Covell v. President, Directors & Co. of the Tradesman's Bank
New York Court of Chancery
The complainant held a single bill, or sealed note, against T. and J. Hunt, for $2,425, payable to himself, in twelve months from date, with interest, and dated the 27th of September, 1826. On the 19th of October, in the same year, he borrowed of the defendant Mullins, a broker, the sum of $1,000, and pledged the sealed note to secure the repayment, indorsing his name in blank on the note.
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The complainant held a single bill, or sealed note, against T. and J. Hunt, for $2,425, payable to himself, in twelve months from date, with interest, and dated the 27th of September, 1826. On the 19th of October, in the same year, he borrowed of the defendant Mullins, a broker, the sum of $1,000, and pledged the sealed note to secure the repayment, indorsing his name in blank on the note. Mullins gave him a receipt for the note, promising to return it when he should receive the $1,000. On the 10th of November, 1826, Mullins being indebted to the Tradesman’s Bank, about $2,600, went to the…
1Opinion of the Court
The Chancellor :—In this case a gross fraud has been practiced by the defendant Mullins, and the question is, upon which of' the two innocent, parties to this suit must the loss fall ? Although it is not distinctly stated in the pleadings and proofs, it seems to be understood by the parties that Mullins is insolvent. As to the $1,000 which was due from Mullins at the time he transferred the sealed note, there can be no hardship in the case, as respects the bank. They are, as to that sum, no worse off than they were before the note was received in security. The complainant is clearly entitled…
2Cases cited1 opinion
- Willis v. TwamblyMassachusetts Supreme Judicial Court · 1816
3Cited by10 opinions
- McNeil v. . the Tenth National BankNew York Court of Appeals · 1871
- Bush v. . LathropNew York Court of Appeals · 1860
- Moore v. . Metropolitan National BankNew York Court of Appeals · 1873
- Comstock v. . HierNew York Court of Appeals · 1878
- Downer v. South Royalton BankSupreme Court of Vermont · 1866
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