11 Ga. App. 646 | Ga. Ct. App. | 1912
This was a suit on a promissory note, against the maker. The plaintiffs alleged, in substance, that the note was negotiable, and that' they were innocent holders for value, having purchased it before maturity; that it was originally given by the
1. We think the court did not err in striking the plea. The principle is well established that a note payable to a certain person, or order, becomes negotiable only where it has been regularly indorsed in such a way that the indorsement becomes a part of the paper; and, unless it is a negotiable paper, subsequent holders thereof are not protected from any equity that may exist between the maker and the original payee. Sheffield v. Jackson County Bank, 2 Ga. App. 221 (58 S. E. 386), and citations. Here it is admitted that the note was duly indorsed by the original payee, the Farmers Supply Company. When it was indorsed it was, as to any subsequent holder, clothed with the qualities and incidents of negotiable paper; and the indorsees, Benton, McCommons & Co., subsequently indorsed it to the plaintiffs.
2. By the amendment to the plea it is specifically alleged that the plaintiffs were not innocent purchasers, but took the note with knowledge of the equities of the maker as against the original payee. If, however, Benton, McCommons & Co. were innocent purchasers before maturity and for value, it would be wholly immaterial whether the plaintiffs were such or not; for it is well settled
3. The main point relied upon by the defendant is that there was no indorsement by the trustee in bankruptcy, and that this was necessary in order to pass title. We do not think it was necessary for the trustee in bankruptcy to indorse the note. Its negotiable character had already been determined by the indorsement of the original payee. But in the answer it is admitted that the trustee in bankruptcy sold it under order'of the court and before maturity. The trustee- in bankruptcy acquired no title to the note, except as the representative of the bankrupt; and as the note was negotiable when it came into his possession as trustee, its sale by him under order of the court, and its delivery to the purchaser, were ail that was necessary to pass the title. Judgment affirmed.