[Download] "Commercial and Consumer Credit Law - First Circuit Properly Construes Holder in Due Course Doctrine Under Massachusetts Law." by Suffolk University Law Review * Book PDF Kindle ePub Free
eBook details
- Title: Commercial and Consumer Credit Law - First Circuit Properly Construes Holder in Due Course Doctrine Under Massachusetts Law.
- Author : Suffolk University Law Review
- Release Date : January 22, 2008
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 283 KB
Description
Commercial and Consumer Credit Law--First Circuit Properly Construes Holder in Due Course Doctrine Under Massachusetts Law--Jelmoli Holding, Inc. v. Raymond James Financial Services, Inc., 470 F.3d 14 (1st Cir. 2006) Under Massachusetts law, a holder in due course takes a negotiable instrument free from the claims of others; however, when the taker obtains the instrument with notice of another's claim to the instrument, notice will negate the taker's holder in due course defense. (1) Notice of a fiduciary breach concerning the instrument is notice of a claim, so that a person who takes the instrument from a payor with notice of the payor's fiduciary breach to another is not a holder in due course. (2) In Jelmoli Holding, Inc. v. Raymond James Financial Services, Inc., (3) the First Circuit Court of Appeals considered whether, under Massachusetts law, a plaintiff may negate a holder in due course defense when the defendant had no actual knowledge that the person presenting the instrument was a fiduciary. (4) The First Circuit held, pursuant to the General Laws of Massachusetts, that a plaintiff must demonstrate that a defendant had actual knowledge of a fiduciary's status, in addition to notice of the fiduciary's underlying breach of duty. (5)