Caldwell v. McGarvey

Appellant Caldwell, as receiver for the First National Bank of Ranger, Tex., brought suit on certain notes executed by appellees. The notes were in legal effect payable to bearer, but were originally executed and delivered by appellees to one Nix and by said Nix pledged to said bank as collateral security. Appellees pleaded fraud in the transaction, wherein the notes were executed. Appellant replied that the said bank was a holder in due course.

The case was submitted to a jury upon special issues and a special verdict returned. The verdict established the fraud pleaded by appellees in the…