Delaus W. Herrick, Respondent v. George A. Woolverton, Appellant

Summary

The Court of Appeals reversed the General Term and affirmed judgment for the defendant, holding that a note payable on demand with interest transferred nearly three months after its date is subject to any defence the maker had against the original payee. The Court reasoned that such a note is deemed dishonored after a reasonable time, so the transferee takes it subject to prior equities. Concurring opinions agree with the result, offering additional reasoning on the scope of Merritt v. Todd and the effect of interest on demand notes.