Federal Factors, Inc. v. Wellbanke

George Rose Smith, Justice.

The appellant, claiming to be a holder in due course, brought this action to enforce three instruments, entitled Trade Acceptances, executed by the appellee Wellbanke and by Richard J. Martin. Wellbanke contended that the instruments were not negotiable and that he was therefore entitled to interpose in his defense certain breaches of contract on the part of the drawer, Chemical Products, Inc. The trial court, sitting without a jury, sustained Wellbanke’s contentions. Negotiability is now the main issue.

In October 1962 Wellbanke and Martin signed a contract by which…