PNB V. PICORNELL
46 PHIL 716
FACTS:Picornell followed the instructions of Hyndman, Tavera and Venutra by buying bales of tobacco. He was able to obtain in National Bank a sum of money together with his commission. He drafted a bill of exchange against the firm and in favor of the bank. It was received by National Bank and was accepted thereafter by the firm. However, on alleged conditions of the tobacco, the bill of exchange was not paid.
HELD:This action for recovery is for the value of the bill of exchange. The firm accepted the bill unconditionally but did not pay it at maturity, wherefore its responsibility to pay the same is clear. The question whether or not the tobacco was worth the value of the bill doesn’t concern the bank. Such partial want of consideration if it was, doesn’t exist with respect to the bank which paid Picornell the full value of the said bill of exchange. The bank was a holder in due course, and was such for value full and complete.
The firm cannot escape liability.