Mariner Harbor National Bank v. Graham Beach Estates, Inc.

Headnote

Bills, notes and checks — negotiable instruments — action to recover on promissory note — indorsement making same non-negotiable and subject to defenses set up in answer.

Mariner Harbor Nat. Bank v. Graham, Beach Estates, Inc., 219 App. Div. 721 , affirmed.

Appeal from an order of the Appellate Division of the Supreme Court in the second judicial department, entered January 4, 1927, reversing a judgment in favor of plaintiff entered upon a verdict directed by the court and granting a new trial. The action was to recover upon a promissory note. The note had on its back the following indorsement:

“ This note is given and payable on completion of gas plates and piping and ability to make and furnish gas properly by June 1st, 1924.

“ Gasgo Power Corporation,

"A. E. Dickerman,

“Pres, and Gen’l. Mgr.

“ Allen E. Dickerman,

" Agent for Midland Gasgo Corp.”

The defense was that the note was given pursuant to an agreement by payee to establish a gas plant and install piping and that the work was never completed;