Goetz v. Bank of Kansas City

Citations

• 119 U.S. 551
• 7 S. Ct. 318
• 30 L. Ed. 515
• 1887 U.S. LEXIS 1918

Syllabus

<p>Tlie acceptor of a bill of exchange discounted by a bank with a bill of lading attached which the acceptor and the bank regal'd as genuine at the time of the acceptance, but which turns out to bo a forgery, is bound to pay the bill to the bank at maturity.</p> <p>The bad faith in the taker of negotiable paper which will defeat a recovery by him must be something more than a failure to inquire into the consideration upon which it was made or accepted, because, of rumors or general reputation as to the bad character of the maker or drawer.</p> <p>In an action against the acceptor of a bill of exchange, with alleged fictitious bills of lading attached, articles from newspapers touching the drawer as to other drafts with like bills attached were properly excluded as having no connection with the transaction in controversy, it not appearing that the holder ever saw them.</p> <p>Evidence of declarations of an agent as to past transaction of his principal is inadmissible, as mere hearsay.</p> <p>In an action by a bank against the acceptor upon a draft discounted by the bank with a fraudulent bill of lading attached, the president of the bank, as a witness for it, having testified that he was ignorant of the forgeries, and also of the circumstances attending other drafts by the drawer with forged bills of lading attached which had been discounted by the bank, and that he could only explain why paius were not taken in the matter by explaining the usage of the bank, it is competent for the court to receive such explanation of the usage.</p>