Receivables Finance Corporation v. Frank

Plaintiff, assignee of Shainman & Company, Inc., a bankrupt, sought to recover against the defendants individually as
endorsers of three trade acceptances. The suit was in three counts. The instruments were drawn by Miller-Shainman Company
(the predecessor in name of plaintiff), two on August 30, 1960, and one on November 18, 1960, in the respective amounts of
$15,000, $16,000, and $20,000; the first two were accepted by Westroads Humpty Dumpty Toy & Record acting through defendants,
who were therein specifically designated as its President and Secretary, and the third was accepted by Humpty Dumpty Playland
Stores, Inc., acting through defendants, also specifically designated as its President and Treasurer. Both acceptors were
corporations. All three instruments were regularly delivered; they were payable, respectively, on December 10, 1960, December
29, 1960, and January 10, 1961. On the backs of the first two instruments the following endorsements were made: "William T.
Hamilton Pres. Frank H. Hamilton Secy." On the third, the identical endorsements appear except that the abbreviation "Sec'y" was scratched out and "Treas." written
in its place. The facts as to the drawing, the acceptance and delivery, and the endorsements of the three instruments are
stipulated, and it is also agreed that all three were duly presented for payment, that payment in each instance was refused,
that the defendants were given notice of dishonor and that demand was duly made. The sum of $16,185 had been paid on the third
instrument, nothing on the other two. The defendants were officers of the two corporations which accepted the instruments;
both corporations were in the business of selling toys, and Shainman & Company, Inc. was a wholesale distributor of toys.