Johnston v. Knipe

Citations

• 260 Pa. 504
• 105 A. 705
• 1918 Pa. LEXIS 556

Syllabus

<p>Negotiable instruments — Promissory notes — Payee — Holder in due course — Payee as holder — Common law — Statute-.—Presumption — Act of May 16,1901, P. L. 191±.</p> <p>1. The payee of a promissory note may become a holder in due course under the Negotiable Instruments Act of May 16,1901, P. L. 194, and may maintain an action thereon against the endorser.</p> <p>2. In an action on a promissory note brought by the payee, who had become the holder for value thereof before maturity, against an endorser, where defendant contended that he had endorsed the note for accommodation of the maker, with the name of the payee in blank, but with the express understanding that plaintiff’s name should not be inserted as payee, and that plaintiff’s name had been inserted in violation of the agreement, but where there was nothing to show that plaintiff had knowledge of such facts, the case was for the jury, and a verdict and judgment for plaintiff were (sustained.</p> <p>3. In such case it was not material that the payee had endorsed the note above defendant’s signature to facilitate its collection.</p>