108 Mo. App. 511 | Mo. Ct. App. | 1904
— On the fourteenth of May, 1888, appellants negotiated a loan for $2,500, through defendant, Joseph T. Donovan, a real estate agent of the city of St. Louis, and for principal and interest accruing executed, by attaching severally their mark in lieu of individual signature, a principal note for that sum maturing in five years and ten semiannual interest notes each for $75, all without place of payment named and made payable to defendant Giraldin, then employed in Donovan’s office, and secured payment of such notes by deed of trust on appellant’s realty in city of St. Louis, naming Donovan as trustee therein, and the notes indorsed without recourse by Giraldin, a mere accommodation payee, were delivered to Donovan, who at a time not accurate by fixed date, but in 1891, and prior to.maturity of the loan, sold it to Wm. Booth & Co., real estate agents in the city of St. Louis and delivered the principal and non-accrued interest notes to that firm, which subsequently transferred the
It was conceded by respondents that the residence address and name of Thomas Maguire appeared in the city directory for the city of St. Louis for the years of 1896 to 1901 both inclusive, but in such directories the same name, with and without varying middle initial letter, was repeated several times with different addresses, and Donovan had obstructed efforts of Booth & Co. to locate the makers of the notes, asserting he represented them.
Prom the foregoing history of the transactions narrated in the testimony in this action, it is plain that appellants, doubtless industrious people, in their ignorance of business methods and reposing confidence in. Donovan, have been shamefully defrauded by him probably of their frugal savings in their efforts to reduce and pay their mortgage indebtedness, but it is equally manifest that the consequent loss can not be legally shifted upon the innocent holder and purchaser in good faith of the note evidencing such mortgage debt. In making payments to Donovan, without requiring him to produce the principal note, and without having such payments indorsed thereon, as was done when the first
The fraud practiced on appellants was made possible by appellants’ unfortunate negligence and carelessness in making payments to Donovan, the precaution usual in such transactions of demanding the exhibition by him of the note and proper immediate indorsements being omitted and they must suffer the loss as against the true holder, for the hazard they thus assume however innocently and ignorantly their actions may have been.
The judgment is affirmed.