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GRAHAM V. WHITE-PHILLIPS CO., INC., 296 U. S. 27 (1935)

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U.S. Supreme Court

Graham v. White-Phillips Co., Inc., 296 U.S. 27 (1935)

Graham v. White-Phillips Co., Inc.

No. 29

Argued October 23, 24, 1935

Decided November 11, 1935

296 U.S. 27

Syllabus

1. A construction of the Illinois Uniform Negotiable Instrument Act, by the Appellate Court of Illinois, not approved by the state Supreme Court otherwise than by a naked denial of an application for review of the case by certiorari, is not binding on the federal courts. P. 296 U. S. 30.

2. One who purchases a stolen negotiable bond in good faith before maturity, for a valuable consideration, may be a holder in due course despite the fact that notice of the theft had previously come to him, if, through forgetfulness or negligence, he had it not in mind when purchasing. Illinois Negotiable Instrument Act, § 52(4); § 56, construed. P. 296 U. S. 31. chanroblesvirtualawlibrary

Page 296 U. S. 28

3. This is the better doctrine which should be accepted by the federal courts in the absence of an authoritative ruling in the State whose laws apply. P. 296 U. S. 32.

4 F.2d 417 affirmed.

Certiorari, 295 U.S. 728, to review a judgment reversing a decree of the District Court in favor of the petitioner. The proceeding originated in the state court, where the petitioner and respondent here were interpleaded, and was removed to the District Court on the ground of diversity of citizenship.





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