Carnes v. Clark

Plaintiff appeals from a judgment in favor of the defendant.

Plaintiff brought suit on a promissory note purchased by it from the payee. Defendant, the maker of the note, claimed lack of consideration and thus has made no payment on the note.

The plaintiff contended it was a holder in due course and as such took free of defendant’s lack of consideration defense. It is undisputed that plaintiff purchased the note in good faith and without notice of any defects or defenses. The only issue is whether the note was transferred to the plaintiff by negotiation or assignment. The note was transferred…