Ernst
Liberty Bank v. Ernst
Opinion
Lead Opinion
Cashin, J.
An action on a promissory note executed by defendant Ernst to the California Bank of San Mateo and transferred after maturity to the plaintiff.
The answer, which denied that the note was given for value, alleged that the instrument was executed at the request of R J. Falvey, who, as the cashier and manager of the payee bank, by false and fraudulent representations induced the defendant to agree to purchase certain stock in the Nonnenmann Motor Co.; that Falvey agreed to obtain a loan from the payee for the amount of the purchase price of the stock, namely, $1,500, and pursuant to the agreement a note for that amount was prepared by Falvey and presented to the defendant, who signed it, and that the same was delivered to Falvey as cashier and manager of the payee; that Falvey further agreed to credit the proceeds of the loan to the defendant’s account with the payee, which he failed to do, and that as such cashier and manager he appropriated the whole to his own use and to that of the payee and the Nonnenmann Motor Co. A jury returned a verdict for the defendant, and from the judgment entered thereon the plaintiff appealed.