Union Trust Co. v. Matthews

Plaintiff as indorsee and as trustee sued defendant on his certain promissory notes. At the conclusion of proof, both parties requested directed verdict. Verdict was directed for defendant and judgment entered. Plaintiff has appealed.

The decisive question is that the indorsement to plaintiff was restrictive, that it, therefore, was not a holder in due course under'negotiable instruments law, but took subject to infirmity that the notes had been obtained from defendant by fraud.

Fred J. Horning, trading as Prudential Discount Company, desired to borrow money from time to time on his promissory…