United States National Bank v. Ewing
New York Court of Appeals
Appeal from judgment of the General Term of the Supreme Court in the first judicial department, entered upon an order made May 15, 1891, which affirmed a judgment in favor of plaintiff entered upon a verdict directed by the court, and affirmed an order denying a motion for a new trial. This was an action upon a promissory note. The facts, so far as material, are stated in the opinion. The note was diverted from the use to which it was restricted by defendant.
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Appeal from judgment of the General Term of the Supreme Court in the first judicial department, entered upon an order made May 15, 1891, which affirmed a judgment in favor of plaintiff entered upon a verdict directed by the court, and affirmed an order denying a motion for a new trial. This was an action upon a promissory note. The facts, so far as material, are stated in the opinion. The note was diverted from the use to which it was restricted by defendant. He had a right to impose such a restriction and had an interest" in having it observed. (Freund v. I. & T. N. Bank, 76 N. Y. 272; M. L.…
1Opinion of the CourtFinch, J.
The note sued upon was made by Madden and indorsed by Ewing for the accommodation of the maker, and by him was transferred to the plaintiff as added security upon a precedent debt. The holder parted with nothing upon receiving it, surrendered no right and no security, and made, no new agreement in reliance upon it. In its hands it was, therefore, ojien to the defense that, made for one purpose, it had been used for another, and that its diversion had served to discharge the indorser.
The trial court held that no such legal diversion had been established and the contention here is that the…
2Cases cited1 opinion
- Benjamin v. . RogersNew York Court of Appeals · 1891
3Cited by15 opinions
- Sutherland v. MeadAppellate Division of the Supreme Court of the State of New York · 1903
- Farley National Bank v. HendersonSupreme Court of Alabama · 1897
- Grisim v. Live Stock State BankSupreme Court of Minnesota · 1926
- Warner v. Fallon Coal Mines Co.Michigan Supreme Court · 1929
- Brewster v. ShraderNew York Supreme Court · 1899
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