35 N.Y.S. 881 | N.Y. Sup. Ct. | 1895
The note upon which recovery was had was made in the state of Texas, and is therefore governed by the law of that state. It does not appear, however, that the statutes of Texas affect in any manner the legal questions which grow out of this controversy, and, in the absence of proof to the contrary, the common law must be presumed to prevail in Texas, as it does in New York; and in this state the law applicable to the facts of the case is that holders of negotiable paper are only entitled to the benefit of the rule of the commercial law, which forbids its validity being questioned when they have purchased such paper in good faith, and in the usual course of business, before maturity, for full value, and without notice of any facts affecting its validity. The holder may make out his title by presumption, but this may be impeached by evidence showing the paper had an illegal inception, and then he can no longer rest upon presumption, but must show the circumstances under which it came into his possession, and that he has acted in good faith. While gross carelessness will not, as matter of law, defeat title in the purchaser for value, it constitutes evidence of bad faith. The payment of value for negotiable paper is a circumstance to be taken into account, with other facts, in determining the good faith of the purchaser, but it is not conclusive when it appears that the paper was obtained under such circumstances as would have prevented the original holder from maintaining an action thereon, except in the absence of all evidence tending to show notice to, or bad faith on the part of, the purchaser. With these rules as our guide, we shall briefly consider the evidence.
At the outset, it may be observed that it is undisputed that the note was obtained by the payee without consideration. It was made under the following circumstances: In November, 1890, John Scott, the maker, while in the state of Texas, negotiated for the purchase of some land of one E. H. Ropes, with whom he had been acquainted for some period of time. Ropes supposed that he was, or, at least, said that he was, the owner of a tract of land in the county of Nueces, and he agreed to sell the same, and to take defendant’s note therefor,
In the light of these facts, we think it was a question for the jury whether she was a good-faith purchaser for value, and not a question of law for the court.
The exceptions should be sustained, and a new trial ordered, with costs to the defendant to abide the event. All concur.