CIT Corporation v. Panac

In this action on two negotiable promissory-notes by the plaintiff, a holder in due course, against defendants as makers, the latters ’ defense of fraud by an agent of the payee in the execution of the notes was sustained by the trial court sitting without a jury.

The court found that defendants are husband and wife; that they are illiterate, being unable to read or write the English language, and William Hart the agent of the payee knew of that fact; that Hart gained the trust and confidence of defendants and secured their signatures to the notes by false representations which induced the…