Nat'l Inv. & Sec. Co. v. Corey
| Decision Date | 24 January 1916 |
| Citation | 222 Mass. 453,111 N.E. 357 |
| Parties | NATIONAL INVESTMENT & SECURITY CO. v. COREY et al. |
| Court | United States State Supreme Judicial Court of Massachusetts Supreme Court |
OPINION TEXT STARTS HERE
Appeal from Municipal Court of Boston, Appellant Division.
Action of contract for money had and received by the National Investment & Security Company against William K. Corey and others. The municipal court of Boston found for defendants, and reported the case to the appellate division, which reversed the finding, and ordered judgment for plaintiff, and defendants appeal. Reversed, and to be entered for defendants.
Walter Shuebruk, of Boston, for appellants.
Frederick W. Doring and Forrest Killam, both of Boston, for appellee.
The agreed statement of facts shows that two checks, one dated April 26, 1913, for $75, and one April 28, 1913, for $50, both payable to the defendants and signed by the National Investment & Security Company by Charles E. Walker, treasurer, as maker, were delivered, each on the day of its date, to the defendants by H. C. Wilson, who was indebted to them, with instructions to credit the checks to his account. This was done, and they were collected by the defendants in the usual course of business. The plaintiff now seeks to recover from the defendants the amount of the checks and interest thereon, on the ground that its treasurer had no authority to sign and deliver them.
The plaintiff was not indebted to the defendants and had no business relations with them. The checks were received by the defendants from Wilson in part payment of his pre-existing debt, and the defendants were therefore holders for value. R. L. c. 73, § 42; Boston Steel & Iron Co. v. Steuer, 183 Mass. 140, 66 N. E. 646,97 Am. St. Rep. 426.
Although the defendants are the payees of the checks, they did not receive them from the plaintiff or Walker, its treasurer. The checks came to the defendants from Wilson, to whom, presumably, they were delivered as completed instruments, and they came to the defendants without notice of any infirmity. The payee of a check under such circumstances is a holder in due course. Liberty Trust Co. v. Tilton, 217 Mass. 462, 105 N. E. 605, L. R. A. 1915B, 144; Boston Steel & Iron Co. v. Steuer, supra. See also Fillebrown v. Hayward, 190 Mass. 472, 77 N. E. 45.
The defendants are not ‘immediate parties,’ under R. L. c. 73, § 33, making such parties to a negotiable instrument chargeable with notice of the conditions or limitations attached to it. As pointed out by Rugg, C. J. in Liberty Trust Co. v. Tilton, supra, at page 464, these words in the section refer to those who are ‘immediate’ in the sense of knowing or being held to know of the conditions or limitations placed upon the delivery of the instrument. ‘A payee who is a holder in due course is not an immediate party in the sense of that section.’
The plaintiff relies on Tower v. Stanley, 220 Mass. 429, 107 N. E. 1010, and Newburyport v. Fidelity Ins. Co., 197...
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