Keeler v. Hollweg
New York Supreme Court
Action upon a promissory .note, against the two makers, and the two payees as indorsers. The two indorsers answer, setting np as a defense that the plaintiff released a certain security given by the makers for the payment 'of the note, and thereby released the defendants as indorsers.' The facts proved are as follows: The plaintiff’s husband sold his business and chattels therein to the said makers of the note.
Read the full summary
Action upon a promissory .note, against the two makers, and the two payees as indorsers. The two indorsers answer, setting np as a defense that the plaintiff released a certain security given by the makers for the payment 'of the note, and thereby released the defendants as indorsers.' The facts proved are as follows: The plaintiff’s husband sold his business and chattels therein to the said makers of the note. He ¡agreed to ¡take their note for part of the purchase price, payable in ten months,, but exacted that they get indorsers of it, and also give hack ¡a chattel mortgage on the said…
1Opinion of the Court
Gaynor J.:
These answering defendants stood in the relation of sureties to the plaintiff’s husband for the payment of the note, and he held the chattel mortgage as security for its payment, not only in his own interest, but also as trustee for them. TTis duty under such trust was toi preserve the said security, and, I suppose, to do whatever was necessary to keep.it in life, and a prior lien, (to file it, for instance), and to turn it over to the defendants 'intact upon their paying the note. . It must also be that it was permissible to him under the trust to do anything to strengthen the…
2Cases cited5 opinions
- Hayes v. WardNew York Court of Chancery · 1819
- Murray v. . MarshallNew York Court of Appeals · 1884
- Vose v. . the Florida Railroad CompanyNew York Court of Appeals · 1872
- Merrill v. ReinersNew York Supreme Court · 1895
- Underhill v. PalmerNew York Court of Common Pleas · 1882
3Cited by1 opinion
- Westchester Mortgage Co. v. Thomas B. McIntire, Inc.Appellate Division of the Supreme Court of the State of New York · 1916