Claflin v. Farmers & Citizens' Bank
New York Supreme Court
APPEAL from a judgment entered on the report of a referee. The complaint averred that the defendants are a corporation created by and under the statutes of the state of Hew York, and transacting business at Williamsburgh, in the county of Kings.
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APPEAL from a judgment entered on the report of a referee. The complaint averred that the defendants are a corporation created by and under the statutes of the state of Hew York, and transacting business at Williamsburgh, in the county of Kings. That at the dates of the several instruments hereinafter mentioned, one Charles W. Houghton was the president of the said bank, and as such had power and authority to accept drafts and certify checks drawn upon the said bank, and to bind the said bank thereby. That on or about the 31st day of December, 1853, one Thomas Green drew his draft or check in…
1Opinion of the Court
By the Court,
Leonard, J.
An agent cannot, in general, act so as to bind his principal in matters touching his agency, where he has an adverse interest in himself. (Stone v. Hayes, 3 Denio, 575. Bentley v. The Columbia Ins. Co., 17 N. Y. Rep. 423.) There is an exception in the application of this principle in favor of the holders of negotiable paper acquired in good faith before due, for value, without notice of the misconduct of the agent, or the knowledge of *545such facts as would amount to a want of good faith in the taker of such paper.
In the case before us, the interest of Houghton is assumed…
2Cases cited1 opinion
- Stone v. HayesCourt for the Trial of Impeachments and Correction of Errors · 1846
3Cited by2 opinions
- Merchants' Bank v. RudolfNebraska Supreme Court · 1877
- Houghton v. First National BankWisconsin Supreme Court · 1870