City National Bank v. Adams, 266 Mass. 239. Since this is so, it follows that defenses which might be available to the defendant, Gerard M. Murphy, against the original payee are not good against the plaintiff, Franklin Discount Company, which is a holder in due course. State Trading Corporation v. Toepfert, 304 Mass. 473.

This would seem to dispose of the…