Jordan v. Grover

Citations

• 99 Cal. 194
• 33 P. 889
• 1893 Cal. LEXIS 635

Syllabus

<p>Promissory Note—Fraud in Procurement—Bona Fide Purchaser—Burden of Proof.—Where fraud in the procurement of a promissory note is shown hy the maker, the burden of proof is then cast upon the indorsee to show that he is an innocent holder, and to sustain such burden he must show that he purchased the note before maturity in good faith for value, in the usual course of business, and under circumstances which create no presumption that he knew the facts which impeach its validity.</p> <p>Id.—Presumption aoainst Fraudulent Payee and Holder.—A presumption exists that a fraudulent payee would be likely to shield himself hy placing the note in the hands of another person to sue upon it, and such presumption operates against the holder.</p> <p>Jd.—Purchase for Half Value with Knowledse of Maker’s Solvency— Purchaser Put toon Inquiry as to Consideration.—The purchase of a promissory note before its maturity for one half its face value, with knowledge upon inquiry previously made of the maker’s solvency, but without inquiry as to the consideration thereof, are circumstances to be considered by the jury in determining whether the purchase was made in good faith, and are of themselves sufficient to arouse the suspicions of an ordinarily prudent man, and to put him upon inquiry as to the consideration.</p>