First National Bank v. Klimenhagen

Action by plaintiff to recover on a promissory note and to enforce by judicial sale its rights to collateral thereto. The answer alleges that the note was procured by fraud.

The facts are substantially these: On November 15, 1920, defendant was solicited, by one Earl Gernert, to buy stock in the Austin Clay Works, and on that day he gave his note to Gernert for $1,250 payable “to the order of myself” 6 months after date. He indorsed the note. This note together with á liberty bond for $100 was given for 12J shares of stock in the Austin Clay Works. The certificate of this stock was then…