SFC Acceptance Corp. v. Spain

SUMMERS, Justice.

Plaintiff SFC Acceptance Corporation instituted this suit against John H. Spain and his wife Elizabeth Spain to recover the balance due on a note identified with a sale and chattel mortgage. One of the defenses alleged by the Spains was that plaintiff was not a holder in due course, and hence the note was subject to all defenses they could assert against the original payee. The trial court rendered judgment in favor of plaintiff without assigning reasons, and the defendants Spain and his wife appealed. The judgment was affirmed by the Fourth Circuit Court of Appeal, which…