New York Bankers, Inc. v. Duncan

Cardozo, Ch. J.

The complaint is upon three negotiable promissory notes given by the defendant to the Arflex Lamp and Fixture Manufacturing Corporation, and indorsed by the payee to the plaintiff.

The answer is, first, that the notes in suit and others renewed thereby were procured through fraudulent representations by the agent of the payee and were thereafter received by the plaintiff with knowledge of the fraud, and, second, a counterclaim for payments made to the plaintiff on account of the notes before discovery by the defendant of the wrong that he had suffered.

The notes renewed by those…