Mechanics' Bank of Williamsburgh v. Foster
New York Supreme Court
THIS action was brought to recover the amount of a promissory note purchased by the plaintiffs at a discount of eleven per cent per annum. The note was signed with the him name of S. H. & C. W. Foster, was drawn by S. H. Foster, one of the firm, for his own use, was not entered on the books of the company, and had nothing to do with the business of the firm.
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THIS action was brought to recover the amount of a promissory note purchased by the plaintiffs at a discount of eleven per cent per annum. The note was signed with the him name of S. H. & C. W. Foster, was drawn by S. H. Foster, one of the firm, for his own use, was not entered on the books of the company, and had nothing to do with the business of the firm. S. H. Foster, after he made the note, sold it to one Furman, at eleven per cent discount, who sold it to the plaintiffs at the same rate. The answer denied that the plaintiffs were bona fide holders of the note, and averred that the note…
1Opinion of the Court
By the Court, Ingraham, P. J.
It is very clear that if the defendants had set up the defense of usury in the answer they would have succeeded in their defense. The note was made for the accommodation of one of the defendants, and was sold by him at an usurious .rate of interest. It was, therefore, clearly void for usury, not only in the hands of Furman, but' of any other subsequent holder. But as the defendant has not pleaded this matter as a defense, it is equally clear that he can not now defeat the plaintiffs’ recovery, for this cause.
The defense now relied on is that the note, so far as it…
2Cases cited2 opinions
- Holmes v. WilliamsNew York Court of Chancery · 1843
- Steinhart v. BokerNew York Supreme Court · 1861
3Cited by11 opinions
- May v. BurrasCity of New York Municipal Court · 1884
- Stevens v. McLachlanMichigan Supreme Court · 1899
- Brown v. JonesNew York Supreme Court · 1915
- Cary v. Western Union Telephone Co.New York Supreme Court · 1888
- Griggs v. HoweNew York Court of Appeals · 1866
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