131 Wis. 64 | Wis. | 1907
Tbe fact stands uncontradicted by tbe record, as above stated, that one of tbe signatures to- tbe note sued on was procured under circumstances showing that tbe person so signing did not know tbe character and nature of tbe instrument and could not have obtained such knowledge by tbe use of ordinary care. Appellant concedes that bis title to tbe note is absolutely void p,s against tbe person whose signature was so procured, but insists that tbis fact in no way affe'cts tbe validity of tbe note as against tbe other persons who 'signed it, if their signatures were not so procured. Whether tbis claim can be sustained depends upon tbe significance of see. 1676 — 25, Stats. (Supp. 1906), found in cb. 356, Laws of 1899, known as tbe Negotiable Instrument Act. Tbis section provides:
“The title of a person who negotiates an instrument is 'defective within tbe meaning of tbis act when be obtains tbe instrument, or any. signature thereto, by fraud, . . . or when be negotiates it . . . under such circumstances as amount to a fraud; and tbe title of such person is absolutely void when such instrument or signature was so procured from a person who did not know tbe nature of tbe instrument and could not have obtained such knowledge by tbe use of ordinary care.”
The first clause of tbis section was considered and interpreted in tbe recent case of Hodge v. Smith, 130 Wis. 326, 110 N. W. 192. It was there held that tbe title of a person who negotiates commercial paper is defective when be has obtained any signature thereto by fraud, and that if tbe party so defrauded be relieved from liability thereon, then
This being the ascertained meaning qf the first part of the section, we proceed to consider and determine the meaning of the following and concluding clause. In terms it expresses the rule of law recognized in the decisions of this court when it was enacted, which was to the effect that, when a signature to a negotiable instrument is obtained by falsely and fraudulently misrepresenting its character, and the person signing it could not have obtained knowledge of the-falsity and fraud by the use of ordinary care, this makes the title to the instrument absolutely void as to such signer. Butler v. Carns, 37 Wis. 61; Walker v. Ebert, 29 Wis. 194; Keller v. Ruppold, 115 Wis. 636, 92 N. W. 364; Franklin v. Killilea, 126 Wis. 88, 104 N. W. 993. It is conceded by .appellant that the title to a note like the one in question is absolutely void as against any person whose signature thereto was procured by false and fraudulent representations as to its character and under such circumstances that he could not have obtained knowledge of its character by the use of ordinary care; but it is averred that the fact of one signature having been so procured does not invalidate the note as to other signers whose signatures were not so procured. The words of the statute, “the title of such person is absolutely void when such instrument or signature was so procured from a person” through misrepresenting its character and from one who was
The fact is established that the signature of Charles Zibuski to this note was procured by false and fraudulent representations as to its character, and that he could not have obtained knowledge of its true character by the use of ordinary care. This released him from liability, and made plaintiff’s title to the note absolutely void as to all of the defendants. He cannot recover.
By the court. — Judgment affirmed.