New Georgia National Bank of Albany, Georgia v. J. & G. Lippmann

Cabdozo, Ch. J.

Plaintiff, a national bank, is the owner through indorsement of a promissory note signed “ J. & G. Lippmann, L. J. Lippmann, Pres.” It asks for judgment in the alternative (Civ. Prac. Act, § 213) against the corporation, the maker of the note, or against the president personally if, in signing the note in behalf of the corporation, he acted without authority. We are to determine whether a cause of action is stated against the individual defendant.

At common law, the remedy against an agent signing a note without authority was not upon the note itself, but for breach of an…