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Cinema Circuit Corp. v. Merrill Amusement Corp.

Decided: November 1, 1938.

CINEMA CIRCUIT CORPORATION, A CORPORATION, ETC., PLAINTIFF-APPELLEE,
v.
MERRILL AMUSEMENT CORPORATION, A CORPORATION, ETC., DEFENDANT-APPELLANT



On appeal from the Third Judicial District Court of the county of Bergen.

For the defendant-appellant, Atwood C. Wolf.

For the plaintiff-appellee, William V. Breslin.

Before Justices Trenchard and Parker.

Trenchard

The opinion of the court was delivered by

TRENCHARD, J. This is an appeal from a judgment in favor of the plaintiff-appellee against the defendant-appellant.

The plaintiff corporation based its suit upon a check dated April 13th, 1937, and drawn to its order.

The plaintiff being the payee of this check it is not contended that it was a holder in due course, nor does the state of demand allege any facts to indicate anything other than that the suit was for the amount of the check which the defendant had wholly failed, refused and neglected to pay.

At the trial the treasurer of the plaintiff corporation simply identified the check and testified that when it was sent to the bank it was returned marked "payment stopped." He further testified on cross-examination that he himself filled in the amount, date and plaintiff's corporate name as payee of the check; that it was one of several checks signed in blank by the defendant which had been given to the plaintiff several weeks before, and on further cross-examination testified that when the several checks signed in blank were given to the plaintiff corporation by the defendant, together with the check book in which they were contained, it was by "a blanket order given by the secretary of the defendant corporation to make good any amounts that had to be made good from the corporation." Without more, the plaintiff rested. The defendant moved for a nonsuit which was denied.

Thereupon the defense called three witnesses, directors and officers of the defendant corporation, and their testimony established the following facts, which throughout the case

remained uncontroverted; (1) that the defendant's check book and some other checks in blank were given to the plaintiff so that defendant's film bills incurred in the operation of its moving picture theatre could be paid to the film company during the absence, and because of the illness, of the secretary of the defendant corporation; (2) that this authority was revoked April 5th, 1937, at a conference held in the plaintiff's office on that date; (3) that no debt or other ...


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