McChesney v. Guernsey

Citations

• 61 Pa. Super. 490
• 1915 Pa. Super. LEXIS 357

Syllabus

<p>Promissory note — Bills of exchange — Presentment for payment— Fraud — Burden of proof — Evidence.</p> <p>In an action by an endorsee against the acceptor of a draft, it is not necessary to show presentment for payment in order to charge the defendant inasmuch as he is primarily liable.</p> <p>In such a case the defendant is entitled to show that the payee negotiated it under such circumstances as amounted to a fraud upon the acceptor, and the burden of proof is then thrown upon the endorsee to show that he took the note in due course for a valuable consideration and without knowledge of the fraud.</p> <p>Where a person accepts a draft under a promise on the part of the payee that the draft will not be negotiated, and would only be used for a designated purpose, a subsequent violation of the agreement is a fraud upon the rights of the acceptor and will relieve him from liability on the draft as against the payee, or any one who takes it with knowledge of the fraud.</p>