Case Name: National State Bank of Elizabeth, appellant, v. Ellis L. Foster, respondent
Court: New Jersey Court of Errors and Appeals
Jurisdiction: New Jersey
Decision Date: 1920-03-01
Citations: 91 N.J. Eq. 334
Docket Number: 
Parties: National State Bank of Elizabeth, appellant, v. Ellis L. Foster, respondent.
Judges: 
Reporter: New Jersey Equity Reports
Volume: 91
Pages: 334–335

Head Matter:
National State Bank of Elizabeth, appellant, v. Ellis L. Foster, respondent.
[Decided March 1st, 1920.]
On appeal from a decree of the court of chancery advised by Vice-Chancellor Stevens, who filed the following opinion:
This is a creditor’s bill. The defendant, Ellis L. Foster, sold his farm and the grantee made a mortgage to him to secure a part of the price, which mortgage Foster assigned to his wife. Foster had, prior to this sale, endorsed the notes of a corporation called the Sands-ICline Companjr, and upon these complainant has recovered judgment against both maker and endorsers. The case comes within the rale laid down by the court of errors and appeals in Severs v. Dodson, 53 N. J. Eq. 633; for the evidence fails to show actual fraud and, according to the opinion in that caso, we are • not at liberty, in a case circumstanced like the present, to infer constructive fraud merely from the fact of a voluntary conveyance. The additional evidence taken after I had indicated my opiniofi orally does not change it. In fact, this evidence shows that the bank accepted defendant’s re-endorsements after it had notice of the sale. If there is to he any modification of the rule in the case of a stockholder endorsing for a corporation, it must come from the court of errors and appeals and not from this court.
Messrs. King & Yogi, fox the appellant.
Messrs. Yreeland £ Wilson, for the respondent.

Opinion:
Per Curiam.
The decree appealed from will be affirmed, for the reasons stated in the opinion filed in the court below by Vice-Clianeellor Stevens.
For affirmance — Ti-ie Chief-Justice, Swayze, Trenchard, Parker, Bergen-, Minturn, Kaliscii, Black, Wi-iite, Heppeniieimer, Williams, Taylor, Gardner, Ackerson — 14.
For reversal — None.