Lancaster County National Bank v. Garber
Supreme Court of Pennsylvania
Appeal, No. 247, Jan. T., 1896, by plaintiff, from judgment of C. P. Lancaster Co., May T., 1894, No. 58, on verdict for defendant. Assumpsit against first indorser upon a promissory note.
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Appeal, No. 247, Jan. T., 1896, by plaintiff, from judgment of C. P. Lancaster Co., May T., 1894, No. 58, on verdict for defendant. Assumpsit against first indorser upon a promissory note. Before Brubaker, J. The court charged in part as follows: This, as you bave seen, is an action brought by the Lancaster County National Bank, plaintiff, against Andrew Garber, the defendant, for the recovery of the amount of a certain promissory. note for $1,350, which was dated January 15, 1894, and was made payable sixty days after date to the order of Andrew Garber at the Mountville National Bank, in…
1Opinion of the Court
Opinion by
Mr. Justice Fell,
The maker or indorser of a negotiable note cannot defend against a bona fide holder without notice on the ground that there was fraud in the procurement or use of the note, and the mere fact that the note was acquired under suspicious circumstances will not invalidate it in the hands of the holder unless the circumstances are such that bad faith on his part can be reasonably inferred. The test of liability is not whether the note was taken under circumstances which would give rise to suspicion, but whether it was taken in good faith. It was held in Phelan v. Moss,…
2Cases cited5 opinions
- Phelan v. MossSupreme Court of Pennsylvania · 1871
- Second National Bank v. MorganSupreme Court of Pennsylvania · 1895
- Moorehead v. GilmoreSupreme Court of Pennsylvania · 1875
- State Bank v. McCoySupreme Court of Pennsylvania · 1872
- McSparran v. NeeleySupreme Court of Pennsylvania · 1879
3Cited by10 opinions
- Davis v. Pennsylvania Co., Etc.Supreme Court of Pennsylvania · 1940
- Union Bank & Trust Co. v. Girard Trust Co.Supreme Court of Pennsylvania · 1932
- Green v. WilkieSupreme Court of Iowa · 1896
- Stroudsburg Security Trust Company CaseSuperior Court of Pennsylvania · 1941
- Peoples National Bank v. HazardSupreme Court of Pennsylvania · 1911
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