Real Estate Investment Co. v. Smith & Russel
Real Estate Investment Co. v. Smith & Russel
Opinion of the Court
Opinion by
This action was upon a promissory note made by Smith and Russel to the order of Wm. B. Smith, and by him indorsed, and upon which the plaintiff paid its full face value. The defence was that Wm. B. Smith obtained and used the money for his own benefit.
The circumstances under which the money Avas borrowed and the firm note taken payable to the order of one of its members, who received the money, were fully explained by John J. Ridgway, the president of the company. Wm. B. Smith requested the loan for the purpose of paying Avages due by the firm of which he was a member. While the loan ivas doubtless made as a favor to him, it was for the business of the firm, and to the firm, and the firm note Avas taken. The note was not brought to Mr. Ridgway for discount, but Avritten by him after the needs of the firm had been made known, and in carrying out his intention to loan to it. There was nothing connected with the negotiation to suggest an improper use of the firm name, or to put the plaintiff upon inquiry.
The judgment is affirmed.
Reference
- Full Case Name
- Real Estate Investment Co. v. Smith & Russel. Russel's Appeal
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- 1 case
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- Syllabus
- Promissory notes — Partnership. In an action against a partnership upon a promissory note signed with the firm name, where the evidence is uncontradicted that the money was loaned to one of the partners for the express purpose of paying wages due by the firm, and there was nothing connected with the negotiation to suggest an improper use of the firm name or to put plaintiff upon inquiry, the other partner cannot resist payment on the ground that the money was not applied to the firm’s use, and that he had no knowledge of the existence of the note.