{
  "id": 5252120,
  "name": "Central School Supply House v. James Donovan et al.",
  "name_abbreviation": "Central School Supply House v. Donovan",
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    "date_added": "2019-08-29",
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    "judges": [],
    "parties": [
      "Central School Supply House v. James Donovan et al."
    ],
    "opinions": [
      {
        "text": "Mr. Justice Waterman\ndelivered the opinion oe the Court.\nThe question presented in this case is as to the right of the transferee of a negotiable promissory note, who, with notice of a defense, purchased the instrument from a bona fide holder, who acquired it before it became due.\nPromissory notes indorsed in blank pass by delivery.\nPossession of such notes is prima facie evidence of title thereto. Morris v. Preston, 93 Ill. 215; Palmer v. Nassau Bank, 78 Ill. 380.\nThe character of a promissory note as negotiable paper is established when it is acquired by a bona fide holder before maturity, and notice of original defects does not affect subsequent holders either before or after maturity. Daniels on Neg. Instruments, Secs. 728-803; Story on Prom. Notes, Sec. 191; Simon v. Merritt, 33 Ia. 537; Commissioners v. Clark, 94 U. S. 278: Rice v. Van Ackere, 22 Ill. App. 588; Vol. 2, (6th Ed.), Parsons on Contracts, 242-253; Wood-worth v. Huntoon, 40 Ill. 131; Wilder v. DeWolf, 24 Ill. 190; Gillham v. The State Bank of Illinois, 2 Scam. 245.\nThat appellees did not see fit to fill in the indorsement by Geo. H. Taylor & Co., so as to make it a special transfer, is immaterial.\nBy the indorsements it appears that appellees took title through the payees, Geo. H. Taylor & Co.; the introduction of the notes thus indorsed made a prima facie case for appellees. By evidence introduced by appellant it appeared that the Hide & Leather Bank purchased these notes before they became due, and that appellee bought the paper from the bank before the notes matured.\nAppellant does not contend that as against the bank it had any defense; its position therefore is, that the bank could not transfer its right to appellee, a contention for which there is, so far as we are aware, no authority.\nAll that is held in Kost v. Bender, 25 Mich. 515, is that where the maker of a promissory note has a valid defense as against the person to whom upon its face it is payable, if such payee, after assignment to a Iona fide holder, again acquire and bring suit upon the note, the law, to avoid circuity of action, will allow the maker to set up that he was induced by the fraudulent representation of the payee, plaintiff, to execute the note.\nThe judgment of the Superior Court is affirmed.",
        "type": "majority",
        "author": "Mr. Justice Waterman"
      }
    ],
    "attorneys": [
      "Albert N. Eastman, attorney for appellant.",
      "Tenney, McConnell & Coffeen and Wm. J. Ammen, attorneys for appellees."
    ],
    "corrections": "",
    "head_matter": "Central School Supply House v. James Donovan et al.\n1. Promissory Notes\u2014Indorsed in Blank\u2014Possession Evidence of Title.\u2014Promissory notes indorsed in blank pass by delivery, and possession of such notes is prima facie evidence of title thereto.\n2. Same .\u2014First Assignment to Bona Fide Holder Without Notice of Defects Fixes Character of.\u2014The character of a promissory note, as negotiable paper, is established when it is acquired by a bona fide holder before maturity, and notice of original defects does not affect subsequent holders either before or after maturity.\nAssumpsit, on promissory notes. Appeal from the Superior Court of Cook County; the Hon. Nathaniel C. Sears, Judge,- presiding.\nHeard in this court at the March term, 1897.\nAffirmed.\nOpinion filed May 24, 1897.\nAlbert N. Eastman, attorney for appellant.\nTenney, McConnell & Coffeen and Wm. J. Ammen, attorneys for appellees.\nBills and notes indorsed in blank pass by delivery. Possession of same is prima, facie proof of title thereto. Purchaser is not bound to inquire as to title. Morris v. Preston, 93 Ill. 215; Palmer v. Nassau Bank, 78 Ill. 380; see also cases cited in Vol. 2, Starr & Curtis Stat., pages 2793-4.\nA note payable to the maker\u2019s order and indorsed by him in blank is in legal effect a note payable to bearer, and is transferable by delivery. Jones v. Shapera (C. C. A), 57 Fed. Rep. 457; 6 C. C. A. 422."
  },
  "file_name": "0208-01",
  "first_page_order": 208,
  "last_page_order": 210
}