Commercial National Bank In Shreveport v. Calk

CULPEPPER, Judge.

This is a suit by ordinary process for the balance due on a promissory note and recognition of a chattel mortgage securing same, through the seizure and sale of a “trencher” machine. The defense is a failure of consideration due to the defective condition of the machine for whose purchase the note was given. The issue is whether the plaintiff bank is a holder in due course and as such immune from this defense. From an adverse judgment on the merits, the plaintiff appealed.

There is little, if any, dispute as to the facts. On February 22, 1966, the defendant, Mr. J. C. Calk of…