2 Lans. 412 | N.Y. Sup. Ct. | 1869
By the Court
This action was brought upon a negotiable promissory note,, payable to George N. Palmer, or order, one year after date. It was indorsed without recourse by one Persons, without authority from Palmer, and delivered to the plaintiff, who paid for it a good consideration. After the maturity of the note, Palmer ratified the indorsement. It is conceded in the ease, and was assumed and asserted by the learned judge at the circuit,
The Code has in no respect altered this rule of the law merchant in respect to negotiable paper. (Richard v. Warner, 39 Barb., 42.) No one could maintain an action upon this note but Palmer, or some indorsee under him, before the ratification of the indorsement, except under a special, equitable title, tin grounds which would leave the original equities open between the parties. Ho one could acquire in or to said note the rights of a bona fide purchaser of commercial paper without the proper instrument and evidence of a commercial title by a genuine indorsement of the payee upon the paper made at or before the time of its transfer. This is the first step in the process of making title to negotiable paper that shall confer greater rights than were possessed by the original holder. The plaintiff clearly had no such title when this suit was commenced; and for this reason, I think the motion for a nonsuit should have been granted, and the exceptions taken to the exclusion of the evidence, showing á defence of the note as between the original parties were well taken.
A new trial should therefore be granted, with costs to abide the event.
Hew trial granted.