Peaples Finance & Thift Co. v. Matthews Fruit Co.

This is an action to recover the amount of a cheek made by the appellant corporation and delivered to the defendant Oakes, who transferred it the same day to the respondent. The defendants other than Oakes pleaded fraud and want of consideration as a defense to the action and that the respondent took with notice of his equities. Oakes, the assignee of the check, was owing respondent the sum of $805.75, which was evidenced by two promissory notes and secured by a chattel mortgage of Oakes to one Caplan and assigned to respondent. The check was for $1500 and represented partial payment for the crop of oranges then growing on Oakes’ ranch. The same day that Oakes received the check from the corporation he transferred it to respondent. The respondent paid him the sum of $591.25, being the difference between what Oakes then owed the respondent and the principal amount of the check and agreed that if the cheek was paid by the bank upon which it was drawn respondent would cancel Oakes’ debt to it. The check was duly presented to the bank and payment was refused. Upon the same day that payment of the check was stopped appellants notified the respondent of the fraud, that the Stewart Fruit…