Stewart v. Lansing - 104 U.S. 505 (1881)
U.S. Supreme Court
Stewart v. Lansing, 104 U.S. 505 (1881)
Stewart v. Lansing
104 U.S. 505
1. The endorsee of negotiable paper which has a fraudulent or illegal inception must, in order to recover thereon, prove that he is a bona fide holder thereof for value.
2. Coupon bonds of a town in New York were by commissioners executed to a railroad company pursuant to an order of a county judge which was annulled and reversed by the judgment of the supreme court in a proceeding whereof, before they were issued, the commissioners and the company had due notice. Held, 1. that, as between the company and the town, the bonds are invalid; 2. that in an action on coupons detached therefrom, the plaintiff must, to make out his right to recover against the town, establish his bona fide ownership of them; 3. that upon the question of such ownership, a judgment in his favor upon other coupons detached from the same bonds does not estop the town.
3. Upon the evidence in this case, it was not error to charge the jury to find for the town.
The facts are stated in the opinion of the Court.