Schmidt v. Bank of Commerce, 234 U.S. 64 (1914)
Contents:
Show Summary
Hide Summary
General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Schmidt v. Bank of Commerce, 234 U.S. 64 (1914)
Please note: this case begins in mid-page. It therefore shares a citation with the last page of the previous case. If you are attempting to follow a link to the last page of 234 U.S. 63, click here.
Schmidt v. Bank of Commerce No. 281 Argued March 19, 1914 Decided May 25, 1914 234 U.S. 64
ERROR TO THE SUPREME COURT
OF THE TERRITORY OF NEW MEXICO
Syllabus
This Court accepts the rulings of the territorial courts on local questions of pleading and practice. Santa Fe Ry. Co. v. Friday, 232 U.S. 694. Where some of the signatures of defendant makers had been obtained by means of fraudulent representations by the plaintiff holder of the paper, the whole transaction is vitiated even as to those makers who were liable on former existing paper of which that in suit was a renewal.
Where a renewal note constitute a new promise with distinct legal consequences, it cannot be enforced if fraudulently induced, even if there were no defense to the older note in renewal of which it is given.
Under the Negotiable Instrument Act of 1907 of New Mexico, the title of a person negotiating commercial paper is defective if any signature thereto has been obtained by fraud, and if any one person is relieved from liability by proof of fraudulent inducement, all other persons who signed the paper are likewise relieved, although they did not participate in and were ignorant of such fraud.
Where the court, on plaintiffs’ motion, has denied the right of defendants to show that the note sued on was void as to them because of subsequent alteration by addition of signatures of other co-makers, the plaintiff cannot defeat defendants’ defense of fraud in obtaining the later signature on the ground that the notes were completed instrument and binding upon the makers before the others had signed.
16 N.M. 414 reversed.
The facts, which involve the effect of fraudulent inducement to make commercial paper and the rights of co-makers to be relieved of liability in such case, are stated in the opinion.
Contents:
Chicago: U.S. Supreme Court, "Syllabus," Schmidt v. Bank of Commerce, 234 U.S. 64 (1914) in 234 U.S. 64 234 U.S. 65. Original Sources, accessed November 24, 2024, http://originalsources.com/Document.aspx?DocID=E42NICTMR74L68B.
MLA: U.S. Supreme Court. "Syllabus." Schmidt v. Bank of Commerce, 234 U.S. 64 (1914), in 234 U.S. 64, page 234 U.S. 65. Original Sources. 24 Nov. 2024. http://originalsources.com/Document.aspx?DocID=E42NICTMR74L68B.
Harvard: U.S. Supreme Court, 'Syllabus' in Schmidt v. Bank of Commerce, 234 U.S. 64 (1914). cited in 1914, 234 U.S. 64, pp.234 U.S. 65. Original Sources, retrieved 24 November 2024, from http://originalsources.com/Document.aspx?DocID=E42NICTMR74L68B.
|