47 Ind. App. 689 | Ind. Ct. App. | 1911
— On February 26, 1908, Noah Justice executed his unconditional promissory note for $1,052.50, payable at a bank in this State, to the order of E. A. Haney, with six per cent interest after date, and due in four months. Thereafter Haney indorsed it to appellee. On October 20, 1908, appellee filed said note, with an affidavit attached as to its correctness, with appellants, as trustees of said Noah Justice, an insolvent debtor, for allowance and payment as a claim against said insolvent’s estate. On January 4, 1909, appellants disallowed said claim, and on the same day filed it, together with their objections thereto, with the clerk of the court below, and thereupon said claim was docketed as a cause for trial.
The action of the court in sustaining appellee’s demurrer
Appellants concede that appellee came into possession of the note in question before maturity, paying therefor full value; that said note was negotiable under the law merchant ; that appellee purchased the note in no unusual manner, nor at an unusual time; but they do insist that the facts averred in the answer show that while appellee had no actual knowledge of any infirmities of the note, yet the facts surrounding its execution were of such a character as to put it upon inquiry as to the consideration for which the note was given, and its failure to make such inquiry, under the circumstances, amounted to bad faith in making the purchase, and deprived it of its right as an innocent purchaser under the law merchant.
The answer, in substance, shows that appellee knew that the original payee of the note had an office within a few feet of appellee’s place of business; that his only business was operating a bucket shop; that appellee knew, by inspection, that a telegraph instrument and a blackboard were maintained in the office of the payee of said note, and were
For the reasons stated, the judgment is affirmed.