Bank of Bernice v. Tanner

Plaintiff, Bank of Bernice, brought this action against P. J. Tanner and L. D. Parley to recover judgment against them on a note which was drawn by Tanner payable to the order of Parley and endorsed by him and transferred to plaintiff.

Tanner did not make any defense, but Parley alleged, in substance, that his endorsement had been obtained by fraud, in that the note had been transferred to plaintiff with the understanding and agreement that plaintiff would rely solely upon the responsibility of the drawer, and that the endorsement was under the agreement of the parties for the restricted…