Bills and Notes, Indorser. False and Fraudulent Representations. If an accommodation indorser of a promissory note is induced by false and fraudulent statements of a proposed purchaser of the note, to the effect that the maker of the note is able to pay it and is "perfectly good," to allow the maker of the note to deliver it to such purchaser with his indorsement upon it, he is not liable to the purchaser upon such indorsement, although such representations were made after he had put his name on the note and had returned the note to the maker, if they were made before the delivery of the note to the purchaser and induced the indorser to permit such delivery.
SHELDON, J.
It seems plain to us that upon the evidence the jury were warranted in making the answers that they did to the first five of the questions submitted to them, and that they would have been warranted in finding upon the sixth question that both of the plaintiff's statements were material inducements in determining the defendant to indorse and deliver the note to the plaintiff. Upon such findings the defendant would have been entitled to a verdict, if it were found also, as it might have been, that these statements of the plaintiff were false and fraudulent and that by means of them the plaintiff had intended to procure and had succeeded in procuring the defendant's indorsement. Andrews v. Jackson, 168 Mass. 266. Whiting v. Price, 169 Mass. 576. Boles v. Merrill, 173 Mass. 491. Gurney v. Tenney, 197 Mass. 457. Ginn v. Almy, 212 Mass. 486, 504.
It follows that a verdict should not have been ordered for the plaintiff, and there must be a new trial.
Exceptions sustained.