District court of Appeal of Florida 2002
D.J. Rivera, a financial advisor to John G. Talcott Jr, a 93 year old man, sold Talcott an investment for about $75,000. This investment did not produce any returns. On Dec. 7, 1999, Salvatore Guarino, a cohort of Rivera, established privileges to cash checks at Any Kind Checks Cashed, Inc. by filling out a customer card with his social security number and by showing his driver’s license. Guarino listed himself as a broker. That same day, he cashed a $450 check. Three days later, Rivera called Talcott and convinced him to send a check for an additional $10,000 made out to Guarino to cover travel expenses, which in turn, would produce a return on his …show more content…
Sullivan v. United Dealers Corp
Kentucky Court of Appeal, 1972
Memory Swift Homes, Inc, contracted with the Sullivans to construct a prefabricated dwelling house for them. On April 9, 1963 the Sullivans executed and delivered their promissory negotiable note for $18, 224.64 to Memorial Swift. On the same day, Memorial Swift negotiated the note and assigned the mortgage to the United, a finance company. On June 25, 1963, United negotiated the note to a bank. The Sullivans made written statements to the bank stating that the foundation of the house has been properly installed and that all work had been performed in a workmanlike manner. In August 1963, the Sullivans made several monthly payments according to the terms of the note, but later defaulted. As a result, the bank then transferred the note back to United for value. United sued the Sullivans, who claimed the defense that United was not a holder in due course of the note and that the contractor had constructed the house in an unworkmanlike manner.
Whether United Dealers Corp, a finance company, was a holder in due course of a promissory note executed and delivered by Sullivan, in payment for building material and labor furnished by Memorial Swift Homes, the payee of the note?
The court held that United was a holder in due