Austin v. Manville

Headnote

Bills, notes and checks — action to recover on promissory notes — defense that defendant had indorsed same for accommodation of plaintiff — counterclaim for fraud.

Austin v. Clarke, 210 App. Div. 807 , affirmed.

Appeal from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered July 21, 1924, affirming a judgment in favor of plaintiff entered upon a verdict. The action was to recover upon two promissory notes. The answer of defendant, appellant, set up as a defense that he had indorsed and delivered the notes in suit for the benefit and accommodation of the plaintiff and the defendant Walter B. Clarke without receiving any value therefor himself, and as a counterclaim set forth a cause of action

for fraud in favor of said defendant and against the plaintiff for falsely and fraudulently representing the assets and the character of the management of the Pennsylvania and Kentucky Oil and Gas Refining Corporation, thereby inducing the plaintiff to pay upon the order and direction of the plaintiff $20,000 for 10,000 shares of the stock of said corporation, when in truth and fact the said stock was worthless.