You are on page 1of 1

Ignalls v.

Marston

156

121 Me. 162 116 Atl. 216, 1918, C. Fryor


Digested by Zoe Velasco Law 108 NIL
Topic: Liability of Accommodation Party
Signing at the back of the note without specifying the capacity will make the signor an
indorser under Section 63.

FACTS
Ignalls sued Herbert Marston, Almeda Marston, Howard Smith, and Walter Foss for
payment of the first installment of a promissory note.
The Marstons signed on the face of the note as makers while Smith and Foss signed at the
back. The payment of the first installment was not demanded on the makers at maturity
while no notice of dishonor was given to Smith and Foss .
The plaintiff maintained his action against all four on the ground that Smith and Foss
were original promissors. The defendants claimed that they were merely indorsers and
free from liability due want of demand and notice. The lower court justice agreed with
Smith and Foss. Hence this appeal.
ISSUES & HOLDING
WON the signature of Smith and Foss at the back of the note made them indorsers? YES.
RATIO
In the Negotiable Instruments Act, Section 63 states that A person placing his
signature upon an instrument otherwise than as maker, drawer, or acceptor, is
deemed to be an indorser unless he clearly indicated by appropriate words his
intention to be bound in some other capacity.
Smith and Foss placed their signatures at the back and didnt indicate by any words
any intention to be bound in some other capacity. Therefore, they are bound by the
aforementioned definition as indorsers.
Additional question: Were the Marstons irregular indorsers and therefore liable
nonetheless?
Section 64 states that Where a person not otherwise a party to an instrument,
places thereon his signature in blank before delivery he is liable as an indorser in
accordance with the following rules:
1. If the instrument is payable to the order of a third person, he is liable to the
payee and to all subsequent parties.
No, there must be demand and notice of dishonor to be considered as an irregular
indorser.

You might also like