James M. Elliott, Jr., Respondent v. James B. Brady, Appellants

Summary

The New York Court of Appeals affirmed the judgment against the appellants, holding that as non‑parties to a sealed contract they could not invoke a fraud defense to avoid liability on indorsed promissory notes. Their knowledge of the alleged fraud and subsequent affirmation of the contract further barred the defense. A concurrence noted that a fraud defense might be viable if the indorsement had been obtained by fraud, but not here.