Smith v. Paton
The Superior Court of New York City
This action was brought against the defendant, Patón, as maker, and Carpenter & Jaques as indorsers of a promissory note, for $1,000, payable four months after date.
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This action was brought against the defendant, Patón, as maker, and Carpenter & Jaques as indorsers of a promissory note, for $1,000, payable four months after date. The maker, Patón, put in an answer alleging that the note was an accommodation note, made by him without consideration, and for the accommodation of Carpenter & Jaques, the payees; and that it was discounted by the plaintiff, for the payees, corruptly and usuriously, the plaintiff reserving a rate of interest greater than seven per cent, to wit, the rate of $24 upon each $100 for one year. The action was referred, by consent, to…
1Opinion of the Court
By the Court—Hoffman, J.
The plaintiff undoubtedly took the note on the representations of Jaques, that it was business paper. This is positively sworn to by the plaintiff, and not contradicted or modified by Jaques.
It is true, that this would not deprive Raton of the defense of usury if the note was an accommodation note, and he had not authorized the representations. (Dowe v. Schutt, 2 Denio, 621.) But it would induce us to scrutinize Jaques’ evidence with strictness, had he sworn that it was an accommodation note.
It is necessary that the evidence to this point should be perfectly clear and…
2Cases cited2 opinions
- Dowe v. SchuttNew York Supreme Court · 1846
- Cobb v. TitusNew York Supreme Court · 1852