AMERICAN BANK V. MACONDRAY- Forged Indorsements

4 PHIL 695

FACTS:

MANILA, P. I., August 12, 1902.

$300.00

At sight pay to my order three hundred dollars, value received, and charge
to my account.

V. S. WOLFF.

To F. H. TAYLOR & Co.,
Louisville, Kentucky.

No ................................

[Indorsements.]

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.  

HELD:

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.