Commerce Securities Corp. v. Congleton

Commerce Securities Corporation, holder in due course, sued J. A. Congleton, as indorser, on a promissory note executed by J. O’Leary, payable to the order of Quality Motor Company, a partnership, and transferred by the latter to plaintiff. The defendant sought to avoid liability on the ground that, after his indorsement, there was stamped on the back of the note, over his signature, an obligation of guaranty, thus materially altering the instrument, to his prejudice.

The case was tried to a jury, and, in answer to special issues, found that defendant’s indorsement was based on a consideration…