AMERICAN BANK V. MACONDRAY- Forged Indorsements
4 PHIL 695
MANILA, P. I., August 12, 1902.
At sight pay to my order three hundred dollars, value received, and charge
to my account.
V. S. WOLFF.
To F. H. TAYLOR & Co.,
V. S. Wolff. The signature is O. K. payment guaranteed. Protest, demand,
and notice of nonpayment waived. Macondray & Company.
Pay to First National Bank of San Francisco, or order. American Bank,
Manila, P. I. H. B. Mulford, cashier.
Pay to 3rd National Bank or order. The First National Bank of San
Francisco. James K. Lynch, cashier.
American Bank claims the right to recover from Wolff the amount of the bill of exchange upon the theory that Macondray guaranteed the payment of the instrument. This was refuted by Macondray by saying that it didn't guarantee the payment of the instrument. Instead, it only certified the signature of Wolff and that the statement “payment guaranteed xxx” was not written on said indorsement at the time it signed the firm name.
An examination of the alleged indorsement of Macondray & Co. which appeared upon the said bill of exchange at the time of the trial, and the indorsement of said company at the time of the protest of said bill of exchange, shows beyond peradventure of doubt that the contention of the
defendant is true, and that part of the indorsement which says "Payment guaranteed. Protest, demand, and notice of nonpayment waived" was added by some person after the signature of the defendant, Macondray & Co., and after the protest of said bill. The indorsement made by Macondray & Co. was changed, after said indorsement by said company, by adding thereto the statement "Payment guaranteed. Protest, demand, and notice of nonpayment waived," and that the indorsement actually made by Macondray & Co. was in the following form:
V. S. Wolff. The signature is O. K. Macondray & Co.
The liability of an indorser of a bill of exchange, after due protest and notice of nonpayment and dishonor, is the same as that of the original obligors on such a contract, and any material alteration in the terms of this contract by the holder of the same, without the consent of the obligor, will relieve such obligor from all liability thereon.
The original indrosement then of the company was for the purpose only of assuring the American Bank that the signature of Wolff was genuine—that is to say, that the person whom he represented himself to be. It was an indorsement for identification of the person only and not for the purpose of incurring liability to the payment of such bill of exchange.