Bank of East Chattanooga v. Clayton
Supreme Court of Alabama
Appeal from Circuit Court, De Kalb County; W. W. Ilarralson, Judge. Action by the Bank of East Chattanooga against O. W. Clayton. Judgment for' defendant, -.and plaintiff appeals. Action was on negotiable promissory note executed by O. W. Clayton, payable to his own order, and contemporaneously indorsed by him to the Southern Pharmaceutical Company, by whom it was in turn indorsed to the plaintiff bank.
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Appeal from Circuit Court, De Kalb County; W. W. Ilarralson, Judge. Action by the Bank of East Chattanooga against O. W. Clayton. Judgment for' defendant, -.and plaintiff appeals. Action was on negotiable promissory note executed by O. W. Clayton, payable to his own order, and contemporaneously indorsed by him to the Southern Pharmaceutical Company, by whom it was in turn indorsed to the plaintiff bank. The defenses were that the consideration for the giving of the note failed, and that its execution and indorsement were procured by the fraudulent representation of the Pharmaceutical Company.…
1Opinion of the CourtSomerville, J.
[1] The consideration paid by plaintiff for the note in suit was a negotiable certificate of deposit, which was in fact negotiated by the payee, and after-wards paid in due course by plaintiff bank. As held on the former appeal in this case (Clayton v. Bank of E. Chattanooga, 204 Ala. 64, 85 South. 271), this established the status of the bank as a purchaser of tin-note for value, and, if it purchased without notice of the defenses set up in tin-pleas, it was entitled to recover. This was the only contested issue in the case.
[2] The evidence showed without dispute that the bank purchased the…
2Cases cited2 opinions
- Ex parte Goldberg & LewisSupreme Court of Alabama · 1914
- Clayton v. Bank of East ChattanoogaSupreme Court of Alabama · 1920
3Cited by4 opinions
- Lowrance Motor Co. v. First National Bank of AuburnCourt of Appeals for the Fifth Circuit · 1956
- Lowrance Motor Company, Inc., Also Known as Lowrance Buick Company, Inc., and Winfred Lowrance v. The First National Bank of Auburn, Auburn, Alabama, First National Bank of Auburn, Auburn, Alabama, Cross-Appellant v. Lowrance Motor Company, Inc., Also Known as Lowrance Buick Company, Inc., and Winfred Lowrance, Cross-AppelleesCourt of Appeals for the First Circuit · 1957
- Tennessee Valley Bank v. WilliamsSupreme Court of Alabama · 1943
- Wible v. AbrahamSupreme Court of Alabama · 1929