BACKING A BILL.

Auckland Star, Volume LIV, Issue 57, 8 March 1923, Page 5

BACKING A BILL.

MAJOR'S SIGNATURT HELD TO BE VALID. Major .T. A. Hope Johnstoiie. retires. Army officer. Auckland ( Mr. XV. IK Anderson), who was sued in the Auck« land Supreme Court by Hancock aod Co.. Ltd.. (Mr. Rogereon) for £50 on a bill of exchange, which he was induced to back by an alleged subterfuge, was held to be liable on the ground tha(| he had been guilty of negligence, in put. ting his signature to the document. His Honor. Mr. Justice Herdmary Riving judgment, said it was possible bni not probable that Major Hope .Johnstone' did not know he was endors* ing a bill nf exchange, but it was dittti cult to believe that he was unaware) that he was making himself a party t« an instrument that could be negotiated, Assuming, lie was deceived by "Captain Lmver.port Brown.' , the man who pre* Rented the bill, and that his mind did not accompany his act when he wrote his name, tin-facts of the case proved, he was guilty of negligence and there<| fore he was estopped from succeeding with the defence that he was fraudu-i lently induced to sign the document 111 the belief that it was something othe* than a bill of exchange (a voucher). When a person met a wanderer frora( some other part of the world —"Captaioi Davenport Brown," who obtained defendant's signature, having come from Canada—he should have taken steps to find out to what extent he was committing himself. fn the present case, however. Major Hope Johnstone had treated the matter lightly, and elected to sign after a casual ipiestion or two and a superficial glance. It would be unfair in these circumstances that he should not shoulder the consequences of his carelessness. Judgment was given for Hancock and Co.. Ltd.. for £50 and costs. The bill had been used by Brown to pay hotel expenses. (