Hand v. Manufacturers & Traders Trust Co.

Dissenting Opinion by HARRELL, Judge, which BELL, C.J., and RAKER, J., join.

I dissent. Cordelia Smith lacked legal capacity to bind the guardianship of Clifton Dominick Smith with regard to the deed of trust and deed of trust note at issue in this case. Accordingly, the guardianship possessed a valid defense to M & T Bank’s collection efforts concerning the note. It is of no material consequence to my analysis that M & T Bank concededly is a holder in due course of the instrument.

I

A holder in due course takes an instrument subject to several “real” defenses, including lack of legal capacity…