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Makel Textiles, Inc. v. Dolly Originals, Inc.

4 U.C.C. Rep. Serv. 95, 1967 WL 8938 (1967)

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Makel Textiles, Inc. v. Dolly Originals, Inc.

Supreme Court of New York

4 U.C.C. Rep. Serv. 95, 1967 WL 8938 (1967)

Facts

Dolly Originals, Inc. (Dolly) (defendant), through its president and principal officer Nathan Goldberg, executed two promissory notes for $5,000 to the order of Makel Textiles, Inc. (Makel) (plaintiff), in exchange for a $10,000 loan. The endorsement on the backs of the promissory notes bore the signatures of Nathan Goldberg and Fred Kushner. Dolly also gave five $2,000 checks to Makel. The checks were signed by Goldberg. One check was paid. Another check was deposited but returned unpaid. Makel sued Dolly, Goldberg, and Kushner for the remaining loan balance of $8,000. Dolly offered no defense to the action, and judgment was entered against Dolly. Goldberg and Kushner moved to dismiss the complaint, arguing that their obligation as endorsers of the promissory notes had been discharged, because Makel had failed to present the promissory notes for payment or give notice of dishonor and nonpayment.

Rule of Law

Issue

Holding and Reasoning (Spiegel, J.)

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